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Tokopedia deal opens path for other GoTo consolidation talks: Momentum Works
In the event of another divestiture, its rival Grab and TikTok might show up as the potential buyers, Momentum Works said.
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Gojek riders wait for their delivery orders at a distribution center in Surabaya, East Java, on May 17, 2021, as Gojek and Tokopedia unveiled a merger to form GoTo Group, creating the largest tech firm in the world's fourth-most populous country.
(AFP/Juni Kriswanto )
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arket research firm Momentum Works says it expects the Tokopedia acquisition by ByteDance’s TikTok may open the way for other consolidation talks between its former parent company, homegrown tech giant GoTo, and rival companies.
Momentum Works CEO Jianggan Li said during a media briefing on Wednesday that GoTo’s ride-hailing arm Gojek has been under pressure from its rival Grab Indonesia.
He said GoTo might rethink its strategy on Gojek and opt for a similar approach to Tokopedia, unless the company can maintain good parameters on its ride-hailing services.
In the event of divestiture, he believes Singapore-based Grab or even TikTok could possibly become potential buyers.
Alternatively, he said GoTo would opt to focus its excess resources on its remaining services upon jettisoning the significantly loss-making Tokopedia, which has undergone a merger with TikTok’s e-commerce arm.
However, GoTo CEO Patrick Walujo said on Jan. 25 that the company was hopeful about its on-demand services prospects and would not follow the Tokopedia path.
After Tokopedia’s divestment the group can focus on its other core business: on-demand services through Gojek, as well as its financial services through GoTo Financial, he said.
