Grab and Go-Jek Indonesian Rivalry Set to Enter Other Southeast Asian Countries
Ride-hailing firm, Go-Jek plans to expand in Vietnam, Singapore, Thailand and Philippines with $2 billion of funding it is seeking from its investors. Earlier this year, Go-Jek raised $1.5 billion from its investors. Grab too has raised $2 billion this year and plans to raise another $1 billion before the year ends.
Grab is using its funds to follow Go-Jek’s strategy and include related mobile dependent businesses – such as food-delivery and courier services – in its push to gain share in Indonesia. Fearing losing the Indonesian battle, Go-Jek is keeping other options open. This is the right move by Go-Jek as ride-hailing is an industry with low market entry and exit costs. Expansion in other countries should also increase Go-Jek’s prospects, if there is any chance of merger/acquisition by Grab. - Aman Madhok
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Sep 21, 2018
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