GoFood Strengthens GOTO’s Business | The presence of GoFood services in the Tokopedia application is said to be energy for the business of PT GoTo Gojek Tokopedia Tbk (GOTO). Samuel Sekuritas Indonesia analyst Muhammad Farras Farhan, assessed that this strategy will strengthen GOTO’s business fundamentals with three main services, namely on-demand via Gojek, e-commerce via Tokopedia, and financial technology (fintech) services through GoTo Financial.
Farras said the presence of GoFood in the Tokopedia application was in line with the cross-pollination strategy (synergy between platforms) set by GOTO in order to accelerate profitability.
“With this, the activity (transactions) will increase,” he said, quoted from an official statement, Monday (15/8/2022).
GoFood Strengthens GOTO’s Business. Prior to GoFood innovation in Tokopedia, cross-selling strategies were implemented between platforms, including by launching GoSend Car or GoCar services to deliver Tokopedia packages. There is also GoKilat as a delivery method for Tokopedia shopping and the launch of GoPay as a payment method on Tokopedia.
Farras added that the cross-pollination strategy in the form of the inclusion of GoFood in Tokopedia would have a wider impact on the entire GOTO ecosystem.
According to his research, Samuel Sekuritas still believes that GOTO’s Gross Transaction Value (GTV) growth potential will reach IDR 710 trillion in 2022 compared to the realization of IDR 461 trillion in the previous year, mainly due to the implementation of hyperlocal and cross-pollination strategies.
As is known, in the official announcement of GOTO, it is stated that currently the company has 4 pillars of business strategy to accelerate the achievement of profitability. The first is to increase cross-selling or sales between platforms consisting of Gojek, Tokopedia, and GoTo Financial. Second, using a hyperlocal approach for logistics services and e-Commerce fulfillment.
The third is to integrate fintech services across platforms. The fourth strategy is to increase value-added services for driver partners, business partners, and consumers.
On the other hand, the Associate Director of Research and Investment of Pilarmas Investindo Sekuritas, Maximilianus Nico Demus also welcomed the GOTO action. According to him, this is in line with the efforts to strengthen the ecosystem that has been set by GOTO management from the start to reach consumers more broadly, as well as create new experiences for the community.
“This is a step to build a large ecosystem. Moreover, Tokopedia is not kidding because it has almost become SuperApps too. Anything is available there. With GoFood, shopping at Tokopedia, delivery using Gojek. , it uses their group service too. Imagine how big it is,” he said.
This synergy will also make GoFood, which has been the leader of the online food delivery service market, even stronger.
“It’s definitely getting stronger because those who haven’t installed the GoFood application can order via the Tokopedia application,” Nico said.
Based on the results of JAKPAT’s research in July 2022, it was stated that GoFood was the leader with 61% as the most used service. Another research revealed by Southeast Strategics in June 2022 stated that GoFood is the most remembered online food delivery service provider (top of mind) by consumers and generates the largest level of spending in the industry.
“What kind of ecosystem does the community like and need, to provide a new experience, now GOTO can reach it by picking up the ball,” said Nico.
The GOTO action is also expected to have a positive impact on MSMEs, especially the culinary field, so that they will grow.
“Actually, it has been seen since the pandemic, where Gojek has become an extension of many people for shopping needs,” he added.
The presence of GoFood in the Tokopedia application is also considered a smart business strategy in order to optimize user synergy on each platform.
“There is a large room for growth, especially from so many Tokopedia users who have not installed the GoFood application and it is profitable for GoFood merchants because they can reach a wider market through Tokopedia,” he explained.
The size of the growth space is also reflected in the GOTO performance report in the first quarter of 2022 which noted that the slice of Gojek users with Tokopedia only reached 21% or around 11.6 million users. Since the ecosystem synergy strategy was implemented, GOTO’s cross-platform users have continued to grow by 37%.
In addition, cross-platform users are also 94% more loyal than single-platform users.