Grab President Downplays Merger Speculation With Indonesia’s GoTo, Says Bar for a Deal Remains ‘Very High’
Grab president Alex Hungate has dismissed growing speculation that the Singapore-based super-app company may pursue a merger with Indonesian tech group GoTo, saying any potential deal would face an extremely high threshold. His remarks came during a business summit in Vietnam, where he addressed questions about consolidation in Southeast Asia’s competitive ride-hailing and digital services market.
Hungate acknowledged that industry observers have increasingly speculated about a possible tie-up between Grab and GoTo as both companies navigate rising competition, tightening financial conditions, and pressure to reduce operating costs. However, he stressed that Grab remains focused on strengthening its own operations rather than exploring large-scale mergers.
“The bar for a deal like that would be very high,” Hungate said, noting that Grab’s leadership believes the company’s independent strategy continues to deliver progress. While acknowledging that market consolidation is a recurring topic in Southeast Asia’s tech landscape, he emphasized that Grab sees no immediate need to pursue such a move.
Analysts have often pointed to overlapping business models between Grab and GoTo, both of which operate ride-hailing, food delivery, logistics, and digital payments services across major regional markets. Industry experts say a merger could create a regional giant with a dominant presence in both Singapore and Indonesia, while reducing costly competition.
But Hungate suggested that such large-scale mergers come with significant complexities, including regulatory scrutiny, integration challenges, and differing national interests. He added that Grab is instead concentrating on improving profitability and expanding its ecosystem through more targeted partnerships.
Grab has recorded steady improvements in financial performance over recent quarters as the company continues to streamline operations and enhance revenue from core services. At the summit, Hungate highlighted ongoing gains in mobility demand, digital financial services, and delivery operations, saying Grab’s path to sustainable growth remains on track.
GoTo, which was formed from the merger between Gojek and Tokopedia, has also been working to strengthen its financial position after a volatile post-listing period. While analysts say cross-border consolidation might help both companies scale more efficiently, Hungate’s comments signal that Grab is not currently considering such a deal.
Market watchers note that as Southeast Asia’s tech sector matures, mergers and alliances are likely to become more common. However, companies like Grab appear cautious, prioritizing financial discipline and operational resilience in a still-competitive landscape.
Hungate said Grab will continue evaluating strategic opportunities, but for now, the company sees greater value in building on its existing strengths rather than pursuing a mega-merger.
