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GoTo exits Vietnam amid push to pursue profitability
The company explained that Vietnam is a highly fragmented market, with multiple players in transport and food delivery.
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This undated handout photo received from GoTo Group on May 17, 2021, shows a Gojek rider delivering a Tokopedia package to a customer in Jakarta. Gojek and Tokopedia, after their merger, became the largest tech company in Indonesia. (GoTo Group / AFP)
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omegrown tech giant GoTo is set to close its operations in Vietnam on Sept. 16, according to a company announcement on Wednesday, as it seeks to close the gap to achieve profitability.
The company explained that Vietnam is a highly fragmented market, with multiple players in transport and food delivery. These include regional players Grab, as well as Xanh SM, which is backed by the chairman of local conglomerate Vingroup.
The decision to exit the Vietnamese market will allow GoTo to focus on operations that can deliver “a significant market impact” in “a sustainable manner”.
It is also aligned with the company’s commitment to breaking even on adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) this year.
“[Our] Vietnam business accounted for less than 2 percent of the gross transaction value [GTV] of on-demand services in Q2 2024. Therefore, the decision will not have a detrimental impact on the company’s broader operations, overall business and financial performance,” the firm’s spokesperson RA Koesoemohadiani said in a statement.
According to the company’s financial report, international operations contributed 9.1 percent of its net revenues in 2020, despite the pandemic. However, the figure dropped significantly to just 2.7 percent last year.
After its exit from Vietnam and having left the Thai market in 2021, GoTo will only operate on-demand services in Singapore and its home base of Indonesia.
