Grab, Gojek both claim to be number 1 in Southeast Asia food delivery battle

A GrabBike motorcycle driver, left, and a Go-Jek motorcycle driver wait for orders in Jakarta, Indonesia, on Sunday, Aug. 13, 2017. Photographer: Dimas Ardian/Bloomberg

Amid heated competition to dominate the Southeast Asian market, the region’s rival decacorns Grab and Gojek have pushed out different sets of research to back their respective claims to be the number one player in the food delivery business in the region’s largest market of Indonesia.

Jakarta-based Gojek claims, according to its internal research, that its Gofood service boasts a 75% market share in its home market. SoftBank-backed Grab, however, claims that its food delivery market share is almost 50%.

Moreover, Grab claims that its GrabFood service is the most often used among its peers, pointing to data by research firm Kantar.

“According to consumer research by Kantar, GrabFood is the #1 most often used food delivery platform in Indonesia. 57% of Indonesians said GrabFood is their most often used food delivery platform, followed by the next competitor brand at 42% (Q2 2019, April – June),” the company said in a statement.

Still citing Kantar, Grab said GrabFood is the most often used food delivery platform in six Southeast Asian countries that the service is available in namely Indonesia, Singapore, Malaysia, the Philippines, Thailand, and Vietnam.

It claims to be the “only truly regional player providing food delivery service across Southeast Asia”. From June 2018 and June 2019,  GrabFood claims its gross merchandise value (GMV) in Southeast Asia grew 900%.

Meanwhile, on its regional play, GoFood, which has operations in Indonesia, Thailand, and Vietnam, says that the amount of transaction through its platform has doubled to over 50 million transactions per month across Southeast Asia.

Having initially started off as companies operating in the ride-hailing business, both Grab and Gojek have various service and business lines on their platform leveraging on the stickiness of the transportation services.

Food delivery, along with payments, is known to be two of the biggest business lines for the two companies.

Gojek was the first to launch a food delivery service in 2015 to tap into an area which had yet to see innovation from technology companies. With its mass supplies of motorbike taxi drivers, Gojek enables customers are able to order food through its app and have it sent to their homes by drivers closest to the restaurant.

GrabFood, which runs an identical model to its rival, was launched beta a year after.

As Gojek and Grab continue to aggressively raise capital, the region can expect more growth from the two companies in this space as they continue to square off.

Gojek has hit the first close of its Series F, targeted at around $2 billion, at a nearly $10-billion valuation from investors including Provident Capital, Google, JD.com and Tencent.

We had earlier reported that Grab was looking to raise up to $5 billion in the ongoing Series H round amid increased investor interest. Investors in the round include Toyota Motor Corporation, Oppenheimer Funds, Hyundai Motor Group, Booking Holdings, Microsoft Corporation, Ping An Capital, and Yamaha Motor.

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.