Ride-hailing giant Gojek and marketplace Tokopedia said on Monday they have combined their businesses to form GoTo Group, the largest technology group in Indonesia.
Gojeks Andre Soelistyo will lead the combined business as GoTo Group CEO, with Tokopedias Patrick Cao serving as GoTo Group President. Kevin Aluwi will continue as CEO of Gojek and William Tanuwijaya will remain CEO of Tokopedia, the two firms said in a joint announcement.
The combined entity, valued at about $18 billion, is “a globally unique and highly complementary ecosystem,” the two firms said. It features:
- Total Group Gross Transaction Value (GTV) of over US$22 billion in 2020
- Over 1.8 billion transactions in 2020
- Total registered driver fleet of over two million as of December 2020
- Over 11 million merchant partners as of December 2020
- Over 100 million monthly active users (MAU)
- An ecosystem that encompasses 2% of Indonesias GDP
The deal, which has been in the works for several months, comes after Gokek spent several quarters exploring a merger with its chief Southeast Asian rival Grab.
“Today is a truly historic day as we mark the beginning of GoTo and the next phase of growth for Gojek, Tokopedia and GoTo Financial. Gojek drivers will deliver even more Tokopedia packages, merchant partners of all sizes will benefit from strengthened business solutions and we will use our combined scale to increase financial inclusion in an emerging region with untapped growth potential. For the consumer, GoTo Group will continue to reduce frictions and provide best in class delivery of goods and services. This is the next step of an exciting journey and I am humbled and proud to lead the GoTo movement, said Andre Soelistyo, CEO of GoTo Group, in a statement.
Tokopedias Co-founder and CEO William Tanuwijaya said, The establishment of GoTo Group proves that you can believe in an Indonesian dream and make it a reality. Our goal has always been to build a company that creates social impact at scale, levelling the playing field for small businesses and giving consumers equal access to goods and services across the country. In addition to accelerating the growth of Indonesia’s digital economy, GoTo Group will make it easier for people from all walks of life to access quality products and services, anytime and anywhere. We still have a long way to go to achieve our goals, but today is about starting that journey together.
This is a developing story. More to follow…