An on-demand platform in the food delivery segment, GoFood, leads the online food delivery service owing to its loyal customer base, according to a CLSA research report.
However, their report noted that competitor GrabFood's service was also in demand among consumers owing to the discount options offered.
GoFood's superiority over GrabFood is recorded in the CLSA thematic research announced on February 24, 2021, with results indicating 35 percent of the respondents opting for Go-Food while 20 percent of the respondents leaning toward GrabFood.
CLSA analyst, Jonathan Mardjuki, stated in his research note that the theme of online food delivery was selected since the sector is one of the most lucrative businesses amid the pandemic.
"The pandemic has changed business dynamics across the industry. Online food delivery is benefiting from the change. Our survey shows that 70 percent of the 450 respondents order food online more frequently than before," Jonathan noted in the research report through a press release on Saturday.
"There are only two big players in the online food delivery business in Indonesia: Go-Food that is owned by the Indonesian start-up Gojek and Grab-Food that is owned by a startup company from Singapore, called Grab," he remarked.
The survey was conducted on 450 respondents, most of whom were from Jakarta and Bodetabek (Bogor, Depok, Tangerang, Bekasi). The survey was divided into various segments. Based on monthly income, the proportion (19-23 percent) is relatively the same for the salary group of Rp4-6 million, Rp7-10 million, Rp11-20 million, and above Rp20 million.
Meanwhile, 10 percent of the respondents earn less than Rp3 million or do not have a monthly income at all, such as students or college students.
The survey results are also based on their income level, brand preferences, frequency of ordering food online, and several other factors.
As a result, more people, specifically 35 percent, opted for GoFood as opposed to 20 percent for Grab. Meanwhile, 43 percent of the respondents used both applications.
"GoFood, in our opinion, has more loyal customers, where the top three benefits of using the application are familiarity with the application, dependence on the GoPay e-wallet, and user-friendliness," he stated.
Meanwhile, it is the contrary for GrabFood since research results showed that 60 percent of the respondents believe big discounts are the main advantage.
"We find Gojek customers to be more loyal, while Grab relies on commerciality. We also consider Grab to be more aggressive in securing its tenants (customers). Overall, we think healthy competition between the two giants will have a positive impact on the Indonesian market," he remarked.
CLSA estimates Gojek's market share to rise to 58 percent, while Grab is at 42 percent. Based on the survey, CLSA also believes that customers have currently shifted their focus to aspects, such as application convenience rather than faster delivery or lower cancellation rates by drivers, as in the early days.
"This has become a common standard for online platforms," Jonathan stated.
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