What happened to Gojek in Vietnam?

Gojek Exits Vietnam in Deal with Be Group

Gojek, the Indonesian ride-hailing and on-demand services giant, has divested its Vietnamese operations to local rival Be Group. The acquisition, for an undisclosed sum, encompasses Gojeks ride-hailing, food delivery, and payment services in Vietnam.

Gojeks entry into the Vietnamese market in 2018 marked its first foray outside Indonesia. However, the company has struggled to gain significant market share in Vietnam, facing fierce competition from established local players like Be Group and Grab.

Market Competition and Challenges

Vietnams ride-hailing market is highly competitive, with Grab holding a dominant position. Grab, a Singapore-based company, has invested heavily in Vietnam and has a strong presence in major cities. Be Group, on the other hand, has a strong foothold in the southern region of Vietnam, particularly in Ho Chi Minh City.

Gojeks entry into the market was met with stiff resistance from both Grab and Be Group. The company faced challenges in acquiring drivers and partnering with restaurants, which hindered its growth. Additionally, Gojeks payment platform, GoPay, struggled to gain traction in Vietnam, where local payment methods such as MoMo and ZaloPay are widely used.

Strategic Shift

Gojeks decision to exit Vietnam is part of a broader strategic shift by the company. Gojek has been focusing on consolidating its position in Indonesia and expanding into new markets such as Singapore and Thailand. The company has also been investing in other areas such as e-commerce and financial services.

Post-Acquisition Outlook

With the acquisition of Gojeks Vietnam operations, Be Group strengthens its position as a leading player in the Vietnamese ride-hailing market. The company plans to integrate Gojeks services into its existing platform, offering a wider range of options to its customers.

For Gojek, the exit from Vietnam marks a setback in its international expansion plans. However, the company remains optimistic about its growth prospects in other markets. Gojek CEO Andre Soelistyo stated, We believe that this transaction will allow us to focus our resources on other strategic priorities and continue to execute our long-term growth plans.

Impact on Consumers and Drivers

The acquisition is unlikely to have a significant impact on consumers and drivers in the short term. Be Group has committed to maintaining the Gojek app and services for a period of time to ensure a smooth transition for users. However, it is possible that some users may switch to other platforms or services over time.

For drivers, the acquisition could provide opportunities for increased income and stability. Be Group has stated that it plans to offer its driver benefits and incentives to Gojek drivers who join the platform.

Conclusion

Gojeks exit from Vietnam highlights the challenges of competing in a highly competitive ride-hailing market. Despite entering the market with significant resources and brand recognition, Gojek struggled to gain a foothold against established local players. The acquisition by Be Group marks a new chapter for the Vietnamese ride-hailing industry, further consolidating the market and intensifying competition between Grab and Be Group.