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News Flash:

Grab Falls Behind GoTo on Stock Markets

If you’ve been living in Indonesia for any length of time, you’ll know all about the most popular ride-hailing Apps of Grab and GoTo (GoJek). As a consumer they’re definitely convenient and certainly good value for money. But behind the scenes, things might not be so positive.

The Straits Times is reporting that Singapore’s Grab Holdings, once Southeast Asia’s most valuable start-up, is faltering behind the GoTo Group in the stock markets as it fights to gain ground on its Indonesian ride-hailing rival’s home turf.

The unprofitable companies are both struggling to convince investors of their moneymaking potential after staging their stock market debuts in recent months. Yet GoTo has fallen less than its competitor and its market value of about USD 26-billion is now twice that of its Singaporean peer. The companies are each set to report quarterly earnings.

Grab and GoTo have been locked in an expensive battle for dominance over the past several years. Grab still counts Singapore as its largest market even as it tries to expand in countries including Indonesia, Southeast Asia’s largest economy. GoTo is enjoying a leadership position in its home nation of more than 270-million people whose mobile-savvy consumers are shopping on its online-retail platform Tokopedia and ordering rides and food via its GoJek’s app.

The growth potential of Indonesia has helped GoTo outperform Grab, which became a publicly traded company through a merger with Brad Gerstner’s Altimeter Growth Corp in December. GoTo has lost about 3-percent since its initial public offering in Jakarta in April, while Grab is down more than 60-percent since combining with the US blank-cheque company.

“GoTo’s advantage as a homegrown Indonesian brand and its synergy with Tokopedia may let the country’s biggest tech firm defend food-delivery market share from Grab, the category’s leader in Southeast Asia, and improve profitability,” Mr Nathan Naidu, an analyst at Bloomberg Intelligence, said in a July 20 report.

Grab is scheduled to report second-quarter results before US markets open on Thursday, while GoTo is set to release results on Aug 30.

Sources: The Straits Times, Bloomberg

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His experience covers Marketing, Branding, Advertising, Publishing, Real Estate and Training for 5-Star Hotels and Resorts in Bali and Jakarta, which has given him a passion for the customer experience. He’s a published author and a regular contributor to local and regional publications. His interests include conservation, eco-conscious initiatives, spirituality and motorcycles. Andrzej speaks English and Indonesian.

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Director of Seven Stones Indonesia

Terje is from Norway and has been living in Indonesia for over 20-years. He first came to Indonesia as a child and after earning his degree in Business Administration from the University of Agder in Norway, he moved to Indonesia in 1993, where he has worked in leading positions in education and the fitness/ wellness industries all over Indonesia including Jakarta, Banjarmasin, Medan and Bali.

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Ridwan is one of Indonesia’s top executives with a long and illustrious career in the financial world. He holds several professional certifications including being a Certified Business Valuer (CBV) issued by the Australian Academy of Finance and Management; Broker-Dealer Representative (WPPE); and The Directorship Certification for Directors and Commissioners, issued by the Indonesian Institute of Commissioners and Directors.

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