Gojek quits Việt Nam to focus on major markets
Indonesia–based ride-hailing and delivery service app Gojek has decided to exit Việt Nam from September 16 as a step towards focusing its operations in major markets with higher growth potential.
Indonesia-based ride-hailing and delivery service app Gojek has decided to exit Việt Nam from September 16 as a step towards focusing its operations in major markets with higher growth potential.
The decision to cease operations in Việt Nam is in line with Gojek parent company GoTo's long-term development strategy. GoTo is the largest technology firm in Indonesia.
“We've decided to terminate operations in Việt Nam from September 16, 2024,” the company said in an announcement.
The decision will allow the company to focus on activities that can have significant and sustainable impacts on the market, in line with GoTo’s commitment to achieve long-term sustainable business growth, a representative added.
Gojek entered Việt Nam in 2018 under the brand GoViet, providing motorbike ride-hailing (GoRide), car ride-hailing (GoCar), food delivery (GoFood) and courier (GoSend) services in the country.
Before leaving Việt Nam, Gojek has been operating in HCM City, Hà Nội, Bình Dương and Đồng Nai.
According to market research company Mordor Intelligence, Việt Nam’s ride-hailing service market is estimated at US$880 million in 2024 and is expected to reach $2.16 billion in 2029 with a compound growth rate of 19.5 per cent in the next five years.
The Vietnamese market is fragmented with Grab, Xanh SM, Be and Gojek.
According to Singapore’s Business Times, Gojek Việt Nam accounted for less than 1 per cent of GoTo’s gross transaction value in the second quarter, so the departure from Việt Nam will not affect the financial situation of the parent company.
Gojek left Thailand in 2021 and will now focus on Malaysia and Singapore.
In Indonesia, GoTo has established itself as a leading digital ecosystem in on-demand services (ODS) and financial technology through GoTo Financial. As the largest market in Southeast Asia, Indonesia still has a lot of room for growth, requiring more resources. In the second quarter of this year, Gojek’s gross transaction value and number of completed orders increased by 18 per cent and 24 per cent year-on-year respectively, reaching all-time highs.
In Singapore, Gojek also saw its market share increase by three percentage points in the second quarter. The Singaporean market has a high average order value and continues to be a key market for GoTo. — VNS
