Traveloka Closes “Traveloka Eats” and “Traveloka Send” Services Immediately

Traveloka immediately closed the food and logistics delivery service, Eats and Send. The decision was taken because of the rise of the tourism industry, which has been the company's main business since its inception. This closure follows the service online groceries“Traveloka Mart” which closed at the end of August 2022.

Launching from the information provided by Traveloka to merchant, Eats will effectively stop operating on October 31, 2022. It was announced that on that date, Traveloka Eats will no longer accept new transactions; will recapitulate transaction data and carry out payment obligations; and, a refund by the parties, if any.

When contacted by DailySocial.id, a Traveloka source stated that the termination of these two services was part of the company's business strategy and priorities. "Along with the rise of the travel sector, we are very enthusiastic about welcoming this in the future," he said, Friday (30/9).

Furthermore, before the deadline expires, his party ensures that throughout the process, employees, partners and consumers remain the main focus of the company, in order to ensure a good transition according to applicable regulations. Not only that, continue to coordinate with partners, and provide support in the process of stopping the Eats and Send service taking place.

For the record, Traveloka's exploratory steps go to lifestyle super app more intense since the start of the pandemic. At that time the spirit was to keep the company relevant to the lifestyle needs of the community. Mart, Eats, and Send are three services that have just been released during this time. It's not a rumor, but coincidentally all three are business verticals that can't be separated from large subsidies for user acquisition.

Traveloka Eats has been around since 2021, reaching the cities of Jakarta, Bandung, Yogyakarta, Surabaya, Bali, and Medan. The company recruited its own delivery fleet, in addition to being supported by a fleet from Lalamove. This fleet is also utilized for Send . solution which was just released earlier this month. It's only a lifetime, this solution is only available in Jabodetabek for a maximum delivery of 12 km.

However, there are actually other services that are not directly related to the accommodation and travel business in Indonesia super app Traveloka, for example, is a gold investment service in collaboration with Pegadaian. According to the information in the application, they will soon complement the investment product options with other instruments.

In addition to investment products, according to records DailySocial.idDuring the pandemic, Traveloka also released other solutions, namely QuickRide which utilizes the API from Blue Bird for ordering taxis, Health for teleconsultation services with doctors, and Online Xperience Visual Tours packaged with the live broadcast method. All of the services above can be ascertained not to be heavy in terms of investment that must be issued by the company because it utilizes APIs from third parties.

Compared to its closest competitors, such as Tiket.com and Pegipegi, Traveloka's way of building a service ecosystem is different. They are not limited to services that are directly related to travel and lodging. Moreover, Traveloka tries to offer a complete lifestyle experience in one application. Its rivals are still focused on deepening travel and accommodation services with various supporting features.

The tourism industry started rebound

Yesterday (29/9) during the announcement loan facility from a well-known investor, Traveloka Co-founder & CEO Ferry Unardi said, his business continues to increase and the tourism industry has bounced back from the pandemic. The fresh funds received will later be used to strengthen our balance sheet and allow us to continue to focus on our core business, while building our future business.

Along with the incessant global vaccination and other factors, as of the second quarter of 2022, Central Bureau of Statistics (BPS) recorded a significant increase in tourist arrivals to Indonesia reaching 172% compared to the same quarter in the previous year. Compared to the previous year, it fell 75% to 4,02 million in 2020 from 16,11 million in 2019.

The figure drops further to 1,56 million by the end of 2021 due to tighter travel restrictions by the government. Following the outbreak of the Delta variant of the corona virus in July 2021.

The pandemic has been a major blow to the Indonesian tourism industry. The World Travel & Tourism Industry report highlights that, prior to the pandemic, Indonesia's tourism industry accounted for 5,9% of the country's total GDP and employed around 13,1 million people in 2019. That contribution stalled during the pandemic. However, with the COVID-19 pandemic showing signs of slowing down, the Indonesian government is finally pushing to revive the sector.

Quote from International Labor Organization (ILO/International Labor Organization), this industrial tourism sector is a key driver of economic growth, business development and job creation, especially for women, youth, migrant workers and local communities.

Prior to the COVID-19 crisis, the tourism sector accounted for one in 10 jobs worldwide and about 10 percent of global GDP. This sector employs mostly women and youth. In 2019, women accounted for more than 50% of workers in this sector, and the majority of all workers in tourism were under 35 years of age.

Tourism is one of the industries hardest hit by the COVID-19 pandemic and the consequences are being felt in the informal sector, the decent work deficit is also most pronounced. Informal or casual work often involves women, youth, indigenous and tribal peoples, migrant workers and local communities, who are disproportionately affected as a result.