Shares of Southeast Asian ride-hailing companies GoTo and Grab have plunged amid increasing pressure from driver protests and regulatory scrutiny, highlighting growing challenges in the sector. GoTo, Indonesia’s second-largest ride-hailing firm, has seen its shares fall sharply after the Indonesian stock market lowered its floor price earlier this month. The stock closed at Rp27, down over 90 percent from its 2022 peak above Rp390. Meanwhile, Grab, based in Singapore and listed on Nasdaq, has experienced a roughly 50 percent decline in share value over the past year.
Both companies dominate Southeast Asia's ride-hailing market, controlling approximately 85 percent of the sector, according to Euromonitor International. Grab generated $3.37 billion in revenue last year, while GoTo reported $1 billion. Despite being profitable, both firms face increasing operational pressures amid driver dissatisfaction and rising costs. Fuel price surges linked to the ongoing conflict in the Middle East have intensified the financial strain on their drivers, contributing to protests in countries including Indonesia, Vietnam, Thailand, and the Philippines.
Analysts note that drivers, considered "partners" rather than employees by these companies, have grown more vocal in demanding fairer compensation. In Indonesia, protests led authorities to cap commissions for two-wheeler drivers at 8 percent in July—a significant reduction from the previous 20 percent limit. Jakarta is also planning regulations on fees for delivery services.
In Vietnam, where commission rates remain unregulated, many Grab drivers staged temporary boycotts in response to deductions they claimed could reach up to 50 percent of passenger fares. The National Competition Commission subsequently ordered Grab and its competitors to disclose their pricing and fee policies to promote transparency and balance among platforms, drivers, and consumers.
Driver representatives have called for more comprehensive protections and rights, including negotiation power over fares and working conditions. Pham Mi Sen, deputy chair of the Ho Chi Minh City motorcycle taxi drivers’ association, stressed that companies’ classification of drivers as partners allows them to avoid traditional employer obligations, leaving drivers vulnerable.
Other regional governments are pursuing similar regulatory measures. Thailand announced plans in August to introduce rules controlling commissions for ride-hailing and on-demand delivery services. Conversely, Singapore’s transport minister Jeffrey Sio recently stated that the government would not impose commission caps, emphasizing market openness and competition as key to improving driver livelihoods.
In response to these challenges, both GoTo and Grab are diversifying their businesses. Grab, which recorded its first profitable year in 2025, has expanded its financial services arm and acquired Foodpanda in Taiwan, marking its first significant step outside Southeast Asia. It also struck a $1.49 billion deal for a controlling stake in Atome Financial, a buy-now-pay-later provider. GoTo is similarly betting on growth in consumer lending; financial services profits recently surpassed those from its ride-hailing and delivery divisions for the first time.
While both companies have discussed a possible merger in recent years, sources say regulatory uncertainty in Indonesia has stalled negotiations. Grab has committed to balancing affordable services for users with “fair, long-term earning opportunities” for drivers and has offered temporary support to offset fuel price increases. GoTo expressed support for Indonesia’s commission limits and said it is assisting drivers with rising living costs as it seeks to build a sustainable ecosystem for all stakeholders.