Goto Exits Tough Vietnam Market to Focus on Profitability
Goto, one of the major players in the ride-hailing app market in Southeast Asia, has decided to scale back its operations in Vietnam, where it is facing fierce competition and economic challenges. This decision is aimed at helping the company concentrate on achieving profitability—a crucial step following their recent IPO, which fell short of analysts' expectations.
According to sources, Goto will be shutting down its operations in Vietnam as attempts to capture market share in this region proved more challenging than anticipated. The competitive landscape features strong players like Grab and another local operator, thereby exerting additional pressure on Goto's profits.
The decision to exit the Vietnamese market was made amid concerns regarding high marketing costs and an ongoing price war. During a press conference, company executives noted that this move would allow Goto to reallocate its resources to more profitable segments of the business in other countries, such as Indonesia and Malaysia.
It was also reported that Goto plans to optimize its activities in other regions, which implies reducing additional costs and improving services for users. This decision has been welcomed by analysts who emphasize the need for the company to take tough measures to ensure stability and long-term profitability.
However, the exit from the Vietnamese market also casts a shadow over Goto's expansion plans and ambitions in Southeast Asia. Investors are closely monitoring how the company will act going forward, as this decision may significantly impact its reputation in the region.
In conclusion, despite the challenging circumstances, Goto's management is confident that the right moves in the current situation can lead to a restoration of funding and profitability in the near future. This strategy is expected to allow the company to focus on the most successful markets and become a resilient organization amid fierce competition in the industry.
