Gojek - The Jakarta Post

Gojek’s innovations during COVID-19 boost consumer reliance

October 2020, 13
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Once again, Indonesian super app Gojek has been lauded for its agile and adaptive innovations during the COVID-19 pandemic, which have boosted consumer reliance on its services even more amid the constraints and social restrictions brought about by the pandemic.

After Gojek received recognition from a joint study by research institutes UXalliance, Usaria and Somia CX, in which its users hailed it for providing the best user experience (UX) and it was the runner up for the best customer experience (CX) in the world amid the pandemic, another research study has testified to the super app’s efficacy.

The University of Indonesia (UI) School of Economics and Business Demographics Studies Center recently released its survey result, confirming that Indonesian consumers have indeed increased their dependence on digital services amid the pandemic.

As a digital services provider, Gojek stands out greatly in this research study. The majority of consumers surveyed (86 percent) say they feel the super app has helped them adapt smoothly to new habits and stay productive during the COVID-19 pandemic.

An overwhelming majority of respondents – 93 percent of them – said they perceived that Gojek’s safety measures were above standards.

Furthermore, the study also found that the majority of Gojek-using consumers have increased their use of the super app’s services during the pandemic compared to the pre-pandemic period, as the outbreak has restricted their mobility.

Gojek services recording the highest spike in usage are: GoFood (65 percent usage increase), GoPay (68 percent), Paylater (57 percent) and GoSend (36 percent). Consumers also report increased monthly spending on groceries shopping (using GoMart, with 44 percent monthly spending hike), as well as online food delivery (GoFood, with a 26 percent hike).

Overall, the amount of GoPay balance used by consumers per month increased 8%.

The research result is in unison with a similar finding in a study by Facebook and Bain & Company, which cites the COVID-19 pandemic as the primary driver of digital services acceleration. This pandemic-driven acceleration has accomplished within less than six months the level of digitalization that, without these exceptional circumstances, would only have been accomplished within five years in Southeast Asia alone.

The UI research center delves deeper to investigate this trend among Indonesians. It samples Gojek because the super app has the highest number of active users in the country. The latest study by the research center is part of a larger series of research on Gojek’s socioeconomic impact on Indonesia, which seeks to understand the effects of the pandemic on Gojek’s partners and elements of its wider ecosystem.

The research study also corroborates other studies that found the pandemic had escalated digital transformation, with 97 percent of respondents saying that Gojek services had accelerated the adoption of digital payment, 97 percent saying they had made it easier for people to start their digital business, and 96 percent saying its services had helped them adopt a healthier lifestyle during the pandemic.

“This research shows how the pandemic has become a push factor that shapes new behaviors while accelerating digital transformation in Indonesia. During the pandemic, consumers are increasingly reliant on digital services for their daily needs, such as online food delivery, courier services and digital payments,” said UI School of Economics and Business Demographics Studies Center researcher Alfindra Primaldhi.

“We also see a spike of usage in digital services, especially those less frequently used prior to the pandemic, such as GoMed (telemedicine service) and GoGive (online donation channel). Digital platforms like Gojek help consumers to adapt and stay productive amidst this uncertain period,” he continued.

The study also found that the average digital transaction value and volume had increased during the pandemic, both in and out of the Gojek ecosystem. This indicates that consumers who are longtime users of the Gojek super app and have sufficient income, use digital platforms more intensely during the pandemic.

At the same time, the study also found a decrease in the mobility of consumers amid the pandemic, as shown from a corresponding decrease in consumer spending (which has declined by 18 percent) on the super app’s online motorcycle transportation service GoRide.

The researchers explain that this is a normal response to the large-scale social restriction policy enforced in various large cities across Indonesia, which means that consumers are spending more time at home.

Alfindra added that in line with the findings in the center’s previous study on Gojek drivers and the super app’s micro, small and medium enterprises (MSMEs), the study center also found that Gojek consumers were equally driven by a spirit of collaboration, true to the Indonesian tradition of gotong royong, in making social contributions through the super app during the pandemic.

“More than half of Gojek consumers, accounting for 60 percent, have given social assistance to its partners during the pandemic. They made use of in-app services, such as when they tipped driver partners using GoPay (as done by 67 percent of consumers), while adding extra food for drivers when they ordered on GoFood (24 percent of consumers). Still, some others (16 percent) have used the treat your driver option to buy meals for driver partners. Consumers also supported driver partners outside of the app by giving them cash tips (67 percent), food (26 percent) and staple goods (9 percent),” Alfindra said.

Gojek’s ecosystem also helps consumers maintain their social ties with families and friends despite the physical distance.

A majority of consumers use GoFood to order meals for their families and friends (73 percent), order healthy food (55 percent), and send goods to others via GoSend (62 percent).

The study finds that an overwhelming majority of consumers remain loyal to Gojek because the app is perceived to be helpful in their lives. Around 90 percent of consumers reported a higher quality of life after using Gojek services, 94 percent say they will keep on using Gojek and 96 percent are willing to recommend Gojek to their friends and relatives.

This research was done using a quantitative method through an independent online survey in September 2020. Respondents of the survey are Gojek’s active users selected via a randomized sampling method. The total number of respondents who finished the entire questionnaire and were eligible to be analyzed was 4,199.

The result of this research can be generalized to Gojek’s consumer population, with a level of confidence reaching 95 percent.