Ride-hailing giants, Gojek and Grab, are in talks about a possible merger, a report said, citing sources.
The report, as quoted by Tech in Asia, also stated that the start-ups were still discussing their respective valuations and post-merger shareholdings.
Singapore-based Grab has told some of its investors that Gojek expects a 50-50 share while Grab wants overall control of the merged company across Southeast Asia.
“There are no plans for any sort of merger and recent media reports regarding discussions of this nature are not accurate,” Gojek spokesperson told The Jakarta Post on Tuesday.
Meanwhile, Grab has yet to comment on the report.
It is estimated that after the merger, Grab and Gojek could make US$16.7 billion in annual revenue and hit a valuation of $72 billion by 2025, which will potentially improve the prospects for an initial public offering (IPO).
According to the E-conomy SEA 2019 report by technology giant Google, Singaporean holding company Temasek and consultancy Bain & Company, ride hailing in the region has grown six fold since 2015 and is projected to reach $18 billion of gross merchandise value (GMV) in 2025.
Both app giants offer wide-ranging services aiming to fulfill everyday daily needs such as a food delivery service, package delivery and e-payment services, among other things.
Source: The Jakarta Post