Online Delivery Use: Culinary MSMEs Acknowledge Growth in Income and Number of Stores

For Micro, Small, and Medium Enterprises (MSMEs) in the culinary sector, using online food delivery (OFD) services has shown significant growth.

This finding is based on research conducted by Alvara Strategic. The most striking development is the increase in income, experienced by 88.4% of respondents.

Secondly, reaching customers became easier for 82.8%. Thirdly, there was an increase in the number of orders, reported by 82.7%.

Fourthly, 81.6% of respondents experienced an increase in the number of customers.

Fifthly, with a significant gap, there was improvement in business management skills related to sales and marketing, reported by 26.9% of respondents.

Sixthly, 23.9% of respondents reported an increase in the number of employees. Seventhly, 16.5% of respondents reported an increase in the number of stores. Other developments accounted for 0.2%.

(Read also: Indonesian Food is the Most Popular Category Sold by Indonesian MSMEs in 2022)

Alvara notes that an increase in the number of consumers has a positive correlation with the expansion of food delivery reach.

"Before partnering with OFD, 4 out of 5 MSMEs did not offer food delivery. Therefore, income, the number of orders, and the number of customers increased rapidly after joining OFD," wrote Alvara in its report.

This research measured the development of digitalization among culinary MSMEs in Indonesia using OFD or online motorcycle taxis.

At least 1,937 MSMEs were respondents. They were spread across five major areas in Indonesia: Jabodetabek, Surabaya, Medan, Makassar, and Bandung.

The survey used multistage random sampling with a margin of error of 2.27%. The survey was conducted from August to October 2022.

(Read also: GoFood Helps MSMEs Reach a Wider Market)