Grab and Goto (Gojek) Possible $7 Billion Deal Sparks Concerns

 

On March 18, 2025, reports surfaced that Grab Holdings is moving ahead with its potential acquisition of Indonesia’s GoTo Group. According to sources familiar with the matter, the Singapore-based ride-hailing and delivery giant has begun due diligence on its rival, reviewing GoTo’s financial accounts, contracts, and operational structure.

Although the two companies have not officially announced a deal, discussions have intensified. Both Grab and GoTo, along with their shareholders, are assessing the possible structure and valuation of an agreement. However, there is no certainty that the talks will result in a finalized merger or acquisition.

GoTo was formed in May 2021 through a merger between Indonesia’s leading ride-hailing firm, Gojek, and e-commerce platform Tokopedia. This consolidation created one of Southeast Asia’s largest tech firms, competing directly with Grab across multiple sectors, including ride-hailing, delivery, and digital payments.

Over the years, Grab has engaged in on-and-off negotiations with GoTo, but a merger has never materialized, partly due to concerns over antitrust regulations. With both companies dominating the Southeast Asian market, regulators may view a potential merger as monopolistic. Analysts estimate that a combined Grab-GoTo entity would control around 60-70% of the region’s on-demand services market, a situation that could attract significant regulatory scrutiny.

According to Bloomberg News, Grab is considering valuing GoTo at more than US$7 billion (S$9.3 billion), with a potential all-stock purchase priced at over 100 rupiah per share. GoTo’s stock price rose 3.8% to 76 rupiah as of 1 pm on March 18 in Jakarta, reflecting a market value of around 90 trillion rupiah (S$7.3 billion). Investors, including SoftBank Group, have shown optimism as GoTo’s shares have climbed over 8% this year.

Despite this, analysts believe regulatory approval will be a significant hurdle. Bloomberg Intelligence analyst Nathan Naidu highlighted that such a merger could lead to job losses due to overlapping operations, making it an even more contentious issue for regulators. He further noted that regulators are unlikely to approve a deal that would significantly reduce competition in Southeast Asia’s digital services market.

Both Grab and GoTo have experienced slowed growth in recent years, moving away from the triple-digit expansion they once enjoyed. This decline is attributed to weaker consumer spending as Southeast Asians grapple with inflation and high interest rates. As a result, the companies are under pressure to find ways to sustain profitability, and consolidation could be seen as a strategic move to strengthen their market positions.

While neither Grab nor GoTo has commented on the ongoing talks, 2025 is viewed as a crucial year for a potential deal. If successful, this acquisition could reshape the landscape of Southeast Asia’s ride-hailing and e-commerce industries. However, given the regulatory concerns and market implications, the outcome remains uncertain.

Private hire drivers in Singapore are voicing concerns that the merger could jeopardize their livelihood, as a single dominant ride-hailing company may further manipulate fares, especially with the already low fare system. Many drivers have pointed out that the combination of declining fares, rising car rental costs, and increasing petrol prices is forcing them to work longer hours just to make ends meet. With this merger, they fear fares could drop even further, making their situation worse. As a result, many drivers are hoping the merger does not go through.