AirAsia partners with Indonesian ride-hailing service Gojek to enter Thailand market

AirAsia is looking to grab a bigger share of Thailand’s food delivery market as Gojek shifts its focus to Vietnam and Singapore .

AirAsia is finalizing the acquisition of Indonesian unicorn Gojek 's business in Thailand, people familiar with the matter said . The deal with Gojek, one of Southeast Asia's "super apps" , is the first step in AirAsia's ambition to grow its digital business .

A Malaysian government source said the country's regulator has approved a proposed takeover by AirAsia and the announcement could be soon but could still be delayed.

Another person familiar with the matter said the deal would involve a share swap between Gojek and AirAsia, with Gojek taking a stake in AirAsia's super app business in exchange for its Thailand operations.

AirAsia has been working on building its own "super app", which includes the company's non-airline businesses . It already offers services such as food and fresh food delivery, courier services, e-commerce platforms and payment gateways , but currently lacks a ride-hailing service compared to other big players in the market .

In response, some people said, "In this way, AirAsia will enter the ride-hailing business and expand its food delivery business in Malaysia and Singapore . "

AirAsia has been present in the Thai aviation industry through Thai AirAsia since 2003. Currently , the company operates in Malaysia and Singapore, while its independent cargo company Teleport operates in major countries in Southeast Asia, including Thailand.

GoTo said in May it remained "committed to all of our markets outside of Indonesia". But the combined group has lagged behind rivals in international expansion. Tokopedia operates only in Indonesia, while Gojek operates in three countries outside its home market - Vietnam, Thailand and Singapore.

One person familiar with the matter said the deal would "allow Gojek to focus its resources on its operations in Vietnam and Singapore."

Grab operates in eight Southeast Asian countries. Another "super app," Sea, has launched in six countries in the region and operates in Taiwan and four South American countries. In 2020, Gojek's services had a much lower market share in Thailand and Vietnam than Grab and Sea, according to food delivery research by Singapore-based consulting firm Momentum Works.

GrabFood captured 50% of the gross merchandise value of Thailand’s $2.8 billion food delivery market in 2020, while Foodpanda, owned by Frankfurt-listed Delivery Hero Group, and Line’s Lineman accounted for 23% and 20%, respectively. Gojek’s GoFood had a 7% market share.

Southeast Asia