Grab Holdings is working toward a deal to acquire Indonesian rival GoTo in the second quarter of 2025, in a move that could dramatically reshape Southeast Asia’s ride-hailing and delivery landscape, sources familiar with the matter told Reuters. The proposed deal, valued at around $7 billion, is currently under negotiation with advisors and banks, and remains subject to financing terms.
Grab, which is headquartered in Singapore and listed on the Nasdaq, seeks to acquire GoTo’s international unit in Singapore, as well as its entire Indonesian operations excluding its finance arm, sources said. GoTo, which provides e-commerce, food delivery, and digital financial services, is backed by SoftBank and Taobao China Holding and is widely seen as Indonesia’s largest digital ecosystem.
A deal between the two would result in a dominant regional player controlling an estimated 85% of Southeast Asia’s $8 billion ride-hailing market, according to Euromonitor International. In Indonesia, the merged entity would hold over 91% market share, and nearly 90% in Singapore, raising significant antitrust concerns.
“Markets, especially in Indonesia and Singapore, will impose strict scrutiny,”
said David Zhang, Euromonitor’s insights manager for Asia, noting the high likelihood of regulatory blocks in key markets.
Still, some analysts believe Indonesian regulators may adopt a more pragmatic stance. According to Niko Margaronis of BRI Danareksa Sekuritas, authorities might weigh the long-term economic value and competitive strength that could result from consolidating two major tech players.
This potential merger follows increased regulatory pushback against consolidation in Asia’s digital services sector. In March, Uber dropped a $950 million bid for Delivery Hero’s Foodpanda in Taiwan after authorities blocked the deal on anti-competition grounds.
Grab, backed by Uber, offers delivery, ride-hailing, and financial services across Southeast Asia. Its shares are up 2.4% year-to-date, with a market value of nearly $20 billion, while GoTo has seen a 20% rise in 2024, reaching a market value of about $5.8 billion, per LSEG data.
Both Grab and GoTo declined to comment on the report.