GoTo further accelerates its profitability timelines

GoTo Gojek Tokopedia, the digital ecosystem in Indonesia, has further accelerated its profitability timelines. The company expects an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to become positive within the fourth quarter of 2023, according to a press release.

The group contribution margin is also set to become positive within the first quarter of 2023, accelerated in part by four quarters compared to previous guidance. The new profitability timeline, which will bring the company very close to positive operating cash flow, comes as a result of GoTo’s strategic plan based on revenue optimization, cost management and ecosystem product growth, according to the release. 

Don't miss: GoTo and TransJakarta join hands to integrate GoPay for convenient travel

The news was announced by GoTo's group CEO, Andre Soelistyo, at a townhall where the company shared its accelerated profitability strategy. 

“The success of our business has long been understood in terms of our rapid pace of growth, driven by our ability to solve problems at scale, while providing value to consumers, merchants, drivers and society as a whole. However, having achieved such scale, we must now prioritize sustainable profitability over rapid growth, while continuing the product innovation that will ensure long term value creation for GoTo and its stakeholders," he said.

GoTo's new strategic plan involves revenue optimisation which covers commission structure improvement opportunities, cost management with a top to bottom analysis of every line item and ecosystem product growth to further its product ecosystem across on-demand services, ecommerce and financial technology. 

The news comes shortly after it was announced that GoTo Gojek Tokopedia and TransJakarta, a bus rapid transit system in Jakarta, partnered to deliver a more convenient integrated public transportation experience. From January last month, GoPay was also integrated on TransJakarta’s TiJe application, enabling consumers to select it as a payment option when buying bus tickets on the TiJe application, and create a seamless and convenient cashless payments experience.

Both companies will also work towards deeper integration in 2023. This will include allowing consumers to purchase TransJakarta tickets via GoTransit - a feature on the Gojek app that helps consumers plan multimodal trips - in the near future. To date, GoTransit continues to be well-received as a convenient multimodal trip planner, by enabling easier and more efficient commutes for consumers travelling within Jakarta.

In addition to making it more convenient for consumers to make payments, the collaboration complements the other ongoing partnerships that GoPay has established with public transportation providers in various cities, including Kereta Commuter Indonesia, the MRT in Jakarta, Trans Pakuan’s bus services in Bogor, the Trans Semarang bus service and Blue Bird. According to GoTo, these partnerships also continue to support GoPay’s growth, with the number of GoPay transactions for mobility services having increased by more than four times from January to November 2022.

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