Southeast Asian ride-hailing and delivery company Grab has denied reports of discussions to acquire Indonesian rival GoTo.

In a stock exchange filing on Monday, Grab stated, “The parties are not involved in any discussions at this time and Grab has not entered into any definitive agreements.”

This announcement follows media reports about a potential US$7 billion acquisition of GoTo, with Indonesia’s sovereign wealth fund Danantara said to be considering a role in the deal.

Stefanus Ade Hadiwidjaja, Danantara’s managing director of investments, also denied the claims.

He told Indonesian media outlet Tempo that no discussions have occurred. Similarly, GoTo confirmed to the Jakarta bourse that no agreements have been made regarding a potential transaction.

Grab reported a 19% growth in on-demand gross merchandise value and a 23% increase in mobility rides for April and May 2025 compared to the previous year.

Speculation about a merger between Grab and GoTo has arisen periodically in recent years, although both companies have consistently denied any such plans.

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🔗 Source: Reuters

🧠 Food for thought

1️⃣ Southeast Asian super-app consolidation follows historical precedent

The on-again, off-again merger discussions between Grab and GoTo mirror similar consolidation patterns across Southeast Asia’s tech landscape.

This marks the latest chapter in a multi-year competitive saga that began with aggressive regional expansion in 2018, when Go-Jek announced a $500 million investment to enter Vietnam, Thailand, Singapore, and the Philippines in direct response to Grab’s acquisition of Uber’s regional operations 1.

Both companies have evolved far beyond ride-hailing into “super-apps” offering food delivery and payments, with Grab processing transactions worth $19 billion in 2024 while GoTo’s combined entities generated over $20 billion in gross transaction value 2.

The financial pressures driving potential consolidation are clear: Grab reported a $158 million net loss in 2024 while GoTo lost $331 million that same year, highlighting how the “cash-burning war” for market share has challenged profitability for both companies 3.

This reflects a recurring pattern in digital platform economics where markets eventually consolidate toward one or two dominant players after extended periods of subsidized competition.

2️⃣ Regulatory scrutiny reflects Indonesia’s strategic tech priorities

Indonesia’s regulatory response to the potential $7 billion merger reveals the country’s growing determination to protect its developing tech ecosystem.

The Indonesian Competition Commission (KPPU) has expressed significant concerns about market concentration, particularly given estimates that a combined entity could control over 90% of Indonesia’s ride-hailing market in certain segments 4.

Regulatory caution is heightened because Indonesia represents Grab’s largest market by population, with the company having expanded to 100 Indonesian cities by 2018 while investing heavily in local payment infrastructure 5.

The potential involvement of Indonesia’s sovereign wealth fund Danantara in the deal structure signals how national interest concerns are becoming central to major tech transactions in the region 2.

This regulatory approach reflects Indonesia’s broader strategy of maintaining local control and influence over key digital infrastructure while still allowing foreign investment and technological advancement.

3️⃣ Driver interests highlight broader gig economy tensions

The skepticism from drivers about structural changes to ride-hailing platforms demonstrates the precarious position of gig workers in evolving digital economies.

As early as 2018, Indonesia’s Online Drivers Association actively opposed government attempts to reclassify ride-hailing services as public transportation, fearing it would undermine the partnership model between drivers and platforms 6.

These concerns persist today as any Grab-GoTo merger would likely lead to service integration, potentially reducing driver leverage and altering compensation structures across the combined platform 7.

Driver resistance reflects the fundamental tension in the gig economy between platform efficiency (which often means reducing driver costs) and sustainable livelihoods for workers who provide the actual services.

This represents a critical challenge for emerging economies like Indonesia, where ride-hailing has created flexible income opportunities for hundreds of thousands of workers who now face uncertainty as the sector matures and consolidates.

Recent Grab developments

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