The Social Dimensions of a Potential GoTo-Grab Merger: A Review of Employment, Driver Welfare, and Regulatory Implications

Abstract

The proposed merger between GoTo and Grab represents a major potential consolidation in Southeast Asia’s digital economy, raising concerns about market competition, employment dynamics, and driver welfare. If completed, the merger could give the combined entity more than 90% of Indonesia’s ride-hailing market, highlighting the need to examine the adequacy of existing regulatory safeguards. This study examines the potential implications of the merger for employment, driver welfare, and regulatory effectiveness. It employed a structured and integrative literature review, synthesizing academic studies, industry reports, financial data, and policy analyses to assess labor conditions, platform profitability, and competition regulation. The findings indicated that drivers earned approximately Rp 2.2 million to Rp 4.0 million monthly, substantially below Jakarta’s 2025 minimum wage of Rp 5.39 million. Both companies also demonstrated progress toward profitability by fiscal year 2025, with GoTo substantially reducing customer acquisition costs and Grab recording rising customer lifetime value, indicating differing levels of platform maturity. However, consolidation could create a quasi-monopsonistic labor market, weakening drivers’ bargaining power and reducing competitive incentives. Indonesia’s post-merger notification system also limits proactive regulatory intervention. This study contributes an integrated assessment of the economic, labor, and regulatory implications of platform consolidation. It recommends adopting a pre-merger or hybrid notification regime, strengthening labor protections, enforcing data portability, and improving algorithmic transparency to ensure that corporate efficiency does not come at the expense of worker welfare and fair market competition.