GoTo Business Contains Four Gojek and Tokopedia Business Lines
On-demand service company Gojek and e-commerce Tokopedia officially merged and created a joint entity called the GoTo Group. The merger of the two decacorns further strengthens their digital ecosystem.
GoTo’s CEO, who previously served as Gojek’s Co-CEO, Andre Sulistyo, said that the combined entity resulting from the merger with Tokopedia will bring a unique digital ecosystem.
“GoTo will provide more solutions and convenience in the daily lives of consumers,” he said in a press release today (17/5).
Gojek currently has a fairly broad business line. From the transportation sector, for example, Gojek has ride-hailing services for GoRide, GoCar, and GoBlueBird. This transportation business is supported by a food delivery service, GoFood.
For the sector of the daily need, Gojek has GoShop, GoMart, GoMall, and GoStore services. Meanwhile, in the logistics sector, Gojek has GoSend and GoBox services.
In the financial sector, Gojek also has many services, ranging from insurance through GoSure, investment through GoInvest, to payments via GoPay, GoBils, or GoGive.
In addition, in the health sector, Gojek also has GoMed in collaboration with Halodoc. Then, services that target the Micro, Small and Medium Enterprises (UMKM) sectors are GoBiz and GoToko.
The company also has 2 million driver-partners and 900 thousand MSME partners. After the merger, the Gojek ecosystem will increase in number. Gojek services will also be integrated with Tokopedia’s e-commerce services.
GoTo Combines Services between Gojek and Tokopedia
President of GoTo who previously served as President of Tokopedia Patrick Cao said that GoTo would combine e-commerce services, food and goods delivery, transportation and finance.
“GoTo combines Gojek transactions which have high volume and frequency, with Tokopedia which has a medium frequency, but with high transaction value,” said Patrick.
Tokopedia also has various services similar to Gojek. For food delivery, for example, Tokopedia has Tokopedia Nyam! and Tokopedia Play entertainment services.
For financial services, Tokopedia also has a stake of 36.1% in the parent OVO payment technology (fintech) platform, Bumi Cakrawala Perkasa.
Until now, Tokopedia also has 10 million MSME partners and 100 million active users in its ecosystem. Executive Director of the ICT Institute Heru Sutadi predicts the merger of Tokopedia and Gojek will complement each other.
“The merger will strengthen the ecosystem of the two companies. In the end, it will strengthen their position in the digital business in Indonesia, “he said, some time ago.
Gojek will strengthen the retail and logistics business. Meanwhile, Tokopedia can improve its foodservice and instant delivery of goods.
“The merger will strengthen the ecosystem and business portfolio, because it will include ride-hailing and its derivatives, online payments, and e-commerce,” he said.
Increase the Valuation of Both Companies
The merger of the two companies will automatically increase the valuation of the two decacorns. In fact, based on data from CB Insight, GoTo has the potential to reach a valuation of around US$ 40 billion or around IDR 570 trillion.
The calculation is that the valuation of each company prior to the merger was worth US$ 10 billion. After the merger, the company targets a higher valuation.
“The joint venture is reportedly targeting a valuation of up to US$ 40 billion if it goes public,” said the CB Insight report.
CrossASEAN Research founder Angus Mackintosh assessed that the Gojek-Tokopedia merger was also aimed at smoothing out plans to seek more funding on the stock market. That way, Gojek-Tokopedia could have a valuation of around US$ 35 billion – US$ 40 billion.
According to Mackintosh, to convince investors in the capital market with such a valuation, the merger of the two companies is important.
Statista estimates that GoTo’s valuation will reach US$ 17 billion or IDR 242 trillion. GoTo is included in the list of highly-rated technology companies in the world. The GoTo Group will also contribute more than 2% to Indonesia’s total Gross Domestic Product (GDP). As a group, GoTo has also reached more than 1.8 billion transactions.