JAKPAT Research: GoFood, the Most Used Online Food Delivery Application

TRANSPORTATION BUSINESS - JAKARTA. Although GoFood is not the online food delivery app that gives promo and discount the most, GoFood still maintains its market leadership as the most used Online Food Delivery (OFD) application.

This on-demand service of PT Go To Gojek Tokopedia Tbk (GOTO) consistently wins the competition due to various factors beyond price, such as popularity, payment system, easy-to-use app, and delivery speed.

This is the finding from the recently published JAKPAT Survey Report, titled The Habit of Online Food Delivery (OFD). The research data collection was carried out on May 25-26, 2022, involving 1,624 respondents in large cities in Indonesia through questionnaires via the JAKPAT application. The survey’s margin of error is below 3 percent.

The survey result shows that 61 percent of respondents use GoFood in the last three months.Meanwhile, a 55 percent use ShopeeFood, followed by GrabFood (43 percent) in third place and TravelokaEats (7 percent) in fourth place.

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39% of respondents also reported that they mostly use GoFood compared to ShopeeFood (38%), GrabFood (22 percent), and TravelokaEats (1 percent).

GoFood is the most used application mainly because of its discounts and promo (76%), consumers’ familiarity with GoFood app (55%), and the easiness of payment method (47%).

Other factors are the large selection of restaurants and menus (40 percent), application rating (36 percent), delivery speed (35 percent), and the easy-to-use display of attractive applications (31 percent).

However, GoFood is actually not the company that burns money for promo and discount the most. 89% respondents placed ShopeeFood as the company with most discount and promo.

The second place is GrabFood (81 percent) and then GoFood (76 percent). While TravelokaEats  is 60 percent.

“According to our research, price sensitivity is one of the strong variables to influence consumer decisions. But actually, it is not the only determining variable,” said the JAKPAT Content Research Leader, Fransisca Satya Chrisprastika.

The woman, who is usually called Tika, explained the survey results showed that a company cannot only rely on giving promo, “But, it’s also about the users experience. GoFood has the advantage of the first-time mover in the market and many consumers are familiar with its user interface and services,” she clarified.

She further explained that consumers do not only consider price of the food or the beverage, but they also take into account other factors, such as the delivery speed. Both combined will make consumers consider whether the service provides value of money.

Tika assessed that the trend of OFD services generally grows along with the new society habit of online transaction, especially since pandemic. As more people use OFD, it grows the market for all players, especially GoFood, which also contributes to the business growth of GoTo, its parent company.

JAKPAT also found that most of their respondents are employees (57%) and students (46%). When divided into each demography, employees mostly use GoFood as its preferred app. As employees have had their financial independence, GoFood can expect more sustainable transaction compared to students.

Recently, Tenggara Strategics also released the survey results, titled Survey of Perceptions and Behavior of Online Food Delivery Consumption in Indonesia. The result also echoed similar finding that GoFood becomes the champion with the largest transaction value and the most downloaded application.  The survey involved 1,200 respondents.

In 2021, the total Gross Merchandise Value (GMV) of Indonesia’s online food delivery reached 78.4 trillion rupiahs, in which 39% of the total value or equivalent of 30.65 trillion rupiahs came from GoFood. GoFood is the largest contributor to Indonesia’s OFD GMV.

The Economic Research Lead Tenggara Strategics, Stella Kusumawardhani, explained, that GoFood wins in many factors that drive consumers’ decision and interest in OFD services. “Indeed, GoFood's dominance is quite large. For example, from awareness, the gap is far from ShopeeFood and GrabFood,” she disclosed.

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Not to mention from the number of transactions, downloads, and several other factors. “Of 12 aspects, GoFood wins in 10 of them. So it’s very dominant,” she continued.

From the research results, Stella assessed the price factor is very influential in making consumers choose this service. However, the price alone is not enough to win the competition in this industry.

“All right. The price is one of the consumers considerations. But it’s not the only one, and not all consumers are that sensitive to prices,” she explained.

If pricing is done simply to win the competition and done by giving a lot of promotions, that may create negative impact to the OFD industry. “The industry wants a sustainable business. It's not good to make great promotions all the time, although everyone knows that the price is very tempting. But don’t focus on it all the time,” she advised.

Especially after this pandemic, the OFD industry is growing and owns a fairly high positive impact to the economy growth. Since the growth space still very large, the industry sustainability needs to be maintained.

“Therefore, this sector, in my opinion, needs to be considered. Because it’s still going to develop. It needs to be supported. Because there is a big role of OFD services to carry out digitalization efforts continually, including for SMEs (Small Middle Enterprises),” Stella added.