Gojek Reveals the Strategy and Achievements of the Food Delivery Business "GoFood" in 2022

Gojek reveals the latest data regarding the performance of the GoFood food delivery service, responding to the Momentum Works report previously presented. Gojek said that the transaction value of GoFood Indonesia and Vietnam managed to grow more than 2x, higher than the average food delivery industry in Southeast Asia throughout 2022.

Previously submitted in Momentum Works report, transaction GrabFood in Southeast Asia is almost four times higher than GoFood during 2022. Explained further, the GMV value GrabFood reached $8,8 billion, meanwhile Gojek placed third with a GMV of $2,4 billion. For this achievement, GrabFood has been named the leader in the food delivery market in Southeast Asia for the third year in a row.

Despite Gojek without going into specific data further, the company claims GoFood's positive performance is due to the growth in the number of loyal customers (the order value is above the average transaction value of other customers) and the increase in the average transaction value per customer in the second half of 2022.

It was stated that during the past year it was supported by an increase in the proportion of loyal customers in Indonesia from 38% to 52% of the total number of GoFood customers. This positive trend was also followed by business achievements in Vietnam, where the transaction value increased more than 2x compared to 2021.

"This success is a manifestation of the success of GoFood's strategy which focuses on growing a loyal and quality customer base through product innovation," said GOTO Director/Head of Food and Indonesia Sales Catherine Hindra Sutjahyo in an official statement, yesterday (19/1).

Catherine continued every company innovation at GoFood it always focuses on developing product solutions so that customers are more loyal, because basically, customers have different food consumption desires and behaviors.

"With our eight years of experience as experts in the OFD market (online food delivery), we analyze and utilize data to map the needs of each customer (personalization) in order to present the right choices so that consumers are more loyal to our services.”

He continued, "Not only on the customer side, we are also able to develop solutions for our culinary business partners so they can target customer segments more effectively. Simultaneously, we are also helping GoFood's culinary business partners improve their skills in managing the business in a sustainable manner. The goal is to build a customer base loyal to GoFood can grow and support a healthy business without dependence on promotions".

Catherine also revealed GoFood's strategy to accelerate profitability, namely:

1. Strengthen brand GoFood as an OFD service that provides the most enjoyable culinary experience with precise recommendations based on search technology. This technology is able to recommend food menus and restaurant choices that suit each customer's taste, history, and budget.
2. Develop technology machine learning for a more effective promo allocation to potential customers (potential users), new customers (newuser) and those who have become GoFood customers (existing users) that can be encouraged to become loyal customers.
3. Increasing the efficiency of promos carried out independently by GoFood business partners (merchant funded promo) to help increase the income of business partners while reducing their marketing costs.

GoFood Achievements

Next, a number of GoFood's achievements and innovations over the past year also don't forget to mention, including:

1. Presenting Savings Mode to provide more affordable shipping cost options to maintain customer purchasing power.
2. Launched a menu with smaller portions at more affordable prices.
3. GoFood PLUS subscription packages which are claimed to have received positive feedback from the public, the number of subscription packages has increased by almost 60% compared to the previous year.
4. Jaringan cloud kitchen “Dapur Bersama GoFood” increased by 170% to 73 locations spread across 12 major cities, amidst the bustle of similar players that went out of business last year.
5. The number of GoFood Indonesia's culinary business partners will increase by 45% throughout 2022.

Quoting from the GOTO performance report, GoFood's GTV (Gross Transaction Value) is included in the business line on-demand covering mobility, food delivery and logistics, reached IDR 15,7 trillion in the third quarter of 2022, growing 24% year-on-year.

This business line recorded a significant increase in contribution margin and Group adjusted EBITDA, faster than expected. Contribution margin is an 86% increase quarter-on-quarter or -0,5% as a percentage of GTV. In the official GOTO management guidelines, the achievement of the break-even point for this segment's contribution is targeted to be positive in the first quarter of 2023.

The more positive the contribution margin is one of the GOTO indicators towards a breakeven point and then continue with profitability. The breakeven point means that you are not making a loss, but you are not making a profit either.