After months of rumors, Indonesian tech startup giants Gojek and Tokopedia have finally merged to form GoTo, as confirmed by both companies today.
In a press announcement, the combined entity, which takes the first syllables of each companies’ names, said it is combining “e-commerce, on-demand and financial services” to become the first in Southeast Asia to host the three essential services under one ecosystem.
Gojek and Tokopedia continue to exist as stand-alone brands operating under the GoTo Group ecosystem.
What does this all mean to the average user like us? Well, expect cheaper same-day delivery fees for Gojek drivers when buying products on Tokopedia, paying for products on Tokopedia using Gojek’s Gopay (instead of Ovo previously), and a plethora of promos and loyalty programs that encompass the two apps.
Gojek began as a ride-hailing app in 2010 before it evolved into an all-encompassing superapp minus an online marketplace, while Tokopedia has become Indonesia’s leading e-commerce platform since it was founded in 2009. The combined forces of the two companies, which include their respective financial services arms, will theoretically see GoTo Group become the go-to destination for most digital consumer needs in Indonesia.
Combined, the two companies claim to have a gross transaction value of over US$22 billion from over 1.8 billion transactions in 2020, and that the ecosystem would encompass 2 percent of Indonesia’s GDP. The two companies’ major investors, including Alibaba Group, Astra International, Facebook, Google, Temasek, and Tencent are said to have backed the deal.
The deal has been in the works for several months after Gojek’s planned merger with regional rival Grab fell through in 2020. Previously, it was reported that the GoTo merger would involve plans for separate public listings in the Indonesian Stock Exchange (IDX) later this year and a combined IPO in the US following that, though the official announcement did not touch on the matter.
It’s not immediately clear how much stake each company owns in the merger, though it was previously reported that Gojek would command 60 percent to Tokopedia’s 40. That may be an accurate estimation, as Gojek co-CEO Andre Soelistyo has been appointed GoTo Group’s CEO, with Tokopedia’s Patrick Cao as its president.
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