Grab Holdings Ltd. and GoTo Group have accelerated merger talks and target a deal this year, seeking to end years of losses in Southeast Asia’s competitive internet market.
Discussions have intensified in recent weeks and the companies see 2025 as an opportune year for a deal, according to people familiar with the situation. The unprofitable firms — the two biggest ride-hailing providers in Southeast Asia — have held on-and-off talks for years, targeting a combination that would reduce costs and competitive pressure in the region of more than 650 million consumers.
Singapore’s Grab, backed by Uber Technologies Inc., and Indonesia’s GoTo, whose investors include Softbank Group Corp., have both made progress toward profitability following their stock-market debuts in recent years. But competition for users has kept prices in check and squeezed margins.
In the years past, hurdles for a merger have included disagreements between the parties as well as potential antitrust obstacles caused by the companies’ dominance in markets such as Indonesia and Singapore. And the current talks may not lead to a transaction at all, said the people, asking not to be identified as the matter is private.
A GoTo spokesperson declined to comment, while Grab representatives had no immediate comment when contacted by Bloomberg News. DealStreetAsia earlier reported the companies’ target of reaching a deal this year.
What Bloomberg Intelligence says
Advancements in potential merger discussions between Grab and GoTo, reported by DealStreetAsia, effectively cement both firms’ market leadership amid intensified rivalry in the sector, but the deal will face tough regulatory scrutiny as the two are the top on-demand-service players in many of Southeast Asia’s key markets. Taxi operator Trans-Cab is entering Singapore ride-hailing, while foreign entrants such as Bolt, in-Drive and Lalamove Ride are shaking up the space, making headway in Indonesia, Malaysia and Thailand.-Nathan Naidu, analyst
Shares of GoTo advanced as much as 6.2% in Jakarta on Tuesday, bringing their gain this year to more than 20%. Grab has declined about 4% in New York so far in 2025. Together, the companies’ market value approaches US$25 billion ($33.96 billion), rivalling the capitalisation of some of the biggest companies in Southeast Asia.
While discussing a combination, the companies each have struck smaller deals in a bid to improve their finances. Grab has bought a supermarket chain in Malaysia and a reservation app in Singapore, while GoTo a year ago agreed to relinquish control of its loss-making e-commerce arm to ByteDance Ltd.’s TikTok in a US$1.5 billion deal.
Meanwhile, the companies’ growth has cooled dramatically from triple-digit rates in years past as customers in the region curb spending to cope with elevated inflation and interest rates. Demand is increasing at a slower pace as their customer base expands and consumers are less eager to hail a ride or get food delivered to their door in a challenging macroeconomic climate.
