Gojek withdraws from Vietnamese market, starting mid-September
VOV.VN - Gojek, Indonesia-based ride-hailing firm of its parent company GoTo, announced that it will cease operations in Vietnam after more than six years of doing business there, starting from September 16, in a move to optimize its growth.
The firm said that the decision aligns with the long-term growth strategy of GoTo, the largest technology company in Indonesia.
This decision is part of a strategy to allow the firm to focus on activities that can have a significant and sustainable impact on the market, in line with GoTo’s commitment to achieving long-term sustainable business growth, GoTo said.
Gojek was founded in 2010, initially focusing on parcel delivery (GoSend) and ride-hailing (GoBike) services before launching its app in January 2015 in Indonesia.
Gojek then grew into the leading on-demand service platform in the country and expanded its operations to Vietnam in August 2018 under the name GoViet. Just two months later, the firm launched its online food delivery service, GoFood.
In August 2020, the GoViet brand was officially phased out, and the firm was renamed Gojek Vietnam. It operated in Ho Chi Minh City, Hanoi, Binh Duong, and Dong Nai before halting its operations.
Among ride-hailing brands in Vietnam, Grab makes up 42% of the market share, followed by Be, Xanh SM and Gojeck with their respective market shares of 32%, 19%, and 7%.
According to Business Times (Singapore), Gojek Vietnam accounted for less than 1% of GoTo’s total transaction value in Q2. Therefore, the withdrawal from Vietnam will not impact the parent company’s financial situation.
