The COVID-19 pandemic has taken a toll on the traditional retail sector. Likewise, it has accelerated the digitization of traditional offline businesses presenting tremendous opportunities for emerging e-commerce startups. Indonesia is one of the countries seeing a surge in online sales in the aftermath of the pandemic.
Indonesia e-Commerce
Spearheading online sales in the country are e-commerce players Gojek, Grab, and Shopee that have poured resources all in the effort of accruing market share in the burgeoning e-commerce industry. Backed by huge financial power, the companies are finding new ways to deliver value for merchants and consumers.
Gojek is one of the platforms that are eliciting strong interest from multi-nationals eyeing a piece of the country’s burgeoning e-commerce industry. The company has already raised $1.2 billion from high-profile investors, including Facebook Inc. (NASDAQ:FB) and Paypal Holdings Inc. (NASDAQ: PYPL).
Amid the uncertainty of COVID-19, Gojek has seen its valuation skyrocket to over $10 billion with operations spanning Vietnam, Singapore, Thailand, and the Philippines. A solid balance sheet has allowed the company to expand its offerings to different services, including Parcel and grocery deliveries.
Competition is increasingly shaping up the Indonesian e-commerce space. Singapore-based Se Ltd Shopee market share is under immense pressure as local rivals led by the likes of Tokopedia and Bukalapak continued to gain share in the market. Alibaba-backed Lazada is also making inroads in the industry.
E-Wallet Competition
Stiff competition does not come as a surprise as Indonesia is dubbed as the most valuable untapped e-money economy. Financial apps have grown by more than 70% over the past 12 months owing to the changes triggered by the COVID-19 pandemic.
Currently, Gojek’s Go-Pay accounts for the biggest market share in the e-money market with a 60% market lead, followed by Ovo with a 29% market share. Ant financial backed by Dana comes a distant third with a 9% market share.
Competition in the e-wallet market is heating up as a new entrant’s eye a piece of the billion-dollar market. Shopee’s ShopeePay is already offering aggressive discounts all in the effort of boosting its customer base.
