ClickCease
WORLD

Facebook Inc. (NASDAQ:FB) and Paypal Holdings Inc. (NASDAQ:PYPL) Set sights on Indonesia Burgeoning e-commerce

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.

By reading our website you agree to the terms of our disclaimer, which are subject to change at any time. Owners and affiliates are not registered or licensed in any jurisdiction whatsoever to provide financial advice or anything of an advisory nature. Always do your own research and/or consult with an investment professional before investing. Low priced stocks are speculative and carry a high degree of risk, so only invest what you can afford to lose. By using our service you agree not to hold us, our editor’s, owners, or staff liable for any damages, financial or otherwise, that may occur due to any action you may take based on the information contained within our newsletters, website, twitter, Facebook or chat. We do not advise any reader to take any specific action. Our releases are for informational and educational purposes only. Never invest purely based on our articles. Gains mentioned on our website, twitter, Facebook, and on our website may be based on EOD or intraday data. We may be compensated for the production, release, and awareness of this article. We will disclose any and all compensation on the article page. This publication and its owner never hold positions in the securities mentioned in our articles. Our information may contain Forward-Looking Statements, which are not guaranteed to materialize due to a variety of factors. We do not guarantee the timeliness, accuracy, or completeness of the information on our site. The information in our disclaimers is subject to change at any time without notice. We are not held liable or responsible for the information in press releases issued by the companies discussed in these write-ups. Please do your own due diligence