Title: Indonesia’s Online Food Delivery Service GoFood—Drivers of Success and Future Strategies
- Publish
- 2023/02/19
- Update
- 2025/08/16
- You can read this article in 6minutes
While Uber Eats launched its services in Japan in 2016, Indonesia’s GoFood had already started operations in Jakarta in 2015. Since then, it has expanded its service areas, increased the number of partner restaurants and users, and has become an essential part of daily life for many Indonesians.
GoFood currently operates in Indonesia and Vietnam. In 2022, the service experienced a breakthrough year, with its transaction volume doubling from the previous year. Let us examine the factors behind GoFood’s strong performance and its future strategies.
– from vehicles to drivers, all arranged for you.
● Interpreter arrangement: from USD 170/day
● Proxy obtaining appointment with local subsidiary (per company): USD 200/company
Future Strategies for GoFood Following a Remarkable Leap Forward in 2022
Image Source: DailySocial “Gojek Ungkap Strategi dan Capaian Bisnis Pesan-Antar Makanan ‘GoFood’ di 2022”
Gojek’s online food delivery (OFD) service, GoFood, saw its transaction volume in Indonesia and Vietnam double in 2022 compared to the previous year, surpassing the industry average growth in Southeast Asia’s food delivery sector.
The following section, based on DailySocial’s article dated January 20, 2023, titled “Gojek Ungkap Strategi dan Capaian Bisnis Pesan-Antar Makanan ‘GoFood’ di 2022 (Gojek Unveils Strategy and Performance of Food Delivery Service GoFood in 2022),” will detail the various features supporting GoFood’s growth and its future strategic direction.
Precautions when conducting an on-site inspection in Indonesia
Some visitors consider, "My primary purpose is to conduct maintenance work at the factory, but the visa application process appears cumbersome. I will simply enter on a Visa on Arrival (VOA) and carry out the work discreetly."
However, there have been numerous cases where entering without the appropriate visa for the intended activities has resulted in significant legal and operational issues. It is therefore strongly advised to obtain the correct visa prior to travel.
Here are the types of visas and their purposes.
Factors Behind GoFood’s Strong Performance
One contributing factor is the increase in the percentage of loyal customers in Indonesia, rising from 32% to 52% year-on-year, as well as a rise in the average transaction value per customer.
Additionally, several services and features performed strongly, including:
Hemat (Savings) Plan
Since September 2022, GoFood has offered two delivery fee options for select orders: “Regular” and “Hemat.” The Hemat plan offers free delivery in exchange for up to 15 minutes of additional delivery time. This plan provides a new option for users who prioritize cost savings over delivery speed.
Similarly, another major player, GrabFood, offers two delivery tiers: “Premium” and “Standard.”
GoFood Plus
GoFood Plus is a subscription-based service. Subscribers pay a subscription fee to receive discounted delivery fees on all orders during a 14-day period. Introduced in 2020, the number of GoFood Plus subscribers grew by nearly 60% in 2022.
GoFood Plus offers three subscription tiers. The most affordable plan costs IDR 19,900 (approximately USD 1.30), valid for 14 days. During this period, delivery fees are discounted by up to IDR 10,000 (approx. USD 0.65) on orders over IDR 40,000 (approx. USD 2.60*), up to three times per day. This means that ordering more than twice in two weeks covers the subscription cost, making it an appealing option for regular users.
*Conversion rate: IDR 15,000 = USD 1 (approximate)
Dapur Bersama GoFood (GoFood’s Cloud Kitchen)
Image Source: REPUBLIKA.CO.ID “Layanan Dapur Bersama GoFood Terapkan Protokol Kesehatan”
A “cloud kitchen” refers to a shared kitchen space designed primarily for food delivery, without any customer seating. While such kitchens are widespread across Indonesia, where food delivery services are booming, it is not uncommon for some to close down due to financial difficulties.
In contrast, GoFood’s cloud kitchens saw a 170% year-on-year increase across Indonesia and expanded to 73 locations in 12 cities.
Increase in Partner Restaurants
Throughout 2022, the number of partner restaurants registered with GoFood increased by 45%.
Menu Innovations
Menus with smaller portion sizes and more affordable pricing have been well received. Additionally, some establishments have created special offers tailored for OFD, such as value sets and bulk purchase discounts.
-
Taxi Troubles
IT company
We had planned to use a ride-hailing app for local transportation; however, due to the combination of the morning rush hour and heavy rain, no taxis were available even after waiting for over 30 minutes. In the end, we arranged a motorcycle taxi on short notice, but heavy traffic caused further delays. As a result, we were forced to postpone one of the two business meetings scheduled for the morning.
-
Interpreter Issues
Cosmetics manufacturer
While traveling from central Jakarta to a client in the suburbs, our freelance local interpreter suddenly canceled. Since English was not widely understood in the area, we were unable to fully convey the finer nuances of our business discussions, which was highly regrettable. We came to realize that it would have been better to engage a professional interpreter through a reputable agency rather than relying on a low-cost freelancer.
GoFood’s Three Strategic Pillars
GoFood has outlined three core strategies for its sustainable growth going forward:
- Strengthen the GoFood brand as an online food delivery service that provides the most enjoyable dining experience by offering personalized recommendations for menus and restaurants tailored to individual users.
- Advance technological development to convert both existing and new users into loyal customers by conducting personalized marketing activities.
- Enhance the efficiency of marketing activities conducted by GoFood’s business partners, aiming to reduce marketing costs while contributing to increased revenue.
Enhancing App Personalization
To turn users into “loyal customers”—that is, enthusiastic repeat users—GoFood emphasizes the importance of personalization.
An example can be seen when launching the GoFood app:
First, various promotional banners appear. Below them, several menu options such as “Nearby Restaurants,” “Discounted Restaurants,” “Popular Restaurants,” and “Popular in [City]” are displayed.
First View on GoFood
As users scroll further, they see recommendations from various perspectives, including “Order Again,” “Recommended in Your Area,” and more. In the morning, breakfast menus are displayed; at noon, lunch options; and at night, restaurants open late into the evening are showcased.
Late at night, a personalized recommendation banner like “Satisfy Your Midnight Cravings” appears.
Moving Away from Promotion Dependency
Catherine Hindra Sutjahyo, Food Sales & Operations Director at PT GoTo Gojek Tokopedia, stated that GoFood not only focuses on user engagement but also continuously supports its business partners—restaurants—by offering solutions to better target customer segments and improve management capabilities.
She added, “Our goal is to increase the number of loyal customers and transition toward a sustainable business that is not reliant on promotions.”
According to DailySocial’s article, GoFood discount vouchers are less abundant than during the service’s early days. Additionally, beyond food prices and delivery fees, users are now charged “service and other fees.” These extra charges may include packaging fees, such as for eco-friendly bags, depending on the restaurant.
GoFood Order Screen Example
In the example shown, a meal priced at IDR 120,000 (approx. USD 8.00) incurs a delivery fee of IDR 14,000 (approx. USD 0.93) and “service and other fees” of IDR 10,000 (approx. USD 0.67*). The discount on the meal is due to the user selecting a value set offered by the restaurant.
*Conversion rate: IDR 15,000 = USD 1 (approximate)
This approach mirrors the strategy seen in major e-commerce platforms. For instance, since 2022, platforms like Tokopedia and Shopee have begun charging a service fee with each purchase.
It can be said that both food delivery and e-commerce platforms are now entering a phase where, after having acquired a substantial user base and brand recognition, they are seeking a sustainable business model that does not rely on promotions.
We create a WhatsApp group, allowing you to contact us anytime for free if any issues arise during your business trip. Unexpected troubles can occur during on-site visits, but with our team-based support, we can resolve problems quickly and efficiently.
-
●Creative agency
I traveled without arranging an interpreter, but when I faced difficulties dealing with the local police, they came to my aid.
-
●Recruitment agency
When I suddenly needed a conference room, I truly appreciated that they arranged one on my behalf.
-
●Cosmetics manufacturer
After finishing drinks with colleagues late at night and being unable to find a taxi, they arranged a car for us, which was a great help.
Competing Services to GoFood
GoFood: The Most Frequently Used Online Food Delivery Service
GoFood’s main competitors are ShopeeFood and GrabFood.
According to a survey titled “The Habit of Online Food Delivery,” conducted by research firm Jakpat in May 2022 among 1,600 respondents, GoFood was the most frequently used service, selected by 39% of respondents. ShopeeFood followed closely with 38%, GrabFood with 22%, and TravelokaEats with 1% (*).
However, GoFood is not necessarily chosen for being the cheapest option.
Respondents in the same survey named ShopeeFood as the service offering the most discounts and promotions (89%), followed by GrabFood (81%), GoFood (76%), and TravelokaEats (60%).
According to a Jakpat representative, while overall service pricing—including food and delivery fees—is a factor in consumers’ decision-making, it is not the only one. The quality of the user experience (UX) is also critically important.
Having entered the market earlier than its rivals, GoFood has the advantage of offering users a sense of familiarity and stability, which translates into a more comfortable user experience.
Indeed, when asked why they frequently use GoFood, 76% of respondents cited “many discounts and promotions,” 55% said “familiarity with the app,” 47% pointed to “variety of payment options,” and 40% appreciated the “wide selection of restaurants.”
*Reference: ANTALA BALI “GoFood, aplikasi layanan pesan antar makanan terbaik”
Fierce Competition Among the Top Three Players
That said, the popularity and market share of the top three food delivery services are quite evenly matched. In the above survey, GoFood led at 39% as the most frequently used service, followed closely by ShopeeFood at 38%. The margin is too narrow to declare GoFood the clear leader.
According to research by Southeast Strategics, in 2021, GoFood accounted for 39% of total online food delivery transaction volume in Indonesia, followed by ShopeeFood at 34% and GrabFood at 27%.
In another survey of 1,200 respondents, 50% identified GoFood as their “top-of-mind” online food delivery service. However, 72% of respondents reported having more than one food delivery app installed on their mobile devices (*).
This suggests that many users install at least two of the three major apps—GoFood, ShopeeFood, and GrabFood—and often compare prices and promotions by adding the same menu item to multiple carts to see which service offers the best deal.
*Reference: antaranews.com “Riset: GoFood pilihan utama, ShopeeFood beri harga paling kompetitif”
C2 (Participation in business meetings and purchasing goods): $230
C19 (After-sales service) / C20(Installation and repair of machinery): $300
D2 (Participation in business meetings and purchasing goods (1-year validity)): $380
E23/E24/E25 (Work VISA): $1,500
Online Food Delivery Services Chosen Despite Higher Prices
Restaurants registered with food delivery platforms are required to pay service fees to the platform, which often results in higher menu prices compared to dining in. Moreover, as noted above, the reduction in promotions and the addition of extra charges are not necessarily welcomed by users.
Some users might hesitate to place an order after seeing the total cost on the app screen. They may then consider the cost of going out themselves—getting stuck in traffic, finding parking, walking on broken sidewalks, enduring the heat or rain, paying for fuel, and so forth.
After weighing these factors, many ultimately choose to rely on their preferred food delivery service, even if it costs a bit more. At present, GoFood is the service most effectively meeting that demand.
