A report entitled “Swipe up and to the right: Southeast Asia’s $100billion internet economy”, compiled by Google, Temasek, and Bain & Company, cites Indonesia as the ‘king’ in the ride-hailing sector, or application-based transportation services, with the industry reaching US$6billion in 2019.
This growth is a 6-fold increase in the market since 2015.
“The ride-hailing sector is estimated to reach US$6 billion in 2019. It has grown by a factor of six since 2015 with an average growth rate of 57 percent,” says the study.
The study states that the ride-hailing sector in Indonesia will reach US$18billion by 2025. The projection states that Indonesia will be the largest contributor in the ride-hailing sector until 2025, by which time the total value of the ride-hailing sector in ASEAN will be US$40billion.
The ride-hailing sector itself cannot be separated from food delivery services. In this study, food delivery is the biggest booster of the ride-hailing sector.
“Food delivery has gone through changes in consumer behaviour since 2018. Now, food delivery is common for busy people and many families to order food delivery for daily meals or special agendas,” said the study.
Food delivery in the ride-hailing sector have also experienced a drastic surge in the past four years. In 2015 there was US$400million of food delivery in ASEAN. That number has since increased to US$5.2billion in 2019.
This study also notes the comparison between food delivery and online transportation services in 2025 will be equivalent in the ride-hailing sector. Of the US$40billion worth of ride-hailing in 2025, 50 percent of it will come from food delivery and the rest will be filled by transportation services.
Source: Warta Ekonomi