Arket research firm Momentum Works predicts that Tokopedia’s acquisition by ByteDance-owned TikTok could pave the way for further merger talks between its former parent company, homegrown tech giant GoTo, and rivals. He said that
Momentum Works CEO Jangang Lee said in a press conference on Wednesday that GoTo’s ride-hailing unit Gojek is under pressure from rival Grab Indonesia.
He said that unless the company can maintain good parameters in its ride-hailing service, GoTo may reconsider its strategy against Gojek and choose a similar approach for Tokopedia.
In the case of a sale, he believes Singapore-based Grab and even TikTok could be potential buyers.
Alternatively, he said, GoTo could choose to sell the heavily loss-making Tokopedia, which has been merged with TikTok’s e-commerce arm, and focus its excess resources on its remaining services.
However, GoTo CEO Patrick Warjo said on January 25 that the company is hopeful about the prospects for on-demand services and will not follow Tokopedia’s path.
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After the sale of Tokopedia, the group can focus on its other core businesses, namely on-demand services through Gojek and financial services through GoTo Financial, he said.