Indonesian ride-hailing and delivery company Gojek has announced it will stop operating in Vietnam starting Sept 16 after 6 years in the market, local media VnExpress International reported.

Gojek said the decision, made by its parent company GoTo after assessing its market presence in Vietnam, aims to strengthen business operations and aligns with the company’s long-term growth strategy.

“We will provide the necessary support to all affected parties and comply with current regulations and laws throughout this transition,” the report added. TNGlobal has reached out to Gojek.

Gojek was founded in 2010 with a focus on delivery and ride-hailing services, and its app was launched in January 2015 in Indonesia. The firm has grown to become Indonesia’s leading on-demand service platform.

According to the report, Gojek entered Vietnam in 2018 as GoViet, which merged with the Gojek brand in 2020. It offers two-wheel (GoRide) and car (GoCar) rides, food delivery (GoFood) and parcel delivery (GoSend), and operates in Ho Chi Minh City, Hanoi and Binh Duong and Dong Nai provinces.

Gojek’s announcement to exit Vietnam also came near to a year after it expanded its business in the country. In October last year, Gojek has just announced its expansion to Binh Duong (Di An, Thuan An, Thu Dau Mot) and Dong Nai (Bien Hoa) provinces, neighboring cities of Ho Chi Minh City.

Gojek has previously pulled out of Thailand in 2021 and is focusing on its home market and Singapore.

According to earlier report, Malaysian budget carrier AirAsia Group announced then it will buy Gojek’s Thailand business in a stock swap, giving Gojek a 4.76 percent stake in the airline’s lifestyle platform.

AirAsia will acquire Gojek’s business in return for $50 million worth of shares in AirAsia SuperApp, valuing the division at around $1 billion.

In Indonesia, Gojek’s gross transaction value increased by 18 percent year-on-year in the second quarter of this year while its number of completed orders rose 24 percent to reach record levels. It also saw a 3 percentage point increase in market share in Singapore, the report added.

Gojek expands services to users in Binh Duong and Dong Nai provinces