Tokopedia Now, a quick commerce service by Indonesian marketplace giant Tokopedia, will officially cease operations on July 16, according to an announcement on the Tokopedia app. The service will be available until Monday, July 15.
Even though Tokopedia Now is available on the Tokopedia app, the on-demand quick commerce service falls under the ambit of GoTo.
GoTo’s head of corporate communications, Sinta Setyaningsih, told DealStreetAsia that the decision [to discontinue Tokopedia Now] is part of a comprehensive business review following the deconsolidation of Tokopedia.
“GoTo remains committed to providing and strengthening on-demand grocery services for our consumers through GoMart, which is available on the Gojek app,” said Setyaningsih.
Launched in November 2021, Tokopedia Now uses geo-tagging technology to deliver daily necessities, including food staples and groceries like meat, vegetables, fruit, and snacks to daily electronics and tools, within a maximum of two hours of placing an order.
Ever since Tokopedia merged with ByteDance’s TikTok in January 2024, the companies have been making strategic shifts and notable changes. In April, GoTo announced that it had engaged in a conditional sale and purchase agreement to divest ownership of the delivery and fulfillment businesses within GoTo Logistics that support Tokopedia.
The termination of Tokopedia Now shows that GoTo wants to sharpen its focus on on-demand services (ODS), which include transportation, deliveries, and fast shopping services such as GoMart and GoShop.
ODS recorded a positive adjusted EBITDA for the second consecutive quarter in Q1 2024, reaching 166 billion rupiah. Although this was lower compared with the previous quarter, it marked a significant improvement compared with an adjusted EBITDA loss of 246 billion rupiah in Q1 2023.
The segment is expected to maintain its strong performance in Q2 2024, driven by product innovations and improved cost management. In a recent interview with DealStreetAsia, Shobhit Singhal, Chief Business Officer at Gojek, said GoTo is also open to a collaboration with TikTok for its on-demand services. Currently, TikTok only serves as a marketing channel for this platform.
On the other hand, ByteDance laid off a significant portion of the workforce at its e-commerce arm in Indonesia last month. This adjustments to the internal structure is part of the company’s strategy going forward, said the firm’s spokesperson at the time.
