GoTo’s share price is down about 3% since listing in Jakarta in April, while Grab’s share price is down more than 60% since listing.
Once the most valuable startup in Southeast Asia, Grab Holdings is lagging behind Indonesian ride-hailing app GoTo Group in terms of market capitalization.
Both of these unprofitable companies are struggling to convince investors of their earning potential after listing on the stock exchange in recent months. However, GoTo’s share price has fallen less than Grab in recent years, and the market value of the ride-hailing app from Indonesia is now around $26 billion, twice that of its rival.
For years, Grab and GoTo have been stuck in a battle to “burn money” to dominate the ride-hailing market. Grab still sees Singapore as its biggest market even as it tries to expand its reach to other countries, including Indonesia, Southeast Asia’s largest economy. Meanwhile, GoTo is leading in the ride-hailing service in its home country with more than 270 million people all knowledgeable about mobile devices and shopping on the online retail platform Tokopedia or ordering rides and ordering food through the app. by Gojek.
The growth potential of the Indonesian economy has helped GoTo surpass Grab. The company’s share price is down about 3% since listing in Jakarta in April, while Grab’s share price is down more than 60% since listing through a merger with Altimeter Growth Corp. in December 2021.
“With the advantage of Indonesia’s ‘homegrown’ brand and its partnership with Tokopedia, GoTo, Indonesia’s largest technology company, can protect its market share in the food delivery segment against rival Grab, applications that are leading in this segment in Southeast Asia. From there, GoTo can improve profitability,” said Nathan Naidu, an analyst at Bloomberg Intelligence.
While Gojek has secured a strong position in the important market of Indonesia, Grab has entered the food delivery sector. Grab holds a 49% share of the food delivery market in Indonesia in 2021, slightly more than GoTo’s 43%, according to Momentum Works.
Grab is expected to report second-quarter results before the US market opens on August 25, while GoTo will announce results on August 30.