The decision to cease operations in Vietnam is in line with Gojek parent company GoTo's long-term development strategy. GoTo is the largest technology firm in Indonesia.
"We've decided to terminate operations in Vietnam from September 16, 2024," the company said in an announcement.
The decision will allow the company to focus on activities that can have significant and sustainable impacts on the market, in line with GoTo’s commitment to achieve long-term sustainable business growth, a representative added.
Gojek entered Vietnam in 2018 under the brand GoViet, providing motorbike ride-hailing (GoRide), car ride-hailing (GoCar), food delivery (GoFood) and courier (GoSend) services in the country.
Before leaving Vietnam, Gojek has been operating in Ho Chi Minh City, Hanoi, Binh Duong and Dong Nai.
According to market research company Mordor Intelligence, Vietnam’s ride-hailing service market is estimated at 880 million USD in 2024 and is expected to reach 2.16 billion USD in 2029 with a compound growth rate of 19.5% in the next five years.
The Vietnamese market is fragmented with Grab, Xanh SM, Be and Gojek.
According to Singapore’s Business Times, Gojek Vietnam accounted for less than 1% of GoTo’s gross transaction value in the second quarter, so the departure from Vietnam will not affect the financial situation of the parent company.
Gojek left Thailand in 2021 and will now focus on Malaysia and Singapore.
In Indonesia, GoTo has established itself as a leading digital ecosystem in on-demand services (ODS) and financial technology through GoTo Financial. As the largest market in Southeast Asia, Indonesia still has a lot of room for growth, requiring more resources. In the second quarter of this year, Gojek’s gross transaction value and number of completed orders increased by 18% and 24% year-on-year respectively, reaching all-time highs.
In Singapore, Gojek also saw its market share increase by three percentage points in the second quarter. The Singaporean market has a high average order value and continues to be a key market for GoTo.
