GoTo and Grab are negotiating a merger of their super-apps in Indonesia after years of market-share battles that burned through billions. Both now prefer cutting costs over financing endless discount wars.
📣 Government greenlight: After early hesitation, the government is now backing the US$29 billion deal. Indonesia’s sovereign wealth fund Danantara may receive a “golden share” with veto rights.
💼 Monopoly muscle: Together, they would control more than 90% of Indonesia’s ride-hailing and delivery market. That sparks monopoly concerns and pressure on prices, drivers, and smaller rivals like Maxim and inDrive.
🛵 Rider risk: Driver groups warn of reduced bonuses and weaker competition. The business runs on thin margins, high fees, and constant protests. The government promises protections, but details remain unclear.
📉 Profit vs. problem case: Grab is profitable and growing steadily. GoTo, however, is loss-making and down over 80% since its IPO. A merger could cut costs but may also leave GoTo heavily dependent on Grab.
📛 Regulator alarm: Antitrust watchdogs are still examining risks around data dominance, algorithms, and pricing. The US$29 billion giant would need to integrate cloud systems, payments, e-commerce, and local compliance across markets.
Big Picture
The era of growth at any cost is over. Survival and stability now drive strategy. If Jakarta approves the deal, Southeast Asia could get a state-backed platform champion with massive influence over mobility, delivery, digital payments, and millions of jobs.
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