After acquiring Gojek’s Thai operations, can an AirAsia superapp soar in Southeast Asia?

The low-cost carrier has stepped up its digital ambitions by acquiring Gojek’s ride-hailing and payments businesses in Thailand, in an all-share deal

But analysts say it faces an uphill battle as the regional competition for superapps grows heated among giants such as Gojek, Grab, and Shopee

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AirAsia Digital portfolio includes AirAsia’s mobile application, which has evolved into a superapp. Photo: Getty Images

Published: 12:00pm, 12 Jul 2021Updated: 12:20pm, 12 Jul 2021

Low-cost carrier AirAsia has stepped up its digital ambitions by acquiring tech behemoth Gojek’s operations in Thailand, but industry watchers say the airline faces an uphill battle in Southeast Asia’s heated superapp competition.

The all-share deal will see AirAsia take Gojek’s ride-hailing and payments businesses in Thailand, which are worth a combined US$50 million, while the Jakarta-based unicorn will get a 4.76 per cent stake in AirAsia Digital.

That digital venture, previously named RedBeat Ventures, was launched in 2018. Its portfolio includes AirAsia’s mobile application, which has evolved into a superapp that offers non-airline-related services such as e-commerce for lifestyle and beauty products; cross-border logistics; food deliveries; and payments. The AirAsia Digital venture also runs a training centre in Malaysia, which was established in collaboration with Google to provide a fresh pool of software engineers and data scientists.

While the airline is accessible from all countries in Southeast Asia, AirAsia’s non-travel services are only available in Malaysia, Singapore, and Indonesia. Buying Gojek’s ride-hailing and payment businesses in Thailand will therefore expedite AirAsia’s foray into the market and allow it to learn from the Indonesian tech giant as it develops its own superapp.

“This collaboration provides a good way for AirAsia to understand the operations, strategy, and mindset of a leading superapp,” said Joshua Chong, Singapore-based fintech analyst at consulting firm Kapronasia. “Thailand is a good test bed, and a market with growth potential, [with its] sizeable population and small and medium enterprises [SMEs], low banking penetration, and low SME digitalisation.”

AirAsia could also test new services in the market as Bangkok “is relatively open to innovations in the financial technology arena”, Chong said.

Gojek, which was last valued at US$10 billion, has successfully transformed itself from an online ride-hailing service into a superapp behemoth that provides food and grocery deliveries, cargo, and payment services, among others.

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