Southeast Asian on-demand transport startup Gojek denies that it is involved in talks to merge with Grab. But today Grab announced a piece of news that — at the very least — will either divert attention away from a possible merger with Gojek or stoke the fires of speculation that it is indeed gearing up for a deal. Grab did not disclose its valuation with the latest investments. The news comes directly on the heels of rumors that Grab is in talks to merge with its big regional rival, Gojek.
Gojek has denied the reports directly to TechCrunch, while Grab declined to comment but pointedly did not deny although a source close to Grab confirms that they have been talking for 3.
Both deals are important not just for Grab but its new investors, which are looking for more opportunities and customer channels into a wider region of Asia beyond their common home market of Japan. The financing development looks like it may have been precipitated by the report that surfaced on Monday from The Informationwhich reported that it is in merger discussions with Gojek, a ride-hailing business based out of Indonesia and also a big player in on-demand transportation and related services in the region.
Grab raises up to $856M to boost payments business as rumors swirl of a merger with rival Gojek
A merger is one possible solution to the costly rivalry being waged by the two companies in Southeast Asia and the statements may be an effort to ward off attention before a deal nears completion.
Both companies have expanded beyond ride-hailing into a wide range of services, including food deliveries and payments, through their apps. The logic here is that while ride-hailing has proven to be a very popular business both in terms of attracting drivers and passengers in the two-sided marketplacethe unit economics of ride-hailing on their own have nevertheless proven time and again to be disastrous — largely because the operational costs needed to build and run these kinds of businesses are just too high when you take into account the competitive landscape.
Thus, with Grab and Gojek, the pair have expanded into delivering other things besides passengers — such as food — and using the financial relationships they already have with users paying for transport in the app to provide other financial services. But even that may not be enough to tip into the black — a need that investors would have eventually called in, after handing over billions in funding and waiting for many years to get a return.
And that, most likely, is why we are now hearing about deals like this and will probably hear about more in other regions, too.
According to the Information, executives from Gojek and Grab have met occasionally over the past several years and began to discuss a merger more seriously recently. It appears that the company has been working on the round, a Series F, for more than a year at this point. One thing is certain: the bigger consolidation trend does mean the field of players is getting smaller. The funding is coming in two tranches that were actually announced separately.Developer of an on-demand mobile application designed to offer ride-hailing services.
The company's application delivers everything from meals and groceries to cleaners, masseuses and hairdressers across Indonesia, all at a touch of a smartphone application, enabling users to access ride-hailing, logistics and digital payment services in just one tap. What you see here scratches the surface.
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Request a free trial Log in. Gojek Overview Update this profile. Founded Status Private. Employees 4, Investors Gojek General Information Description Developer of an on-demand mobile application designed to offer ride-hailing services. Ownership Status.History of Grab (And How it Beat UBER in Southeast Asia)
Privately Held backing.A spokesman said the company would "prioritise its high-impact core businesses of payments, transport and food delivery in a long-term response to the COVID pandemic. Reuters reported earlier on Tuesday that the firm would announce layoffs, citing people with knowledge of the matter.
Shutting the units is expected to have a knock-on impact on contractors providing services to GoLife, which numbered around 60, in The startup said it would also close down the food courts it operates, known as GoFood festivals.
Founded in as a ride-hailing firm, Gojek has since evolved into a one-stop app through which users can make online payments and order food and services, and claims million users in Indonesia. Widespread closures over the coronavirus pandemic have battered the ride-hailing industry and the gig economy, with firms cutting jobs globally. The impact in Southeast Asia has been severe, with 11 drivers for Grab and rival Gojek earlier telling Reuters their income had dropped by more than half during the outbreak.
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Indonesian ride-hailing firm Gojek cuts 9% of staff
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Gojek drivers wearing protective masks wait for a customer along a road in Jakarta, Indonesia on Wednesday, April 22, VIDEO Related Tags. News Tips Got a confidential news tip? We want to hear from you. Get In Touch.
Gojek has won financial backing from investors including Astra Internationalblibli. Founded in with 20 motorbike drivers,  its fleet now exceeds 1 million drivers and offers 18 app-based on-demand services as of May Gojek was co-founded by Nadiem Makarim and Michaelangelo Moran. He worked at McKinsey and Co. Gojek was built to solve this problem, by providing a platform where drivers and riders can connect efficiently and allowing those drivers to improve their income.
As of Maythe app offers 18 services,  with 2 upcoming new services in the online content business  which makes for a total of 20 on-demand services under one platform. Being an Indonesian-run startup played to Gojek's advantage in navigating the local regulatory environment, as well as understanding the local market. This enabled them to bundle features into its app that better suits both local drivers and local consumers. Gojek's journey in becoming a unicorn startup started in late when it secured its first financing round from NSI Ventures, the venture capital fund in the Northstar Group.
In JuneFacebook's messaging platform WhatsApp and PayPal announced they had invested in Gojek as part of the ongoing fundraising round. Whilst not disclosing the size and nature of the investments, the investments were described as "meaningful". The company's rapid growth triggered a chain of acquisitions and partnerships. InGojek announced acquisition of two engineering startups based in India, C42 Engineering and CodeIgnition,  and established a development centre in BangaloreIndia.
Init acquired Loket. Init announced a collaboration with Blue Bird, a major Indonesian taxi company. By Augustit had become Indonesia's first online transportation system. In Augustthe Wall Street Journal reported that Gojek had held "preliminary talks" with Amazon on a partnership that would involve the retail giant making a sizable investment in Gojek to tap into the company's delivery infrastructure in order to expand Amazon's market reach in Indonesia.
A research study reports that the average income of full-time driver partners Rp 3. The average income of driver partners Rp 3. Another research article reported that Gojek contributed Rp 8. On 22 JulyGojek unveiled a new logo. Its new icon, which nicknamed as "Solv", symbolized Gojek's transformation from being a ride-hailing service to become a super app that provides a variety of smart ways to eliminate hassles. Gojek operates in many large and medium-size Indonesian cities,  and also in rural areas within Indonesia.
Gojek launched its ride-hailing service in Singapore on 10 January as part of "an enhancement of its beta phase". Its president, Andre Soelistyo, said that it is committed to "bringing choice back to the ride-hailing market in Singapore". Gojek has an office in Singapore, with data science and engineering capabilities,  and Bangalore, India, which was created with the acquisitions of C42 and CodeIgnition, and focuses on product, engineering and design. Gojek ranks number 17 in Fortune's list of "56 Companies that Changed the World,"  making it the only company from South East Asia to make the list.
Facebook, PayPal invest in Indonesia's ride-hailing firm Gojek
Gojek has more than 3, employees, including engineers in its three Jakarta-based headquarters, a data science office in Singapore, and an engineering facility in India. The Gojek headquarters in Jakarta revamped an old mall into a modern working space with a cinema, a playroom with arcade games and pool tables, as well as office cafes and nap rooms.
Gojek's rapid growth and market dominance in Indonesia has led to prominent media coverage, including criticism primarily stemming from conventional taxi and ojek services. PM replaced the previous PM 26, regulating the use of private cars being used for public transportation. Gojek sponsored the Liga 1 from to in with Traveloka. Gojek also sponsored Persib Bandung from From Wikipedia, the free encyclopedia.
Indonesian technology company. Trade name. Jakarta, Indonesia. Jakarta portal Indonesia portal. Retrieved 27 August Facebook has invested in Indonesian ride-hailing and food delivery company, Gojek. The U. Gojek said PayPal also participated in its current funding round along with Facebook. Investments from the two U. Gojek said the collaboration with PayPal would allow users of its digital wallet, GoPay, to access the U. That investment gave the social network a 9.
Both India and Indonesia have large populations that are coming online. They present a valuable opportunity for global tech companies like Facebook to build out their commercial services to micro, small and medium-sized businesses, particularly through the popular messaging service WhatsApp.
Gojek already has a number of prominent backers including GoogleTemasek and Chinese tech giant Tencent. Sign up for free newsletters and get more CNBC delivered to your inbox. Get this delivered to your inbox, and more info about our products and services. All Rights Reserved. Data also provided by.
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Key Points. Facebook has invested in Indonesian ride-hailing and food delivery company Gojek. Related Tags. News Tips Got a confidential news tip? We want to hear from you. Get In Touch. CNBC Newsletters.With the year beginning amid a "winter" for venture investment, Asia's billion-dollar startups will be more tested to prove their quality of growth, especially if they pursue an IPO.
In14 of the 23 new Asian unicorns came from China, including online apartment rental startup Danke Apartment and home decoration platform Kujiale. He noted that presenting a road map to profitability may be hard, especially for Chinese companies, because of the fierce competition.
Many of China's startups "choose to invest in their businesses until they become the market leader," he said. Recent gross domestic product growth rates are pointing to a three-decade low. That could further chill investors' confidence and make them more selective. All told, those companies will need to prove the quality of their growth amid the changing market environment to make investors -- both private and public -- more confident.
He pointed out that some unicorns could reach higher valuations in next fundraising rounds inas low interest rates globally will possibly continue to fuel venture capital investment. Kitagawa of CyberAgent Capital shared a similar view: "More startups will go through markdowns before their IPO due to their excessive valuations when they were still private," -- a caution against repeating the failure of WeWork.
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