Gojek to exit Vietnam

It said the decision, made by its parent company GoTo after assessing its market presence in Vietnam, aims to strengthen business operations and aligns with the company's long-term growth strategy.

"We will provide the necessary support to all affected parties and comply with current regulations and laws throughout this transition."

Gojek was founded in 2010 with a focus on delivery and ride-hailing services, and its app was launched in January 2015 in Indonesia.

Since then it has grown to become that country's leading on-demand service platform.

It entered Vietnam in 2018 as GoViet, which merged with the Gojek brand in 2020.

It offers two-wheel (GoRide) and car (GoCar) rides, food delivery (GoFood) and parcel delivery (GoSend), and operates in HCMC and Hanoi and Binh Duong and Dong Nai provinces.

According to market research company Mordor Intelligence, Vietnam's ride-hailing market is expected to be worth US$880 million in 2024 and grow to $2.16 billion by 2029.

Another market research company, Q&Me, found that 42% of users in Vietnam favor Grab for motorbike rides followed by Be with 32% and Xanh SM with 19%. Only 7% said they frequently use Gojek.

With the Vietnamese operations accounting for less than 1% of GoTo's gross transactions in the second quarter of this year, the exit from the market is expected to have little impact on its financial situation, The Business Times reported.

Gojek previously pulled out of Thailand in 2021 and is focusing on its home market and Singapore.

In Indonesia, Gojek's gross transaction value increased by 18% year-on-year in the second quarter of this year while its number of completed orders rose 24% to reach record levels. It also saw a 3 percentage point increase in market share in Singapore.