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Yearender 2020: The year tech start-ups bloom, spurred by the pandemic
While many businesses are negatively affected by the COVID-19 this year, technology companies are thriving amid the accelerated digital transformation that has prompted a shift in people’s behavior.
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Illustration of online shopping (Shutterstock/Stanisic Vladimir)
W
hile many businesses are negatively affected by the COVID-19 pandemic this year, technology companies are thriving amid the accelerated digital transformation that has prompted a shift in people’s behavior.
A report by tech giant Facebook and business consultancy Bain & Co. on the digital economy in Southeast Asia noted that COVID-19 had brought five years of digital transformation in a single year. The physical distancing requirement during the pandemic has paved the way for home-centric lifestyles, as well as commerce with minimal physical contact, according to the report.
The report also showed that Indonesia’s digital consumer population growth outpaced that of other countries in the region. While growth in neighboring countries averaged 5 to 9 percent, Indonesia’s digital consumer population rose 15 percent in 2020, the study noted.
Consequently, Indonesia’s gross merchandise value (GMV) from the digital sphere is projected to grow by 11 percent year-on-year (yoy) this year to US$44 billion, according to the e-Conomy SEA 2020 report by Google, Singapore state investor Temasek Holdings and Bain & Co.
Read also: Indonesian tech firms seek profitability as digital economy grows
During the first months after the novel coronavirus hit Indonesia in March, e-groceries platforms were experiencing a surge in demand as people stocked up on groceries and cleaning products.
Case in point: Cecep Wahyudi, CEO of food marketplace Etanee, said in a written statement on March 22 that the company could sell up to 1,000 kilograms of mangosteen and 1,000 kg of chicken daily.
