SINGAPORE: The CEO of Singaporean ride-hailing company Grab told employees in an internal note on Thursday (December 3) that the company is ready to make acquisitions, following a report that it is close to merging with regional rival Gojek state.
He said Grab, which has evolved from a Southeast Asian app-to-app operator offering services such as food delivery and insurance, had become profitable before overhead costs and the company had fully recovered to pre-pandemic levels.
Indonesia’s Grab and Gojek have made significant headway in talks to merge Southeast Asia’s two most valuable start-ups, Bloomberg reported Wednesday.
“There is again speculation about a deal with Gojek,” Anthony Tan, also co-founder of Grab, said in a note spotted by Reuters. “Our business momentum is good, and as with all market consolidation rumors, we are the ones who can acquire,” he said.
Grab declined comment on Tan’s post and the media report. Gojek also declined comment
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Sources familiar with the case have previously said that in recent years, major investors of the two companies have backed a merger.
However, Tan did not provide specific information about a possible deal with Gojek. “There will always be rumors and gossip. Don’t let that distract us,” he told the staff.
“Even in a difficult year like 2020, we are profitable before overheads and 100 percent recovery,” he said, adding that Grab had also become the largest food delivery company by revenue in Indonesia, where it is in fierce competition with Gojek. .
The pandemic is the first crisis for the decade-old start-up scene in Southeast Asia, from which Grab has become a household name and the most valuable company with more than $ 15 billion.
Gojek is valued at $ 10 billion.