Indonesian tech giants reported to merge to create e-commerce company

• Apr 17, 2021

Two Indonesian tech companies –ride-hailing business Gojek and e-commerce firm Tokopedia – are reportedly putting the finishing touches on an $18 billion merger which could shake up the e-commerce industry in Southeast Asia.

The joint firm will reportedly be called “GoTo”, pronounced “go to”.

Gojek is ride-hailing service Grab’s main rival in Indonesia and also offers a digital payment system, while Tokopedia comprises of an entire online marketplace similar to that of Alibaba’s TaoBao in China.

According to media reports, Gojek is backed by Tencent and Facebook while Tokopedia counts Alibaba as an investor. Shared investors include Sequoia Capital and Google.

The merging of the two tech companies could create ramifications for Southeast Asia’s rapidly growing digital marketplace.

Cambodia’s e-commerce industry it in its infancy. Access to the TaoBao marketplace is achievable through a middleman, while AliExpress delivers directly to Cambodia, but has more expensive prices.

Locally, Kokopon sells Cambodian-made products – mostly food – on a digital marketplace which delivers throughout the country. Similarly Khmum E-shop offers locally made and international products on a digital marketplace.

It remains to be seen if Cambodia would be a target market for GoTo, but reports have said the company would expand to several Southeast Asian countries.

According to tech media outlet The Information, the merger could be completed by the end of this month.

Tech Wire Asia reported that GoTo “will provide services spanning rides, e-commerce, food delivery, payments and logistics”.

Source: https://www.khmertimeskh.com/50839818/indonesian-tech-giants-reported-to-merge-to-create-e-commerce-company/