Indonesia’s Push for Grab-GoTo Merger Driven by Politics, Analysts Say

Indonesia is pushing for a possible merger between Grab and GoTo, Southeast Asia’s two biggest ride-hailing firms, in a move that analysts say is driven more by politics than commercial consideration. With some seven million ride-hailing drivers forming a powerful and increasingly vocal workforce, President Prabowo Subianto appears keen to bring the sector under tighter control. New rules are being drafted to grant benefits such as health insurance to active drivers, effectively treating them as permanent employees. This would potentially sideline less active drivers and trigger the natural attrition of drivers, which would give the government greater oversight of the industry.