Log in
Log in
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     
Sign up
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     
  1. Homepage
  2. Equities
  3. Indonesia
  4. INDONESIA STOCK EXCHANGE
  5. PT GoTo Gojek Tokopedia Tbk
  6. News
  7. Summary
    GOTO   ID1000166903

PT GOTO GOJEK TOKOPEDIA TBK

(GOTO)
  Report
End-of-day quote INDONESIA STOCK EXCHANGE  -  2022-12-07
100.00 IDR   -6.54%
05:25aStocks rise on China optimism ahead of c.bank decisions
RE
03:34aAlētheia Capital Starts GoTo Gojek Tokopedia at Sell With IDR80 Price Target
MT
12/08GoTo Gojek's Shares Hit Lower Limit Despite CFO's Assurance of Corporate Health
DJ
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisionsFunds 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Exclusive-Grab sees no big layoffs despite weak market

09/25/2022 | 12:04am EST
EXCLUSIVE-Grab sees no big layoffs despite weak market

SINGAPORE (Reuters) - Grab, Southeast Asia's biggest ride-hailing and food delivery firm, does not envisage having to undertake mass layoffs as some rivals have done, and is selectively hiring, while reining in its financial service ambitions.

Chief Operating Officer Alex Hungate said that earlier in the year, Grab had been worried about a global recession and was "very careful and judicious about any hiring", and as a result, it had not got to the "desperate" point of a hiring freeze or mass layoffs.

"Around mid-year, we did some kind of specific reorganisations, but I know other companies have been doing mass layoffs, so we don't see ourselves in that category," Hungate, 56, told Reuters in his first interview since joining Singapore-based Grab Holdings Ltd in January.

The company was hiring for roles in data science, mapping technology and other specialised areas though every hire was a much bigger decision than it used to be, he said.

"You want to make sure that we're conserving capital. The hurdle for making a hire has definitely been raised."

Decade-old Grab, a household name in Southeast Asia, had about 8,800 staff at the end of 2021. Like its rivals, it has benefited from a boom in food services during the COVID-19 pandemic, while ride-hailing suffered.

As economies open up, food delivery demand is softening while ride-hailing has yet to fully recover. Tech valuations have also fallen dramatically and inflation, slower growth and rising interest rates have emerged as risks.

In recent weeks, Southeast Asia's largest e-commerce firm Shopee cut jobs in various countries and shut some overseas operations after parent Sea reported widening losses and scrapped its annual e-commerce forecast.

Hungate, a veteran of the financial services, logistics and food sectors, has spearheaded a push away from low-margin business lines as Grab races to turn profitable.

Second-quarter loss narrowed to $572 million from $801 million a year earlier. But last month, it cut its gross merchandise volume outlook for the year, blaming a strong dollar and ebbing food delivery demand.

Last month, Grab said it was shutting dozens of so-called dark stores - distribution hubs for on-demand groceries and slowing the roll-out of its "cloud kitchen" centralised facilities for deliveries.

"The other area where we've really tightened our strategic intent is in financial services where we were growing payments, wallets and non-bank financial lending quite significantly off-platform and on our platform," said Hungate.

Grab reorganised its fintech unit this year to focus on more lucrative areas and Reuters reported on the exit of some senior executives.

'HIGHER MARGINS'

Grab is now mainly focussing on selling its lending products and insurance on its platform to merchants and drivers who often repay from their income streams on the platform.

"As we make this shift, the business mix will move towards higher margins," said Hungate.

Grab, which operates in 480 cities in eight countries, has more than five million registered drivers and more than two million merchants on its platform.

It caught global attention in 2018 when it acquired Uber's Southeast Asian business after a costly five-year battle.

Grab is betting on growing financial services by offering banking and other products with partner Singapore Telecommunications in key markets.

It listed on the Nasdaq in December after a record $40 billion merger with a blank-check company.

Hungate said it was "good timing" for the company to look again at how it spends money, given the increased scrutiny of finances and the need to respond to shareholders.

"Maybe we were lucky in a sense that the discipline of being a public company came at just the right time," he said, adding that Grab's $7.7 billion cash liquidity meant it was one of the best capitalised industry players in Southeast Asia.

Grab's shares have tumbled about 60% this year to give it a market value of $10.6 billion.

Reuters reported last month that Grab's Indonesian rival GoTo was seeking to raise about $1 billion through a convertible bond issue.

Hungate said Grab would provide details of its progress towards profitability and other metrics at its first investor day on Tuesday.

(Reporting by Anshuman Daga; Editing by Robert Birsel)

By Anshuman Daga and Xinghui Kok


ę Reuters 2022
Stocks mentioned in the article
ChangeLast1st jan.
GRAB HOLDINGS LIMITED 4.08% 3.06 Delayed Quote.-57.08%
MSCI SINGAPORE (GDTR) 0.76% 5627.79 Real-time Quote.-9.94%
NASDAQ COMPOSITE 1.13% 11082 Real-time Quote.-29.17%
PT GOTO GOJEK TOKOPEDIA TBK -6.54% 100 End-of-day quote.0.00%
SINGAPORE TELECOMMUNICATIONS LIMITED -0.38% 2.63 Delayed Quote.13.79%
All news about PT GOTO GOJEK TOKOPEDIA TBK
05:25aStocks rise on China optimism ahead of c.bank decisions
RE
03:34aAlētheia Capital Starts GoTo Gojek Tokopedia at Sell With IDR80 Price Target
MT
12/08GoTo Gojek's Shares Hit Lower Limit Despite CFO's Assurance of Corporate Health
DJ
12/08Indonesia plans to list two Pertamina units next year
RE
11/30Indonesia's GoTo shares drop 7% after some shareholders forgo secondary offering
RE
11/24Singapore's gig workers to get work injury, pension coverage
RE
11/21GoTo Shares Drop as Loss Widens
DJ
11/21Transcript : PT GoTo Gojek Tokopedia Tbk, Q3 2022 Earnings Call, Nov 21, 2022
CI
11/21Indonesia's GoTo posts narrower Q3 loss, sees further improvement on cost cuts
RE
11/21PT GoTo Gojek Tokopedia Tbk Reports Earnings Results for the Nine Months Ended Septembe..
CI
More news
Analyst Recommendations on PT GOTO GOJEK TOKOPEDIA TBK
More recommendations
Financials
Sales 2022 10 130 B 0,65 B 0,65 B
Net income 2022 -25 066 B -1,61 B -1,61 B
Net cash 2022 26 524 B 1,70 B 1,70 B
P/E ratio 2022 -4,60x
Yield 2022 -
Capitalization 102 866 B 6 597 M 6 597 M
EV / Sales 2022 7,54x
EV / Sales 2023 4,79x
Nbr of Employees 10 541
Free-Float 54,1%
Chart PT GOTO GOJEK TOKOPEDIA TBK
Duration : Period :
PT GoTo Gojek Tokopedia Tbk Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends PT GOTO GOJEK TOKOPEDIA TBK
Short TermMid-TermLong Term
TrendsBearishBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 17
Last Close Price 100,00 IDR
Average target price 262,47 IDR
Spread / Average Target 162%
EPS Revisions
Managers and Directors
Andre A. Soelistyo President Director
Jacky Lo Chief Financial Officer & Director
Garibaldi Thohir President Commissioner
Robert Holmes Swan Independent Commissioner
Dirk van den Berghen Independent Non-Executive Commissioner
Sector and Competitors
1st jan.Capi. (M$)
PT GOTO GOJEK TOKOPEDIA TBK0.00%6 597
TENCENT HOLDINGS LIMITED-30.52%383 843
NETFLIX, INC.-48.80%138 072
PROSUS N.V.-12.42%90 160
AIRBNB, INC.-43.04%60 044
UBER TECHNOLOGIES, INC.-36.92%52 752