Southeast Asia’s largest ride-hailing and food delivery companies Grab and Gojek, both of whom command valuations of over $10 billion each, are discussing a potential merger, according to The Information.
Citing sources, the report said that the management teams of the two companies have met occasionally over the past two years and discussions of a merger became serious over the last couple of months.
The report further said that Grab president Ming Maa and Gojek co-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.
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.