Gojek and Tokopedia announced today (May 17) that they have combined their businesses to form the GoTo Group.
Earlier this year, Bloomberg reported that Gojek was in advanced merger talks with Tokopedia, one of Indonesia’s largest e-commerce sites. The combined entity plans to be listed in the United States and Indonesia.
According to a press release, in a press release, the agreement “marks the largest business combination ever in Indonesia and the largest to date between two media and Internet service companies based in Asia.”
To put corporate values into context, Gojek is currently valued at around US $ 10.5 billion, while Tokopedia is valued at around US $ 7.5 billion.
The group also claimed to have reached a total group gross transaction value of more than US $ 22 billion in 2020, as well as more than 1.8 billion transactions.
The combined ecosystem of Gojek and Tokopedia accounts for 2% of Indonesia’s gross domestic product. The company is backed by investors such as Alibaba Group, Google, Temasek, Facebook, and Paypal.
The establishment of GoTo Group, with its wide and fast delivery services and strong penetration, will mean that same day e-commerce delivery is getting closer to becoming the norm in Indonesia. GoTo will also continue to expand its payments and financial services offerings to deliver an improved financial experience for consumers, drivers and merchants, while expanding to reach more underserved segments in Indonesia, where 140 million people have little or no no access to the country’s financial system.
GoTo Group in a press release
Following the merger, Andre Soelistyo of Gojek will lead the combined business as CEO of GoTo Group, and Patrick Cao of Tokopedia will serve as President of GoTo Group.
Kevin Aluwi and William Tanuwijaya will remain CEOs of Gojek and Tokopedia respectively. The two companies did not mention the financial details of the merger, however.
Gojek, Grab merger canceled
Prior to its merger with Tokopedia, Gojek was considering a merger with Grab. The merger, however, was called off in January of this year.
Sources familiar with the matter told The Business Times that the two largest ridesharing companies in the region had failed to agree on various issues, including “valuation and corporate culture.”
News of the possible merger also sparked backlash in the public in Indonesia, with Indonesian motorcycle riders’ unions threatening to launch protests over fears of significant job losses.
Featured Image Credit: Mime Asia / Go Kompas
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