From Start to Sustainable
After over 10 years in business, GoTo Group’s on-demand segment is nearing profitability, with mobility and food delivery units on track to hit positive EBITDA in Q4.
The segment narrowed losses 95% in Q3 to just $3.1 million. Initiatives like cheaper GoCar options and proprietary tech are reducing reliance on rider incentives and subsidies.
“We’re strategically managing and reducing our cost base while defending our market-leading position,” said transport chief Shobhit Singhal.
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A Decade in the Making
Regional rival Grab turned profitable faster, but Gojek claims expanded services tailored for value-conscious riders can unlock 50-60% more users without discounts.
Beyond subsidies, GoTo cut Q3 marketing spending by 36% overall. Aligning with group aims, Gojek hopes to cement adjusted profitability this quarter.
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From Inception to the Verge of Profitability
The targets come after GoTo slashed 1,900 jobs amid cancelled IPO plans. Now, the company is expanding in Indonesia’s overlooked smaller cities – mirroring moves by other units to penetrate overlooked growth avenues.
If the on-demand vertical sustains momentum, it can spearhead a comeback story for this diversified, earnings-hungry Indonesian giant.
Cost-Cutting While Expanding in Smaller Indonesian Cities