The Culinary Sector is Thriving with OFD

The culinary sector is thriving with online food delivery (OFD). The presence of OFD makes it easier for micro, small and medium enterprises (MSMEs) to grow in this sector. This service helps MSMEs reach a wider range of customers efficiently.

This fact comes from Alvara Research Center’s research entitled ‘Digitalization of MSMEs: The Impact of Digital Platforms on Culinary MSMEs’. This research shows that selling through the OFD digital platform accelerates MSME sales growth. This growth is 1.9 times greater than selling offline alone. On average, the OFD platform contributes for more than half (56.8%) of the profits of MSMEs that partner with the platform.

According to finance.detik.com, CEO and Founder of Alvara Research Hasanuddin Ali explained that culinary MSMEs are one of the largest sectors. This sector contributes around 41% of the total gross domestic product (GDP) of the creative economy. He said competition in this sector was quite tight due to the low barrier to entry.

“Therefore, culinary MSME entrepreneurs need various efforts to develop their business. Such as through more efficient business operations and wider customer reach. Selling online through a partnership with the OFD platform is the right solution,” he said in his statement (27/11/ 2022).

Hasanuddin explained, that this research also examined which OFD platforms are consider the most profitable. As a result, GoFood from Gojek took first place. GrabFood from Grab took the second place, and Shopee Food from Shopee took the third place.

According to culinary MSME partners (respondents), GoFood is still superior to other platforms. This is seen from the aspect of platform development, efficiency,  entrepreneurship training programs offer,  and having the fairest service fees. This platform is often used to create self-promos.

“Almost all culinary MSME partners (96.5%) surveyed said they would continue their partnership with the OFD platform. They said that they had directly experienced the benefits of a partnership with the OFD platform. In fact, 1 out of 3 culinary MSME partners would actively recommend it to other culinary MSMEs,” explained Hasan.

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