Indonesia On-Demand Services Market Report – 2021: Ken Research

The On-Demand Economy is defined as an economic activity created bytechnology companies that fulfill consumer demand through theimmediate provisioning of goods and services. Supply is driven throughan efficient digital web layered on top of infrastructure networks. Thus,the on-demand economy has and will continue to revolutionizeconsumer behavior across the globe.

The revenue generated from on-demand services in Indonesiaaugmented from USD ~ million during 2015 to USD ~ million during2016, achieving robust growth of ~% in 2016 compared to the previousyear. The rising internet penetration coupled with increasingsmartphone users and changing consumer behavior have been theprimary factors driving the revenues of this market during the reviewperiod.

Changing Landscape of On-Demand Services in IndonesiaOn-Demand service providers have expanded their scale of operations andportfolio of services to include food delivery, groceries, laundry, ACservicing, house cleaning and housemaids.However, on-demand transport and supermarket and grocery serviceshave accounted for ~% of overall on-demand service industry revenuesduring 2016.

Performance of Indonesia On-Demand Transport Services MarketThe revenue generated by on-demand transport services grew ~% to USD~ million during 2016 from USD ~ million during the previous year. Thecore factors that have driven the revenues of this market include theintroduction of two wheel taxis by ride hailing applications, expansion incar fleet to match demand, growing demand for ride sharing and belowmarket fares charged by these app based tech companies compared totraditional taxis.

The total revenue generated from on-demand bike services inclined toUSD ~ million during 2016, registering a total of ~ million completedorders during the same period. Major players operating in this spaceinclude UberMoto, Go-Ride and GrabMoto.

The total revenue generated from on-demand car services inclined toUSD ~ million during 2016, registering a total of ~ million completedorders during the same period. Major players operating in this spaceinclude Uber, Go-Car and GrabCar.

The total revenue generated from on-demand, non-sharing car serviceswas evaluated at USD ~ million during 2016, contributing ~% to overallon-demand car services market revenues during the same year.The total revenue generated from on-demand sharing car services wasevaluated at USD ~ million during 2016, contributing ~% to overall on-demand car services market revenues during the same year.

Performance of Indonesia On-Demand Supermarket and GroceryServices MarketThe revenue generated from on-demand supermarket and groceriesservices market in Indonesia inclined ~% to USD ~ million during 2016from USD ~ million in the previous year. The continued increase inmobile adoption and broadband penetration has aided the boost inonline sales of products. In addition, time constraint of individuals due totheir busy schedules coupled with traffic congestion has resulted inlandscape changes in customer purchasing patterns.

The revenue generated from the groceries segment augmented to USD ~million during 2016, accounting for ~% of overall on-demandsupermarket and groceries market revenues during the same year. Therevenue generated from the electronics segment was evaluated at USD ~million during 2016, contributing ~% to overall on-demand supermarketand groceries market revenues during the same year.

The revenue generated from the lifestyle segment was evaluated at USD ~million during 2016.

Majority of Indonesians have still not completely adapted to procuringitems online, especially apparel. The revenue generated from the apparelsegment was evaluated at USD ~ million during 2016, contributing ~% tooverall on-demand supermarket and groceries market revenues during thesame period.

PT Sumber Alfaria Trijaya (Alfamart Group), Alfacart has been one of theleading companies in the on-demand supermarket and groceries servicesmarket; from its inception in early 2016.

Performance of Indonesia On-Demand Food Delivery MarketThe revenue generated from on-demand food delivery in Indonesiawitnessed a growth of ~% to reach USD ~ million during 2016 from USD ~million during the previous year.

In view of the fact that on-demand food delivery applications were a recentintroduction in Indonesia, the market is in its nascent stage, resulting in lowrevenue generation from this segment.

Working individuals and homemakers have a higher preference for on-demand food delivery as it gives them the luxury of relaxing at home insteadof visiting the restaurant to place and pick up their order. In addition, longqueues at restaurants, time constraints, rising intensity of traffic jams andlack of parking space across food outlets have caused individuals to shifttowards modern food delivery services.

The cumulative number of food delivery bookings where customerspreferred to pay in cash was evaluated at ~ million during 2016, accountingfor ~% of overall food delivery bookings in the country during the same year.

However, the introduction of payment wallets by companies such as Go-Jek has incentivized more customers to shift towards makingtransactions online Go-Jek’s food delivery division (Go-Food) hasdominated the on-demand food delivery market, registering a total of ~million orders during 2016. The company has invested a great deal ofresources to tie up with leading restaurants and merchants in Indonesia.

Grab-Food recorded a total of ~ million food delivery bookings in 2016,accounting for ~% of all on-demand food delivery orders during thesame year. Grab has partnered with local street food outlets in additionto leading restaurant to augment customer choice.

Snapshot of Indonesia On-Demand Beauty Services

The revenue generated from on-demand beauty services in the country grew ~% to USD ~ thousand during 2016 from USD ~ thousand during the previous year. The rise in image conscious individuals and the increasing need for people to maintain etiquette at work and during social interactions have driven the revenues of the beauty and personal care market.

As women participation in the labor force has been increasing, they are strapped for time and prefer to obtain beauty services at home. The rising demand for availing beauty services including waxing, nail care, facials and hair care services at home have incentivized many startups including Go-Jek to penetrate this market.

Snapshot of Indonesia On-Demand Laundry Services

The on-demand cleaning services market in Indonesia began to developwith the rapid increase in working class population as more individuals werebound by time constraints to do their own laundry.

The revenue generated from on-demand laundry services enhanced ~% toreach USD ~ thousand during 2016 from USD ~ thousand during theprevious year. One of the major factors that had stimulated higher growthduring 2016 was the increasing number of service providers offeringpremium laundry services. In addition to this, increasing womenparticipation in the labor force, rising youth and expat population acrossdeveloped cities have positively impacted market growth.

In the past, laundry services in Indonesia had no middle ground as priceswere either too reasonable or too expensive and people did not trust thevery reasonably priced companies.

Snapshot of Indonesia On-Demand AC Service Market

The influx of on-demand laundry service providers including Ahlijasa,Taptopick, Kliknklin have effectively penetrated this space by offeringadditional value-added services to enhance the existing market The revenuegenerated from on-demand AC services in Indonesia inclined ~% to reach USD~ thousand during 2016 from USD ~ thousand during 2015. The increasingnumber of startups penetrating this space has helped streamline the market.As a result, these startups have witnessed rising number of daily visitors ontheir mobile application coupled with increasing service requests. The totalcompleted service requests for on-demand AC servicing increased to ~ during2016 with the average cost per service amounting to IDR 60,000 (USD 4.5)during the same year.

The revenue generated from on-demand AC services in Indonesia inclined~% to reach USD ~ thousand during 2016 from USD ~ thousand during2015. The increasing number of startups penetrating this space has helpedstreamline the market.

As a result, these startups have witnessed rising number of daily visitors ontheir mobile application coupled with increasing service requests. The totalcompleted service requests for on-demand AC servicing increased to ~during 2016 with the average cost per service amounting to IDR 60,000(USD 4.5) during the same year.

AC repair and cleaning is one of the more popular services requested bymajority of households in Indonesia, especially in urban areas.

The total GMV of on-demand AC services market was estimated to be USD~ thousand during 2016. Startups that have entered this market act as amatchmaking platform to put service seekers in touch with serviceproviders.

Snapshot of Indonesia On-Demand Cleaning Services

The evolution of consumer behavior has been one of the primary factorsthat had shaped the on-demand services market in Indonesia. Theadvancement in mobile technology and reduction in price of smartphoneshad augmented the number of smartphone users in the country. Inaddition, the rising working class population has preferred to outsourcehousehold chores due to busy work schedules and time constraints.

The revenue generated from on-demand cleaning services in Indonesia grew~% to reach USD ~ thousand during 2016 from USD ~ thousand during theprevious year. The on-demand cleaning service market is still in its inceptionstage; due to which, the total number of cleaning service orders completedin the country was estimated at ~ during 2016.

The rising minimum wage rate in the country has been a crucial factor thathas positively impacted the number of bookings for on-demand cleaningservices in the country.

Future Outlook of Indonesia On-Demand Services Market

The revenue generated from on-demand services in Indonesia is projectedto augment to USD ~ million during 2021 from USD ~ million during 2016,achieving double digit growth rate during the review period.

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