Indonesian ride-hailing and food delivery platform GoTo Gojek is terminating its Vietnam operations beginning September 16.
The company said the move is part of its strategy to consolidate its operations and focus on areas with higher sustainable growth potential, which will help the company meet its EBITDA and break-even target.
GoTo launched in Vietnam in 2018 under the brand GoViet, which offered ride-hailing, food delivery, and courier services. In 2020, the company acquired local e-wallet WePay but was unable to roll out its services.
“We would like to express our sincere and deep gratitude to all employees, users, driver-partners, and restaurant partners who have contributed and been an integral part of Gojek’s business in Vietnam,” said the company.
“We will provide necessary support to all affected parties during this transition while complying with applicable laws and regulations.”
Outside of Vietnam, Gojek also expanded its presence in Southeast Asia. It launched in Singapore and Thailand in 2018 after securing funding from investors such as KKR, Warburg Pincus, Astra International, Google, and Temasek.
The company also had plans to enter the Philippines market but faced regulatory challenges regarding foreign ownership. Additionally, Gojek Thailand was sold to Air Asia for US$50 million in 2021.
Despite implementing thousands of job cuts and significant reductions in marketing expenditure, the company has yet to achieve positive net income, as reported by Business Times.
Patrick Walujo assumed the role of CEO last year, aiming to bring the company closer to profitability, but the company’s shares have continued to decline, remaining down by more than 80 per cent since its initial public offering in 2022.
