Singapore’s Grab, backed by Uber Technologies Inc., and Indonesia’s GoTo, whose investors include Softbank Group Corp., have both made progress toward profitability following their stock-market debuts in recent years. But competition for users has kept prices in check and squeezed margins.
Grab Holdings Ltd. and GoTo Group have accelerated merger talks and target a deal this year, seeking to end years of losses in Southeast Asia’s competitive internet market.
Discussions have intensified in recent weeks and the companies see 2025 as an opportune year for a deal, according to people familiar with the situation. The unprofitable firms — the two biggest ride-hailing providers in Southeast Asia — have held on-and-off talks for years, targeting a combination that would reduce costs and competitive pressure in the region of more than 650 million consumers.
