Google Projects Indonesia's Online Transportation Sector to Strengthen in 2024

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Nabilah Muhamad 14/11/2024 14:28 WIB

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According to research by Google, Temasek, and Bain & Company, the gross merchandise value (GMV) of Indonesia's online food delivery and transportation sector reached US$9 billion in 2024, a 13% increa

Projected Gross Merchandise Value (GMV) of Online Food Delivery and Transportation Services in Indonesia (2022-2024)*

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Projected Gross Merchandise Value (GMV) of Online Food Delivery and Transportation Services in Indonesia (2022-2024)*

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According to the *e-Conomy SEA 2024* research report released by Google, Temasek, and Bain & Company, Indonesia's online transportation and food delivery sector strengthened this year.

The research measured growth based on gross merchandise value (GMV), which is the value of goods/services sold within a specific period.

In 2024, the GMV of Indonesia's online transportation and food delivery sector is estimated to reach US$9 billion, a 13% year-on-year (YoY) increase.

According to Aadarsh Baijal, Partner at Bain & Company, this year's growth was influenced by increased service fees.

"Prices for online taxi and motorcycle taxi services have increased slightly," said Aadarsh at the Google office in Jakarta, as reported by *Katadata* on Wednesday, November 13, 2024.

He explained that online transportation companies have started reducing their "money-burning" strategies or large-scale promotions, resulting in service fees gradually returning to normal.

The large number of online drivers is also considered to have contributed to the growth in transactions.

"In the short term, these two factors actually helped revive the sector. A sufficient number of drivers can meet high demand, and as conditions improve, prices are rising again," he said.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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Google Projects Indonesia's Online Transportation Sector to Strengthen in 2024

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