Uber's IPO flop bodes ill for Grab and Go-Jek

Southeast Asian 'decacorns' must show path to profitability, say experts

Valuations for Grab and Go-Jek have ballooned above $10 billion over the past year, but both companies have to show they can be profitable. (Photo by Ken Kobayashi)

KENTARO IWAMOTO, Nikkei staff writer

May 15, 2019 15:56 JST

SINGAPORE/JAKARTA -- Southeast Asian ride-hailers Grab and Go-Jek must show a path to profitability before going public, say experts, with investors more wary after lackluster IPOs from Uber Technologies and Lyft.

Valuations for Grab and Go-Jek have ballooned above $10 billion over the past year, attracting a host of blue-chip backers including Japan's SoftBank Group, Toyota Motor and Microsoft, as well as Google, Tencent Holdings and JD.com.