AirAsia's Gojek deal turbo-charges its 'Super App' goal: Tony Fernandes
Malaysian budget carrier AirAsia's acquisition of Gojek's established Thailand arm "bodes well" for its ambitions of becoming the Super App of choice in South-east Asia, said AirAsia Group chief executive Tony Fernandes.
"Our aim is to be everywhere in Asean. The deal with Gojek has significantly accelerated the expansion of our plan," he said in response to questions by The Business Times.
On Wednesday, AirAsia announced it will buy Indonesian ride-hailing and payment firm Gojek's Thailand business in a stock swap, giving Gojek a 4.76 per cent stake in the airline's lifestyle platform.
In return, AirAsia will acquire Gojek's business in return for US$50 million worth of shares in AirAsia's Super App. This would value the division at around US$1 billion, higher than its current market value of US$868 million
This sheds some light on how both companies will benefit from the deal, with AirAsia utilising its brand and presence in Thailand with the foundation that Gojek has already built on the ground. Gojek, meanwhile, will focus on their key markets in Singapore and Vietnam.
At a separate virtual press conference this week, Mr Fernandes revealed that Gojek's investment is valued at US$40 million, with GoPay's stake at US$10 million.
Gojek's app in Thailand will run until the end of this month, while AirAsia expects to launch its much-awaited Super App in early August.
Gojek has endured a rather weak run in Thailand compared to its competitors such as Grab and Foodpanda, and has recorded losses for the past two years in the country.
AirAsia's acquisition has raised some eyebrows but Mr Fernandes said he was sufficiently impressed by the Jakarta-based Gojek that it was a good deal.
"Gojek is one of the biggest and smartest tech unicorns in Southeast Asia, and one that I respect the most. All the innovations they have done, others have emulated," he told BT.
"They were the first to take on innovation, food delivery, knocking on the mom-and-pop stores. They were the first to launch ride-hailing with motorbikes in this region. They took the idea from WeChat and 'Asean-ised' it."
The Covid-19 pandemic, which has hit the regional and global travel industry hard over the past 18 months or so, saw AirAsia rebrand their website and app, turning it from a travel-centric site into a Super App that caters to lifestyle services, logistics and fintech, among others.
Analytic firm MIDF Investment was among those critical of AirAsia's Gojek deal, stating in a research note that the airline's digital segment is not yet self-sustaining, especially in the near term.
"The company's survival is dependent on the success of the group's fundraising activities and reviving its core business - airlines," said MIDF.
Mr Fernandes, however, recalled how some naysayers in the past wrote AirAsia off when it first began its digital journey, "just like how they did not believe in us when I started (the airline) 19 years ago)".
"Regardless of what analysts write in their reports, most importantly, the industry leader Gojek has recognised our plan and decided to join hands. That should speak for itself," he said.
"We have a competitive edge, such as a great brand and rich, vast data. We may not become the biggest company in a short time, but we will be the most profitable," he added.
READ MORE: Can AirAsia succeed where Gojek lagged in Thailand?
