2 years of disappointment for Gojek in Vietnam: Change of brand name, 1 year of replacing two CEOs, facing the possibility of merging with Grab?

Tram Ho

Techinasia newspaper recently published an article on the future of the Gojek ride-hailing application in the Vietnamese market after 2 years of joining many storms.

Specifically, Gojek has officially entered the Vietnamese market through the GoViet brand in September 2018. The launch ceremony was attended by President Indoneisa Joko Widodo and then Gojek founder and CEO Nadiem Makarim.

 2 năm gây thất vọng của Gojek ở Việt Nam: Đổi tên thương hiệu, 1 năm thay 2 đời CEO, đứng trước khả năng sáp nhập với Grab? - Ảnh 1.

Former CEO Makarim once said: “GoViet will be closely integrated with Gojek’s world-class technology” and that the Indonesian branch will provide “long term” financial support to the joint venture in Vietnam.

Of course at that time the attack on the Vietnamese market was very meaningful to Gojek. This is the 2nd most populous country in Southeast Asia and also their first overseas market.

“GoViet will be closely integrated with Gojek’s world-class technology. The Indonesian branch will provide long-term financial support to the joint venture in Vietnam”

However, Gojek’s 2-year journey in Vietnam did not seem to meet their initial ambitions.

In just 1 year, up to 2 CEOs had to leave their seats. Uncertainty at the top has hampered the company’s efforts to “fight” against Grab.

In August, Gojek finally repositioned the brand in Vietnam and Thailand with the move to unify the Gojek brand across all markets. Co-CEOs Kevin Aluwi and Andre Soelistyo also reaffirmed their long-term commitment to the Vietnamese market. Mr. Phung Tuan Duc was appointed as the new CEO.

However, in the current situation, when Grab and Gojek are rumored to be about to merge, public opinion has raised questions about whether Gojek should continue to stay in international markets like Vietnam. or not?

The right time

In May 2018, Gojek announced that it would invest $ 500 million in four markets including Vietnam, Thailand, Singapore and the Philippines – where local companies would “self-brand and identify”.

That timing is perfect for competitors to put pressure on Grab in Vietnam.

In 2018, Grab caught up in a legal battle with traditional taxi companies in Vietnam. As a result, this company was fined 200,000 USD. In addition, the event they acquired Uber Southeast Asia has also caught the attention of the authorities.

“Grab is under a fierce attack from traditional taxi companies and it is clear that local companies like Be, FastGo and GoViet all see an opportunity to enter the market in 2018,” said an analyst. concentration.

“Among them, GoViet is the most notable name because they are strongly supported in both finance and technology from the parent group Gojek”.

At the time of the launch of GoViet in September 2018, the company claimed GoBike had occupied 35% of the market for on-demand motorbike taxi within just 3 months of testing in Ho Chi Minh City.

To become a major competitor of Grab, GoViet will have to launch a car call service. GoViet’s first CEO, Duc Nguyen (Nguyen Vu Duc) promises this service will appear at the end of 2018. But neither Duc Nguyen nor its predecessor, Christy Trang Le (Le Diep Kieu Trang). .

Meanwhile, competitors like Be and FastGo already have car call services.

The newly appointed CEO Phung Tuan Duc is expected to bring the necessary stability to Gojek Vietnam, thanks to the fact that he has been with GoViet since his first day in Vietnam as Chief Operating Officer (COO). ).

In an interview with the media, CEO Phung Tuan Duc mentioned three core services including transportation, food delivery and payment such as “Golden Triangle” in the company’s business activities. He admitted that the missing pieces of Gojek were payments and GoCar.

By September, DealstreetAsia newspaper reported that Gojek had acquired a large stake in WePay e-wallet in Vietnam, but the fact that Gojek entered the market too late. The game was too crowded.

Meanwhile, regulations in the ride-hailing market are getting tougher. Currently, Grab dominates the ride-hailing segment in Vietnam, accounting for about 75% of the market share.

TechinAsia’s source said that despite Covid-19, Grab’s ride-hailing service still generates higher revenue and profit margin than motorbike service. However, the ride-hailing service is becoming more competitive and requires more capital to face legal hurdles and support drivers and users.

That is not to mention the 4-wheel drive market not only Grab, but also many other names.

Notable to mention is Be, EMDDI.

Tan Nguyen, Chief Technology Officer of EMDDI says that the platform currently manages 30,000 taxis for more than 90 taxi companies in over 40 cities and provinces.

Be has a network of 100,000 drivers with 350,000 requests per day in 10 provinces. Be was born in 2018 and has also undergone top-level personnel change.

What is the future?

With rumors surrounding the Grab – Gojek merger, Be Group CEO Nguyen Hoang Phuong told TechinAsia: “When Grab buys Uber Vietnam, the market is still big enough for Be to join. We believe that competition is competitive.” Be Group is not entirely in a ‘burning money’ state but will focus on spending on the necessary resources.

In the food delivery segment, GoFood also faced many competitors – units willing to spend tons of money to win in Vietnam.

The market now includes Baemin – a company backed by the Korean unicorn Woowa Brothers. The food delivery app is actively competing with Grab and Now.

 2 năm gây thất vọng của Gojek ở Việt Nam: Đổi tên thương hiệu, 1 năm thay 2 đời CEO, đứng trước khả năng sáp nhập với Grab? - Ảnh 2.

The potential for a merger of Grab and Gojek is not clear, but investors believe that will reduce burning money in both companies.

According to Bloomberg, it is likely that Grab will only buy Gojek’s Indonesian operations, which means that Gojek’s overseas operations will not cease.

Needless to say, Gojek’s business is somewhat different from Grab’s. They participate in many other areas including GoPlay, GoStore …

There is also a possibility that both Grab and Gojek will withdraw from foreign markets together in a deal that does not interfere with each other’s operations.

Even so right now it is too early to draw a conclusion!

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Source : Genk