On-Demand Business Strength Drives GOTO’s Positive EBITDA Achievement Target

By : Abraham Sihombing | Thursday, March 02 2023 - 07:02 IWST

The ceremony atmosphere of the Initial Listing of Shares of PT GoTo Gojek Tokopedia Tbk at the Indonesia Stock Exchange Building, Jakarta. (Photo: GoTo)
The ceremony atmosphere of the Initial Listing of Shares of PT GoTo Gojek Tokopedia Tbk at the Indonesia Stock Exchange Building, Jakarta. (Photo: GoTo)

INDUSTRY.co.id - Jakarta - The on-demand business segment of PT GoTo Gojek Tokopedia Tbk (GOTO) is one of the main attractions of market players. The positive performance of the service driven by Gojek will encourage the achievement of a positive Adjusted EBITDA target by the end of 2023.


Mirae Asset Sekuritas Indonesia’s Senior Investment Information, M. Nafan Aji Gusta, believes that the latest announcement about Gojek’s business growth shows how competitive GOTO is in the on-demand business. Starting from ride-hailing services, online food delivery, to goods delivery.


The use of all Gojek on-demand services is considered to increase continually supported by economic recovery. “The future is driven by the recovery of people's purchasing power. Both factors will make the on-demand business popular with market players. Moreover, starting in 2025, the annual CAGR growth is estimated at 25%. I think it’s positive,” Nafan told reporters.


In general, as long as there is growth in consumption levels and people's mobility, according to Nafan, GOTO’s on-demand business will continue to grow. “Another supporting factor (in the short term) is the election activities in 2024. This will increase the on-demand business,” Nafan added.


The assessment of GOTO’s on-demand business prospects is in line with the release of Gojek's performance through Gojek Outlook 2023 on Tuesday (28/02/2023). Gojek’s gross revenue grew by 31% year-on-year as of the third quarter of 2022. At the same time, the GOTO on-demand services business made a positive margin contribution.


In terms of transportation services, there was an increase in usage for various community activities. Starting from trips to school or university, as a public transportation hub and airport, shopping centers, to offices. Even the transaction value of business trips through GoCorp increased by 55 times.


In food delivery, GoFood’s loyal customer base grew at more than double the industry average. The proportion of loyal customers in Indonesia increased from 38% to 52%. Correspondingly, the number of GoFood culinary business partners increased by 45% in Indonesia.


Likewise, in the delivery service, GoSend is the number one logistics service that provides a sense of security. The GoSend Best Seller community has grown fourfold to 17,000 members since its launch in March 2022.


Gojek is therefore considered to play a significant role in achieving GOTO’s positive Adjusted EBITDA target by the end of 2023. This is an important milestone on the accelerated path to profitability.


Furthermore, according to Nafan, the challenge for GOTO through Gojek is to be able to realize sustainable growth. So a strategy that involves innovation from the technology side is needed.


“Because technology is constantly moving. There needs to be continuous innovation to improve services to consumers and customer’s satisfaction as well as product variations that continue to be developed.  We see Gojek continuing in that direction and strengthening partnerships,” Nafan continued.


Separately, President of GoTo’s On-Demand Service Business Unit, Catherine Hindra Sutjahyo, in her official statement, revealed, that there are three strategies being implemented by Gojek. First, technological innovation for customer satisfaction by optimizing technology to provide solutions that are more targeted and according to customer needs and preferences.


Second, the variety of products that continue to be developed to encourage the growth of various customer segments. The third strategy is to support partners for long-term impact, in line with the commitment to be a growth partner for partners in the ecosystem through various program initiatives.


“We believe that these three strategies can drive sustainable long-term growth, in line with GoTo’s strategy for integrated ecosystem-based product and service growth,” Catherine added.***

News Comment

Today's Industry

 Huawei ICT Competition 2022–2023 Global Final Closing and Awarding Ceremony (Photo: Huawei)

Jumat, 02 Juni 2023 - 17:40 WIB

Huawei ICT Competition 2022-2023 Global Final Held in Shenzhen — 146 Teams from 36 Countries and Regions Win Awards

The Huawei ICT Competition 2022-2023 Global Final concluded in Shenzhen, drawing to a close the seventh installment of this competition.

President Jokowi inaugurated the 2nd Kretek Bridge, in Bantul, DI Yogyakarta, Friday (02/06/2023). (Photo: BPMI Setpres)

Jumat, 02 Juni 2023 - 15:10 WIB

Inaugurated by the President, the Kretek 2 Bridge Strengthens the Java Southern Route

RI President Joko Widodo (Jokowi) inaugurated the Kretek 2 Bridge, Friday (02/06/2023) morning, in Bantul Regency, DI Yogyakarta. This bridge will support the Southern Cross Road (JJLS) which…

President Jokowi led the Pancasila Harlah Commemoration ceremony, which was held in the National Monument Area, Jakarta, Thursday (01/06/2023). (Photo: Public Relations of Setkab/Oji)

Jumat, 02 Juni 2023 - 14:00 WIB

President Jokowi: Pancasila is the Foundation of Indonesia's Success in Facing Global Challenges

In the midst of the global crisis, Indonesia is one of the few countries that has succeeded in maintaining economic, social and political stability as well as controlling inflation, growing…

Minister of Investment/Head of BKPM Bahlil Lahadalia (Photo: Public Relations of Setkab/Rahmat)

Jumat, 02 Juni 2023 - 13:30 WIB

President Encourages Acceleration of Electric Battery Ecosystem Development

Indonesian President Joko Widodo (Jokowi) encourages the acceleration of investment realization for the development of the electric car battery ecosystem which will be carried out in the Bantaeng…

65 years APO Tokyo

Rabu, 31 Mei 2023 - 15:28 WIB

65th Session of the APO Governing Body in Mongolia: Assessing Progress, Celebrating Milestones, Shaping the Future

The Asian Productivity Organization (APO) successfully concluded the 65th Session of its Governing Body (GBM) with representatives of 19 APO member economies attending in Ulaanbaatar, Mongolia,…