The Southeast Asian tremendous apps GoTo and Seize have lots in frequent. Each began within the early 2010s to fill a gap within the on-demand, private-hire transport and supply service sector earlier than transferring towards the concept of a brilliant app (very like what’s seen in China), later adjusting their methods to streamline choices.
Now, after a decade or so, Seize (No. 128 on the Fortune Southeast Asia 500) has arguably risen to the highest. The agency’s on-demand providers can be found in eight of Southeast Asia’s 11 international locations, whereas GoTo’s on-demand arm, Gojek, is lagging within the sector’s market share and has exited all Southeast Asia markets for on-demand providers save for Singapore and its dwelling market, Indonesia. However GoTo (No. 266) stays formidable in Indonesia, the area’s largest market—a lot in order that the rumor mill is spinning with discuss of Seize searching for to purchase some, or practically all, of its chief competitor.
Seize has denied stories of acquisition talks. And even when GoTo had been to comply with promote its on-demand providers to Seize, the deal would seemingly should be cleared by regulators in Singapore and Indonesia. Nonetheless, the actual fact that the subject has drawn a lot consideration indicators a recognition that GoTo has misplaced the on-demand sector battle. As a substitute, the corporate is making an enormous wager on fintech to drive future development.
With “G” names, inexperienced branding, and ride-hailing roots, Seize and GoTo have lengthy been locked in rivalry. Seize’s ascendance to a place by which it will probably snap up slices of GoTo’s enterprise may be traced again to how the 2 corporations diverged from their early days, ultimately resulting in Seize’s regional enlargement and GoTo’s regional retreat to focus virtually completely on its dwelling market.
Seize, established in 2012 as MyTeksi in Malaysia, moved shortly to broaden into different Southeast Asian international locations: It entered the Philippines, Singapore, and Thailand in 2013, and Vietnam and Indonesia a 12 months later. GoTo, based in 2010 as Gojek in Indonesia, didn’t broaden into Vietnam till 2018, getting into Singapore and Thailand the next 12 months.
However it made business sense for Gojek to entrench itself in its dwelling turf first, says Daniel Seah, an assistant professor of regulation at Singapore Administration College, whose analysis areas give attention to expertise. “The size of the Indonesia market is the bee’s knees within Southeast Asia,” he provides. “Over 50% of the population is under 30 years old, and it has one of the highest mobile and internet penetrations within the region.”
Whereas Seize targeted on “horizontal expansion,” involving strategic acquisitions and fintech infrastructure, Seah explains, GoTo targeted on “vertical depth” in Indonesia’s market. Fortune Asia’s government editor Clay Chandler chronicled the battle between the rivals in 2019, with the same discovering: Seize most well-liked partnerships and joint ventures that allowed it to achieve extra markets sooner, whereas Gojek opted for partnerships by way of acquisition that enabled tighter management of its dwelling market.
Gojek’s then CEO, Nadiem Makarim, believed the super-app mannequin would win in the long term. He shortly expanded its suite of choices, creating a number of different providers like GoMassage, GoClean, and GoGlam. Though Seize additionally created its personal set of providers, it extra shortly pivoted away from them, saving prices at an earlier stage.
“The size of the Indonesia market is the bee’s knees within Southeast Asia. Over 50% of the population is under 30 years old.”
Daniel Seah, Assistant Professor of Legislation, Singapore Administration College
In 2018, Seize acquired Uber’s Southeast Asia operations, which “strengthened its regional dominance,” Seah says. “This technique consolidated its market share, early person acquisition, and cross-border model entrenchment throughout Southeast Asia.”
Etta Rusdiana Putra, an analyst at Maybank Sekuritas Indonesia, says that working with the likes of Uber allowed Seize to realize experience at a sooner tempo and be taught from the earlier failings of its companions. He additionally pointed to under-the-hood investments: “One of many key points is concerning the platform itself, that means it’s the price of maps and value per order.”
Seize constructed its personal hyperlocal mapping system, and has been utilizing it since late 2022. It has stated on earnings calls the improved effectivity and accuracy have resulted in price financial savings.
In the meantime, Gojek was steadfast in constructing out in Indonesia. It developed into GoTo in Could 2021, merging with Tokopedia, Indonesia’s main e-commerce firm, to kind Indonesia’s largest tech startup.
The rationale was maybe apparent: Collaboration would permit each Gojek and Tokopedia to faucet into their person base for GoTo’s personal monetary providers, a enterprise the place margins are increased. However whereas teaming up with an e-commerce enterprise appeared good in idea, exterior components posed vital challenges.
TikTok entered the e-commerce enterprise in Indonesia in April 2021, altering the panorama. Owned by China’s ByteDance, it’s a behemoth in contrast with GoTo when it comes to monetary assets, pumping in cash to drive shopper habits towards social commerce. Indonesia shortly turned an vital marketplace for TikTok Store, whose success prompted the Indonesian authorities to ban its operations in late 2023 when Jakarta accused TikTok Store of predatory techniques.
Fintech focus: GoTo is prioritizing the event of its monetary arm
$344.8 million
The worth of GoTo’s shopper mortgage e book for Q1 of 2025
108%
The rise in GoTo’s shopper mortgage e book from the identical interval final 12 months
Supply: GoTo earnings name
David vs. Goliath competitors apart, there’s additionally the query of whether or not transferring earlier into Singapore, a high-income nation with a small inhabitants, as a substitute of focusing closely on Indonesia, the area’s largest economic system however whose GDP per capita pales compared with Singapore’s, would have helped GoTo.
Final October, Kevin Aluwi, one in every of Gojek’s cofounders and now a enterprise companion at Lightspeed, argued that Singapore is Southeast Asia’s most vital market. He claimed that whereas the city-state had 1% of Southeast Asia’s inhabitants, it contributed 23% of Seize’s income in 2023. The nation had the very best focus of what he referred to as “power users,” customers with sufficient earnings to spend on consolation and experiences. Aluwi pointed to information compiled by the World Financial institution: The month-to-month per capita earnings of Singapore residents was $5,957 in 2023 in contrast with $388 in Indonesia.
So whereas Indonesia, with its giant inhabitants and annual common GDP development of 4.2% from 2015 to 2024 represents a beautiful market, Singapore was arguably a better marketplace for a startup targeted on offering providers requiring frequent shopper spending. Whereas Aluwi was nonetheless optimistic about Southeast Asia’s development potential, he famous it’s a various area made up of particular person economies at various phases of growth.
The pandemic ended the mid-to late-2010s straightforward enterprise fund cash for tech startups as buyers regarded for extra rapid returns on investments and exit methods. GoTo consequently wound down its suite of non-finance and non-mobility-related providers over a three-year interval, permitting it to save lots of on incentives.
Its shareholders additionally appointed Patrick Walujo, one in every of Gojek’s early backers, as CEO in 2023. His focus: turning GoTo’s funds round. In its two most up-to-date quarters, the corporate’s on-demand providers turned constructive on an adjusted earnings earlier than curiosity, taxes, depreciation, and amortization (Ebitda) foundation.
Indonesia’s TikTok Store ban additionally introduced a possibility. In early 2024, TikTok resumed its e-commerce operations within the nation after shopping for a 75.01% stake in Tokopedia value $1.5 billion. Analysts Fortune spoke to stated the deal enabled Walujo to monetize an expense-heavy platform, permitting GoTo to obtain an e-commerce service price each quarter.
Niko Margaronis, a former analysis analyst at BRI Danareksa Sekuritas, says Walujo additionally made the corporate extra “focused” after going by way of completely different leaders who emphasised development and valuations. “Under Patrick, it’s a very clear distinction of transiting from growth toward a cycle of profitability. GoTo has improved significantly and is more focused toward efficient operations,” he says.
An enormous a part of that focus is a pivot to fintech, GoTo’s long-term play no matter whether or not it retains its on-demand providers enterprise or will get purchased out by Seize or one other firm. On an October 2024 earnings name, GoTo began reporting its monetary providers outcomes forward of its on-demand providers enterprise, signposting the place the corporate’s consideration is directed.
GoTo’s shopper mortgage e book grew to five.72 trillion rupiah ($344.83 million) for the three months ended March 2025, a 108% improve from the identical interval the 12 months earlier than. Its monetary providers are additionally constructive on an adjusted Ebitda foundation.
Whereas GoTo’s on-demand providers and monetary providers segments are adjusted Ebitda constructive, analysts see an extended runway for GoTo’s fintech arm, even when it’s ranging from a decrease base. “Financial inclusion in Indonesia is relatively low,” notes Margaronis.
A 2023 ISEAS–Yusof Ishak Institute report estimates that about 80% of Indonesia’s inhabitants is both unbanked or underbanked—precisely the form of market the place a smartphone-friendly fintech supplier can thrive.
To place issues in perspective, Financial institution Mandiri, ranked No. 23 on the Fortune Southeast Asia 500, has about 41.7 million accounts for 35 million clients as of March 2025. Financial institution Central Asia, ranked No. 36, additionally has about 41 million accounts. These giant Indonesian monetary establishments have additionally entered the digital finance house, however GoTo’s benefit is that it’s a tech-first firm not slowed down by legacy banking providers and methods.
GoTo created a stand-alone GoPay app in July 2023, months after Walujo joined. It makes use of much less cell information, making it simpler to entry for these in growing cities outdoors Jakarta utilizing much less highly effective smartphones.
Many companies in Indonesia additionally settle for e-wallet funds, and GoTo’s cost platform is accepted in lots of elements of the nation. The hope, then, is for GoTo to transform these utilizing its e-wallet into banking clients, whether or not they’re drivers; micro, small, or medium e-commerce enterprises; or simply folks shopping for stuff on-line or reserving rides.
GoTo holds a 22% stake in Financial institution Jago, which permits customers to entry banking providers, comparable to financial savings accounts. Common digital banking actions would then permit GoTo to build up information that might increase its current shopper mortgage enterprise and presumably allow it to supply different providers like funding and insurance coverage merchandise. Loans generally is a income driver, as fintechs typically cost increased rates of interest to cowl the elevated dangers of lending to folks conventional banks usually don’t prolong loans to.
The fintech focus additionally comes at a time when GoTo is setting its sights solely on the Indonesian market; GoPay is a for-Indonesia play.
But the fintech wager comes with challenges. Any potential deal involving Gojek continues to be unsure; Walujo instructed the Monetary Instances in March he was open to something that enhances shareholder return in the long run.
It’s additionally unclear if any deal will have an effect on operations with TikTok by way of Tokopedia. GoPay is presently out there as a cost choice on TikTok Store, which supplies GoTo person information to construct credit score profiles. Shedding entry to that, coupled with the lack of entry to Gojek information, may make buyer acquisition costlier. And the middle-income squeeze in Indonesia amid rising prices and a stagnant job market means folks won’t even have sufficient money to save lots of.
So whereas monetary providers could be the calculated long-term wager, the query stays if the Indonesian market is prepared for such a service from a tech startup. And if it isn’t, that might make GoTo much more weak to a takeover.
On Could 7, a Reuters report quoting nameless sources stated GoTo would unload its complete worldwide unit and operations in Indonesia apart from its fast-growing finance arm. When Fortune reached out for remark, Seize declined to debate any deal-related stories, and GoTo pointed to a Could 8 submitting on the Indonesia inventory trade. In it, the corporate’s secretary, R.A. Koesoemohadiani, stated GoTo receives presents from numerous events now and again, however had not selected presents which will have been identified or obtained by the corporate on the date of disclosure. In June, Seize went additional, denying that it had been concerned in acquisition talks associated to GoTo.
As GoTo deal speculations proceed to swirl, one factor is definite: The Indonesian startup is making ready itself for a slimmed-down fintech future, a sector the place the reward could also be considerably increased than within the ride-hailing house.
This articles seems within the June/July 2025: Asia problem of Fortune with the headline “A second life for a super app.”
This story was initially featured on Fortune.com
