The Singapore-based ride-hailing company Grab is nearing a deal to merge with its Indonesian rival Gojek, with both companies making “substantial progress” on merger terms, Bloomberg reports, whereas a merger of Grab and Gojek would mark the biggest internet merger to ever emerge from Southeast Asia.

It’s said that a major investor in Grab which is the Japanese tech conglomerate SoftBank is a driving force behind its merger talks with rival Gojek. A merger structure being considered is one where Grab’s current CEO Anthony Tan would become the chief executive officer of the combined company while Gojek’s leadership team would continue to run its side of the business in Indonesia while maintaining the Gojek brand, Bloomberg reports.

Grab and Gojek are both well-capitalized companies, with Grab having raised $10 billion in venture funding and Gojek having raised $5 billion. Both companies are strikingly similar, having both started as ride-hailing services before branching out into other areas like fintech, meal and cargo delivery, ticketing, and on-demand shopping.

Grab and Gojek operate across many countries in Southeast Asia, whereas Grab is based out of Singapore and Gojek in Indonesia. Both companies hold the title of the most valuable technology companies in their respective countries, whereas Grab is valued at $14 billion by investors and Gojek at $10 billion.

For now, deal terms haven’t been formalized and there’s possibility that a merger wouldn’t finally pull through. Nonetheless, if it does, it’ll mark one of the biggest deals to emerge from the rapidly growing Southeast Asian digital economy. 

Photo: Grab co-founder and CEO Anthony Tan by World Economic Forum is licensed under CC BY-NC-SA 2.0

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