GoTo Faces Profitability Hurdles: Regulation and Competition
GoTo Faces Speed Bumps on the Road to Profitability
Regulatory changes in Indonesia could slow earnings growth for GoTo Gojek Tokopedia, according to Maybank analyst Etta Rusdiana Putra. The government plans to reduce the commission that ride-hailing companies can collect, but details of the policy remain unclear.
Margin Squeeze and Intensifying Competition
The margin squeeze from the new policy may impact short-term operations and delay GoTo's path to profitability. Competition with Shopee and Grab is also intensifying. Maybank maintains a buy rating but cuts its target price to 80 rupiah from 120 rupiah.
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