SE Asian giants Gojek, Grab in merger talks: Report

Southeast Asia’s largest ride-hailing and food delivery companies Grab and Gojek, both of who command valuations of over $10 billion each, are discussing a potential merger, according to The Information.

Citing sources, The Information reported that even as the management of the two companies has met occasionally over the past two years, discussions of a merger became serious over the last couple of months.

The report further said that Grab President Ming Maa and Gojek CEO Andre Soelistyo had met earlier this month for the latest round of talks while adding that both sides were still a considerable distance from a potential deal.

In response to DealStreetAsia’s query, a Gojek spokesperson said: “There are no plans for any sort of merger, and recent media reports regarding discussions of this nature are not accurate.”

DealStreetAsia has also contacted Grab for comment.

According to The Information, Grab had told its major investors that Gojek wanted a 50-50 deal if a merger were to happen, while the former wanted a significant majority.

Other stumbling blocks include the valuation of both companies, as well as regulatory clearance for a merger, the report said.

See also: A Grab-Gojek union? Hope wrapped in a tangled mess of issues

An industry executive linked to Gojek had earlier told DealStreetAsia that, as a first step, Grab and Gojek may look at stopping the price war in both ride-hailing and food delivery to stem losses. This executive pointed out that ride-hailing firms Ola and Uber, while officially not acknowledging the same, are in a similar arrangement in India, where they had scaled back driver incentives and also raised prices during the last two years.


Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.