Collaborated with SiCepat, M-Cash Enters Food Delivery Business
The digital kiosk startup PT M Cash Integration Tbk has started to explore the food delivery business. Through PT Digital Maxima Kharisma (DMK), M Cash launched the DigiResto platform in collaboration with PT SiCepat Ekpres Indonesia (SiCepat).
The new platform will facilitate consumers to access food and beverage products. DigiResto offers a choice of on-site, take away, or delivery. Micro, Small, and Medium Enterprises (MSMEs) can also engage and communicate with their customers on the platform. More than 2,200 active partners (merchants) throughout Indonesia have used DigiResto until today.
DMK Director Mohammad Anis Yunianto said the platform relies on an order and payment system with a competitive cost structure for MSMEs. To develop delivery services, DMK collaborates with SiCepat in serving last-mile deliveries.
“To help improve the efficiency of the delivery chain and the cost structure of our food ordering solution,” Anis said in a press release on Tuesday (11/1). President Director of M Cash Martin Suharlie said the company created the platform to tap the business potential of food delivery during a pandemic. “
The Promising Potential of a Food Delivery Service Business
SiCepat Chief Executive Officer The Kim Hai realizes the promising potential of the burgeoning food delivery business in Indonesia. He also sees the partnership with DigiResto as an opportunity to develop further from the main package delivery service by becoming a logistics provider for food ordering solutions developed by the MCAS group.
“Together with the growing DigiResto, we hope to provide services for our customers as a provider of one-stop last-mile delivery for packages and food or drinks,” he said, Wednesday (2/12/2020).
In addition, he also believes that the expanded capabilities of courier services will have the potential to result in increased overall fleet utilization. He hopes to continue to develop partnerships with the MCAS group and synergize MCAS technology offerings with the logistics network.
The global public health crisis has shaken many industries to their main business, including the food and beverage industry, “he said. SiCepat Chief Executive Officer The Kim Hai said, the potential for the food delivery business is currently growing in Indonesia.
“We see this partnership as an opportunity to expand beyond our main package delivery service,” he said. Food delivery services and delivery of goods are indeed in demand during the corona pandemic. Startups are also competing to enter this line of business.
“People affected by the corona pandemic have experienced changes in behavior,” said Chairman of the Association of Venture Capital for Indonesian Startups Jefri R Sirait, last June (3/6). People who apply social restrictions or physical distancing use online services more often.
Technology companies are also innovating and developing their products to make them more attractive to consumers. Not only Gojek with GoFood or Grab with GrabFood which is the pioneer of food delivery services, during the pandemic, the channels for shopping for food have also varied, from e-commerce, to social media such as Instagram, WhatsApp and Facebook.
Food Delivery was Trending even before the Pandemic
Before the pandemic, food delivery had become a trend. Nielsen Singapore, in its report last year, stated that food delivery services are starting to become a trend in Indonesia because of their large business potential.
Nielsen Singapore surveyed 1,000 respondents in Jakarta, Yogyakarta, Bandung, Surabaya, Balikpapan, Medan and Makassar. 95% of them bought ready-to-eat food during the three months that the survey was conducted.
Of this number, 58% of them use food delivery services via applications such as GoFood and GrabFood. On average they order 2.6 times as much per week. Reflecting on this data, according to him, food delivery services are very potential.
There are several reasons that this service is increasingly in demand. Mainly, because it saves time and effort. Then, there are lots of promotions. In addition, there are many payment options and types of food.