What Go-jek Needs to Learn from Deliveroo and UberEats
Rather than being left behind from cutting-edge technology, Indonesia has arisen as digital user for the last decade. Almost half percent of the population (1) own smartphone and active user of social media. Interestingly, Indonesian who has consumptive characteristic began to utilise digital apps in daily basis. One of the most popular apps is Go-Jek. Try to ask everyone in the country, most of them will know Go-Jek and use it everyday.
Nadiem Makarim, Go-Jek CEO, claimed that one of its product Go-Food became the biggest delivery services in the world (2). However, as Go-Food user, I think Go-Jek needs to upgrade their service by adapting Deliveroo or UberEats’ system. Therefore, Go-Food might not just dominate Indonesian or SE-Asia market but the whole world.
I’ve been using Go-Food since Go-Jek gained popularity in the late 2015s. In 2017, I had the opportunity to study abroad in UK. At first, I thought there was no more convenient delivery service than Go-Food but turned out I was wrong. There were options like UberEats and Deliveroo that delivers food in more sophisticated and convenient way rather than Go-Food.
Deliveroo was founded in 2013 and has gained £129 mio revenue in 2016 (3). Deliveroo allows restaurants to access customers in locations without needing High Street premises, thereby set-up costs could be reduced compared to another full-service restaurant. Deliveroo has reached 650% growth year on year since it was built 6 years ago and their revenue rise by 30% each year (4). Therefore, it is interesting to compare Deliveroo and Go-Jek food delivery (Go-Food). With such systems that could boost Deliveroo’s revenue, Go-Jek might take out some ideas and make their dream to be the most successful delivery service in Asia into reality. Then, what Go-Jek needs to learn from Deliveroo or UberEats, the answers can be found below:
Web-based: Deliveroo can be accessed through desktop website, somehow it’s helpful for a person who doesn’t always access their phone. The website can be accessed instantly, it is incorporated with tracking system as well. Unlike Go-Jek apps that is specially tailored for mobile device and cannot be accessed through desktop. Although society nowadays more attached to their phone, it will be better for Go-Jek to start develop desktop UI/UX to optimise their food delivery service for desktop user.
Ease of payment: Deliveroo payment system provide direct debit from either credit card or debit card. This system is adapted because most of UK citizen hold debit/credit card with built in CCV/CVV. Unlike Indonesia which barely use debit/credit card, except mid-end society. Top-up fintech is quite popular, e.g: Go-Pay, OVO, Dana, or LinkAja. These payment method somehow helpful for Indonesia’s financial culture. On the other side, it increase consumptive behaviour and obscure individual’s financial management since they have to distribute the fund to separate accounts. Moreover, Go-Pay charged additional fee for each top-up transaction which is quite inconvenient for the user.
Clustering area: Deliveroo and UberEats UK works in clustered area. These delivery services only provide menu from restaurants within reach. For example, East part of London restaurants won’t be available for West London customer. The cluster is designed to the closest range of user. Therefore, Deliveroo and UberEats are able to deliver the food under 15 minutes. This service hasn’t been available in Go-Food. Go-Food provides wide range of restaurants without clustering. Hence, the customer will be able to choose the furthest restaurant from their location. It might be more beneficial for customer, on the other hand it is quite costly for the drivers. One of the implications of non-clustering system is delivery delay that could take more than half hour and it’s pretty unsatisfying.
Eco-friendly: Since UK concerns about environment issue, most of business in UK started to implement eco-friendly effort. Deliveroo or UberEats drivers are usually cyclist. Since the distance between restaurants and the customer is within reach, it is easier for the driver to cycle rather than riding a bike. Besides, it will also cut driver’s cost for parking and fuel. It gives advantage for both party and of course, the environment. This idea is possible for Indonesia’s market but might be not feasible. Indonesia’s traffic is quite different compared to UK. However, if Go-Food finally decides to start clustering area, this idea might be helpful to reduce pollution and traffic jam particularly in big cities such as: Jakarta, Surabaya, Malang, and Bandung.
Fast & reliable: Deliveroo and UberEats have efficient technology that is helpful for the merchant and the drivers, this system does shorten waiting time. The UK’s delivery services provide device (tablet) that will receive order given by the customer in real time. Just imagine that the order is sent for both restaurant and driver. The device will allow the restaurant to accept or refuse the order, it is also equipped with confirmation options. For example, if one menu is not available the restaurant will be able to tell the customer through the device to change their order or cancel the order. Once the order is accepted and received, the restaurant will cook it and it will be ready once the driver arrives. Unlike Go-Food system that requires the drivers to order manually in the restaurant whilst confirming the customer. Go-Food drivers still have to wait the order to be ready and this prolong delivery time. Another problem arouse when the ordered menu isn’t available, the drivers need to change the order manually. Moreover, drivers need to pay the food bill first then Go-Food will reimburse later. There’s no reimbursement for Deliveroo or UberEats driver since the food has been paid by the customer, unless there’s miscommunication or human error in the process.
Split bill: This feature actually does not exist on Deliveroo or UberEats but does exist in Uber-ride. But this might be a good idea for Go-Food to improve their delivery service. Indonesian office workers usually order foods or beverages in bulk by using one account. It might be simpler in terms of payment if Go-Jek provides split bill feature. Therefore, the payment can be automatically distributed for the user. And using this feature, it allows Go-Food to direct debit each individuals’ account. There won’t be anymore debt between friends even though it was just Rp 1. Sounds great?
As Go-Food user, I already felt the ease of Go-Jek’s system but it still needs more improvement to be more convenient. So far, I could say that current Go-Food system sometimes inflict the driver’s financial loss. There were lots of cases involving fake order that drivers must bear, one of them is Julianto case that went viral couple years ago(5). The system that is implemented by Deliveroo and UberEats in the UK might be safer for each stakeholder, the company, the customer, and the driver. Thus, it is up to Go-Jek’s innovation for the next few years to achieve their vision.