Gojek’s Thai business sells itself to AirAsia, and the golden cicada escapes from the shell?

With ideals, it’s not salted fish

After Indonesia’s Gojek and Tokopedia merged, they drew an Indonesian pie for investors. How to deal with Gojek’s tepid overseas business has also attracted attention from the outside world. 

At noon today, AirAsia was rumored to have reached an agreement with Indonesian unicorn Gojek to acquire its business in Thailand for US$50 million. This is likely to involve the issue of how Gojek will relocate in various regions after the merger with Tokopedia. From the side, we can also see that AirAsia is further increasing its efforts to promote digital business.

In the afternoon, Gojek held a Townhall, CEO Kevin Aluwi the announcement, noting Gojek will focus effort worthwhile investment into Singapore and Vietnam – and these two markets have a firm commitment.

Gojek's Thai business sells itself to AirAsia, and the golden cicada escapes from the shell?

Gojek Escapes the Golden Cicada

Gojek is one of the few Internet companies in Indonesia that has broken out of the country. It has successively entered markets such as Vietnam, Singapore, and Thailand from 2018 to 2019 (Malaysia did not enter-the Philippines acquired a local payment company after the license application was rejected).

From the perspective of its business internationalization strategy, it is obvious that Gojek does not want to be king on a hill, but rather wants to compete with regional players such as Grab.

It just backfired. In the past few years, Gojek is still spinning around the rocks in other countries, and he has not found a strategy that suits him to replicate his success in Indonesia that year. Of course, some people say that Gojek deliberately interfered with Grab in overseas markets-but we think this is unreliable, and Gojek’s management team should not be stupid enough to do such a thankless thing. 

In the Thai market, Gojek also faces fierce competition from rivals such as Grab, Foodpanda, and Lineman. In the Southeast Asian food delivery platform report launched by Momentum earlier this year, Gojek’s food delivery share in Thailand only accounts for 7%, which is far behind other competitors. .

Gojek's Thai business sells itself to AirAsia, and the golden cicada escapes from the shell?

According to the data in the hands of friends in the market, Gojek has about 40,000 riders and 40,000 cooperative merchants in Thailand, but the active cooperative merchants are only a quarter of the registered merchants. In other words, the volume is small.

A friend of Moteng’s own community app Impulso posted anonymously a photo of Shopee delivering food in Thailand. It is foreseeable that competition in the Thai food delivery market will become more intense in the future, and the merger of Gojek and Tokopedia will undoubtedly give Gojek the opportunity and excuse to get out of the Thai market (no need to tell a regional story).

Gojek's Thai business sells itself to AirAsia, and the golden cicada escapes from the shell?

The transaction will be carried out in the form of equity swaps. Gojek will hold shares in AirAsia’s super application business, and AirAsia will take over Gojek’s Thai operations. This can be regarded as a trade-off, in order to avoid head-on, they take a play that they think is relatively safe.

Gojek's Thai business sells itself to AirAsia, and the golden cicada escapes from the shell?

Former entrepreneurial idol

Tony AirAsia in 2020 set a number of strategic transformation of the word, the digital footprint of its plan include: takeaway, logistics, mobile payment, streaming media and so on.

Gojek's Thai business sells itself to AirAsia, and the golden cicada escapes from the shell?

And this year has attracted some investment, including a financing of 82 million US dollars obtained in March this year. Two new shareholders were introduced, namely David Bonderman, the founder and chairman of TGP capital, and Aimia Inc, a Canadian investment company, a shareholder of Aeromexico.

Although this is a bit far away from Tony’s goal of raising US$300 million for digital business, AirAsia has recently been recruiting digital talents in Southeast Asia frantically-many of Moteng’s friends have been contacted by their headhunters.

Although AirAsia feels like drawing a big pie, compared to other bankrupt airlines, the story of actively seeking change and embracing digital is easier to be accepted by investors and the market.

According to the feedback of Momentum’s colleagues in Malaysia, some friends around me have started to use AirAsia’s takeaway service. As AirAsia has repeatedly emphasized the 75 million members, the specific amount of moisture remains to be discussed.

With the recent Shopee, Grab and other Internet companies fast, and as a former Dongnan -a- industry idol -Tony Fernandes feels a bit after being photographed the waves on the beach, and even he had presided over the proud reality show – Apprentice It was also imitated by One Champion’s Chatri Sityodtong.

Gojek's Thai business sells itself to AirAsia, and the golden cicada escapes from the shell?

Fernandes’s feelings may be similar to that of his good friend Richard Buddy. Both of them entered the aviation industry from the recording industry.

Virgin Atlantic, which is owned by the bad monk, filed for bankruptcy protection last year. Even Virgin Galactic, which is proud to be listed on SPAC, was almost surpassed by Bei’s bald blue origin in the space travel challenge. Forcing the monk to make arrangements for space launch on July 11 in advance-friends who hold Virgin Galactic stocks can consider hedging. 

Gojek's Thai business sells itself to AirAsia, and the golden cicada escapes from the shell?

(Not bad monk lost the bet, and showed up in the AirAsia flight attendant uniform)

However, it must be admitted that Tony Fernandes’s judgment on the direction of AirAsia’s transformation is in line with the current trend of digitalization in Southeast Asia . It is just a question mark how this road will go in the end.

What is the prospect of the acquisition?

For AirAsia, whether it is an overall acquisition or a stock swap, entering the Thai market through this approach can be seen as a good start. But the Thai market competition is very intense, both as Grab, Shopee head of a player such as the Internet, as well as local Thai rooted LineMan, takeaway industry veteran (just a bunch of airborne executives Korea) FoodPanda and targeting areas although do take-away The Thai local consortiums who don’t get up but will make you a headache.

For AirAsia, the future will be a tough battle-but it doesn’t matter if it can’t be done, after all, it didn’t spend real money to acquire this business. For Gojek, perhaps the swap of less than 5% of the equity will be Gojek’s last thought in Thailand.

After all, ideals are not salted fish. 

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/gojeks-thai-business-sells-itself-to-airasia-and-the-golden-cicada-escapes-from-the-shell/
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