Almost half of Indonesia’s connected consumers utilise ride hailing apps for their daily commute
The online population in Indonesia has warmly welcomed the introduction of ride hailing services, as confirmed by a recent GfK survey. According to latest insights from the Crossmedia Link study, usage of ride hailing apps amongst internet users in the country has been trending up in the past 14 months, doubling its penetration level to hit 48 percent in June this year.
Price and convenience have emerged as the two key factors driving usage of app-based transportation services, according to a separate study1 conducted to obtain more in-depth insights on consumers’ attitudes and behaviors towards ride hailing apps. When asked for the reasons why they prefer using such apps over conventional taxi services, 61 percent of respondents cited value for money and efficiency as most important factors, and 58 percent attribute frequent usage to ease and convenience of ordering directly from their smartphone.
“Smartphones are the gateway to the internet for over 80 percent2 of Indonesia’s online population who are using their mobile devices to go online on a daily basis,” said Karthik Venkatakrishnan, Regional Director, GfK Asia. “The intensifying demand for smartphones3 in the country translates to the possibility that increasing number of consumers are actively utilizing their smartphones to embrace their new digital lifestyle.”
The study also tracks consumer usage of the three main ride hailing apps in the country—Go-Jek, Grab, and Uber. While overall usage of these services has been on a consistent uptrend, Go-Jek has registered the highest growth, followed by Grab, then Uber. Go-Jek and Grab are the two brands reported to enjoy stronger consumer loyalty as the users of these respective brands tend to utilize only one app instead of switching between the three brands.
For instance, 59 percent of consumers are exclusive users of one app, while 30 percent use two apps, and the remaining 11 percent use all the three apps—findings revealed. Majority of respondents (70 percent) claimed that discount amount is the main deciding factor when choosing which app to use for their commute.
“These findings highlight the price sensitivity of the market and the importance of having an optimized marketing mix that includes promotions and sales discounts to build market share and brand preference among consumers,” commented Venkatakrishnan. “With access to the relevant research insights on consumer behavior and purchase decisions, brands can easily tailor their offerings to target consumers accurately and win them over effectively.” Venkatakrishnan concluded.
About GfK Crossmedia Link and Ride Hailing study in Indonesia
The GfK Crossmedia Link is an innovative technique to capture and quantify consumers’ cross-media digital consumption behavior across smartphone, tablets, and mobile PCs. Representing Indonesia’s online population, the panel consists of 6,000+ active panelists across 5 major cities in Indonesia, aged between 13-55 years.
The Ride Hailing survey was conducted via phone interviews on July 27-29, 2017 across 5 cities (Jakarta, Bodetabek, Bandung, Semarang and Surabaya). Its objective is to understand consumer attitude, behavior and motive towards using the ride hailing platform. Popular ride-hailing examples in Jakarta are Grab, Go-Jek and Uber.
· Cross Media Link (GXL) Indonesia Report, April 2016 – June 2017
· 1 Ride Hailing study
· 2 Connected Asian Consumer study 2016
· 3 Point of Sales tracking period: June 2016 – May 2017