GoTo Pivots to Fintech Amid Market Share Loss

GoTo, once a leading tech company in Indonesia, is now focusing on fintech to revitalize its superapp. The company, which started as Gojek in 2010, initially expanded its services to include ride-hailing, food delivery, and other on-demand services. However, it faced stiff competition from Grab, which acquired Uber's Southeast Asia operations in 2018 and expanded rapidly across the region.

GoTo's strategy of focusing on its home market in Indonesia, while Grab expanded regionally, led to a significant market share loss for GoTo. Grab's horizontal expansion through strategic acquisitions and fintech infrastructure allowed it to dominate the on-demand services sector in Southeast Asia. In contrast, GoTo's vertical depth strategy in Indonesia, while successful initially, could not compete with Grab's regional dominance.

In 2021, GoTo merged with Tokopedia, Indonesia's leading e-commerce company, to form Indonesia's biggest tech startup. The merger aimed to leverage both companies' user bases for GoTo's financial services, which offer higher margins. However, the entry of TikTok Shop in Indonesia in 2021 posed significant challenges, as TikTok's financial resources and social commerce model changed the e-commerce landscape.

GoTo's pivot to fintech comes at a time when the company is focusing solely on the Indonesian market. The fintech arm, which includes consumer loans and digital banking services, is seen as a long-term play for GoTo. The company's consumer loan book grew significantly in the first quarter of 2025, and its financial services are positive on an adjusted Ebitda basis. GoTo's advantage in the fintech space is its tech-first approach, which allows it to offer smartphone-friendly services to Indonesia's unbanked and underbanked population.

However, the fintech bet comes with challenges. Any potential deal involving Gojek is still uncertain, and it's unclear if such a deal would affect operations with TikTok through Tokopedia. The middle-income squeeze in Indonesia amid rising costs and a stagnant job market also poses a challenge for GoTo's fintech ambitions. Despite these challenges, GoTo is preparing for a slimmed-down fintech future, where the rewards may be substantially higher than in the ride-hailing space.

GoTo's focus on fintech is a strategic move to drive future growth, as the company faces stiff competition in the on-demand services sector. The fintech arm, with its higher margins and potential for growth, is seen as a key driver for GoTo's future success. However, the company's ability to execute this strategy and overcome the challenges it faces will determine its long-term viability in the competitive tech landscape.