Up for a Grab? Gojek after Nadiem Makarim
Gojek claims its balanced power structure is unique, but its arch-rival Grab is always seeking weaknesses to exploit
If you thought the battle between Southeast Asia’s ride-hailing leader Grab and its Indonesia-headquartered foe Gojek couldn’t get any more intense, it has.
Gojek pushed its business across Southeast Asia last year, and Singapore-based Grab has spent the last two years trying to unseat its rival in its native Indonesia. The fundraising battle has gone stratospheric with both sides raising billions; Grab’s last round was $6.5 billion and its investors span SoftBank, Toyota and Microsoft, while Gojek is in the process of completing a round of at least $2 billion from a cast of backers that include Google, Tencent and Mitsubishi.
Then, in an unexpected curveball, Gojek’s founder and CEO Nadiem Makarim announced his departure from the company. His exit is a win for Indonesia, since Makarim quit the job to become minister of education and culture in President Joko “Jokowi” Widodo’s cabinet.
The unusual move makes Makarim, only 35 years old, the youngest minister Indonesia has ever seen. A more classic exit for contemporary startup founders would have come after a milestone such as an acquisition or IPO. Or involuntarily after a major misstep. Neither scenario is true in Gojek’s case.
Makarim’s sudden departure had some at Gojek’s arch nemesis, Grab, assess their own leader’s potential to follow a higher calling.
“Our biggest risk is Anthony starting a church somewhere,” an executive at Grab told The Ken under the condition of anonymity to avoid upsetting CEO Anthony Tan, who is known for his devout following of Christianity.
Tan may well become a pastor in the future, but for now his faith and efforts are entirely focused on ride-hailing and the myriad of other “super app” services that Grab invests in. Especially as it rivals Gojek in the bid to become the daily app for Southeast Asia’s 600 million-plus population.
The biggest challenge Gojek will face without Makarim at the helm is maintaining continuity and alignment inside of what has become a gargantuan structure.
How will Gojek deal with this sudden exodus and what will be Grab’s next steps form the crux of today’s story: https://the-ken.com/story/up-for-grab-gojek-after-nadiem-makarim/
This excerpt is a part of a story published on The Ken on 6th November 2019, by Nadine Frieschlad and Jon Russell.
The Ken is a subscription-based digital publication headquartered out of Bengaluru, India. It publishes one in-depth analytical story everyday about start-ups, technology, healthcare and science with an India-specific lens.
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