Grab faces tough competition in Indonesia despite maintaining a lead in Singapore.
Grab, which rapidly established dominance across Southeast Asia, is struggling to gain the same traction in Indonesia, the region’s largest economy. Instead, the GoTo Group remains the preferred choice among Indonesia’s 270 million residents, with many opting for Gojek for ride-hailing services and Tokopedia for e-commerce over Grab’s offerings.
According to a Bloomberg report on August 25, both companies have faced challenges since their public listings, but Grab’s losses have been more substantial than those of GoTo. Currently, GoTo boasts a market valuation of approximately US$26 billion (S$36.2 billion), nearly double Grab’s valuation of US$13.32 billion (S$18.5 billion).
Grab is set to release its second-quarter results before the markets open in the United States on Thursday, August 25, while GoTo plans to unveil its results on Tuesday, August 30.
In Singapore, Grab still holds a competitive edge; however, public sentiment towards the company has recently dipped following its decision to reduce the grace waiting time and cancellation period from five minutes to three minutes.
GoTo’s stronghold in Indonesia has allowed it to outperform Grab significantly. Bloomberg Intelligence analyst Nathan Naidu noted in a report on July 20 that GoTo’s status as a homegrown Indonesian brand, along with its synergy with Tokopedia, positions the company well to protect its food delivery market share against Grab, which leads in Southeast Asia overall.
Last year, Grab led the food delivery market in Indonesia with a 49% share compared to GoTo’s 43%, according to the second annual “Food Delivery Platforms in Southeast Asia” report by Momentum Works, published in January. However, since its initial public offering in Jakarta, GoTo’s stock has decreased by about 3%. In stark contrast, Grab’s shares have plummeted by over 60% since merging with Brad Gerstner’s Altimeter Growth Corp. in December of the previous year.
