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View all search resultsomegrown tech giants are tapping into the underserved sector of warung (kiosks), as the COVID-19 pandemic accelerates the digitalization of small and medium enterprises (SMEs).
In a country where small businesses account for more than 60 percent of the economy, warung are the nearest retail spots for many people to make small purchases of snacks or household supplies.
Indonesian unicorn Gojek is the latest player to enter the race with the September launch of GoToko, an online business-to-business (B2B) platform that allows small retailers to access brand principles, give product recommendations and use Gojek to receive stock shipments, among other services.
“We want brands to come on board with us to better cater to the underserved, as it is sometimes difficult to distribute goods to warung,” GoToko CEO and president director Gurnoor Singh Dhillon said during a press briefing on Tuesday, explaining that warung usually bought products in small bulk and often faced difficulties with lengthy distribution chains.
There were an estimated 2.5 million underserved warung in the country, Dhillon added, which did not have access to efficient assortment and reliable logistics support.
Small businesses have been severely impacted by the COVID-19 pandemic, as people have been avoiding leaving their homes over fears of contracting the virus.
Small retailers make up a major chunk of the US$380 billion retail market in Indonesia, according to management consulting company Redseer.
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