Both companies are expanding their businesses into cloud kitchen services, in the form of restaurants that accept orders online and deliver to customers’ doorsteps but do not offer dine-in facilities.
he rivalry between two of Asia's biggest super-apps has been taken up a notch with Grab and Gojek competing for turf in Indonesia’s food delivery market by developing cloud kitchen services.
Singapore-based decacorn startup Grab has since 2018 developed its cloud kitchen business, GrabKitchen, under its business unit Grabfood. Following Grabfood’s good performance in the first half of this year, it will expand the business by opening 50 outlets by the end of the year.
Meanwhile, home grown decacorn Gojek, in cooperation with India-based internet restaurant startup RebelFoods, began building cloud kitchens in July, with a plan to have 100 built within an 18 month period.
Nielsen Singapore‘s latest study on the trend in app-based food-delivery services in Indonesia shows that 95 percent of the 1,000 consumers surveyed in the last three months ordered fast food, of whom 58 percent made their orders through smartphones.
“According to the study conducted in seven major cities, most of the consumers used their smartphones 2.6 times a week to order food,” Nielsen Singapore’s executive director of consumer insight Garick Kea told reporters in Jakarta on Sept. 19.
Kea added that the market was still wide open, as 42 percent of urban consumers did not use such services. Indonesia, with 64.8 percent internet penetration and a rapidly growing number of middle-class consumers, provides a robust market for app-based food delivery services.
“Young professionals are willing to spend more money to save time and improve efficiency,” Kea said.
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