Indonesia: After Acquisition, Grab and Go-jek Could Spark Oligopoly Risk

• Mar 28, 2018

TEMPO.CO, Jakarta – Grab is projected to strengthen after taking over Uber`s assets in Southeast Asia. The lower number in the market of online-based transportation service which left only Grab and Go-Jek might spark market control domination or oligopoly following the acquisition of Grab to Uber in Southeast Asia.

Institute for Development of Economics and Finance (Indef) expert Bhima Yudhistira Adhinegara stated Grab and Go-Jek might be the price determinant along with the number growing of customer in using online-based transportation service.

“Those companies might lead to predatory pricing. People should be aware of the price since they rely on the online-based transportation (known as ojek online),” Bhima told Tempo, Tuesday, March 27.

According to Bhima, both companies will further control the customer since conventional transportation has reduced. Besides, other new competitors have yet shown up because start-up company needs a huge capital to enter the market, Bhima argued.

Meanwhile, Go-Jek Chief Executive Officer Nadiem Makarim reluctant to provide statement related to Grab acquisition to Uber. “Sorry, no comment,” he said when met yesterday, in Istora Senayan, Jakarta.

Source: https://en.tempo.co/read/news/2018/03/28/056917075/After-Acquisition-Grab-and-Go-jek-Could-Spark-Oligopoly-Risk