Online Food Delivery and Transportation Services Projected to Reach US$16.8 Billion by 2025

Research by Google, Temasek, and Bain & Company shows an increase in the digital economy's value from online transportation and food delivery services until 2025. This is reflected in the total gross merchandise value (GMV) of US$6.9 billion in 2021.

This value increased by 35.3% from 2020, which was US$5.1 billion. The GMV of online transportation and food delivery services is then projected to increase again to US$16.8 billion in 2025.

The Covid-19 pandemic encouraged consumers to switch to a new lifestyle. There were 21 million new digital consumers during the pandemic in 2020 and the first half of 2021.

The potential of the digital economy is increasingly bright, especially from food delivery services. This is evident from consumer assessment of digital food delivery services. As many as 72% of consumers stated that online food delivery services make daily activities easier and more practical. This percentage is the highest among other services. Furthermore, 41% of respondents consider online food delivery services part of their routine.

However, the report mentions a slowdown in the compound annual growth rate (CAGR) of online transportation and food delivery services. The CAGR in 2025 is projected to be 25%, slowing down from 36% in 2021.