Tokopedia Launches Tokomart, "Online Grocery" Service with "Geo-Tagging" Technology

Tokopedia launches Tokomart, a special page using geo-tagging technology to help people buy groceries in the nearest area. Meanwhile, Tokomart is currently available in Jabodetabek and Bandung.

Tokopedia's Senior Lead Merchant Development, Hartawan Lesmana said that the F&B category has become one of the most popular categories in Tokopedia over the past year with a threefold increase in transactions compared to the pre-pandemic period. Fresh products such as eggs, fish, instant noodles, tea, honey, and local coffee are the most popular among the community.

"Community's high enthusiasm has inspired us to present Tokomart. We also collaborate with various strategic partners, including business players in Indonesia - from Hypermart, LotteMart, Sayurbox, to a number of local MSMEs from various industries - to provide more than 200 thousand product options on Tokomart," he explained in an official statement, Wednesday (3/3).

This service is also supported by geo-tagging technology, therefore, business owners can reach the community faster as this technology prioritizes the closest seller from the buyer's position. Business owners who join Tokomart are those who sell the food & beverage and health & beauty categories.

In the first phase, the latest innovation is available for users in the Greater Jakarta and Bandung areas. "We will continue to add other areas, therefore, this innovation can reach all citizens."

In order to drive transactions, the company is currently holding promotional programs in the form of cashback, discounts, and free shipping.

Before Tokopedia, the grocery segment had been seriously explored by other e-commerce companies, such as Blibli and JD.id. There are also Gojek and Grab. They are working with FMCG brands, supermarkets, convenience stores, and shop owners to expand their coverage. Even Tokopedia's closest competitor, Shopee, has launched Shopee Mart.

Blibli, for example, has developed BlibliMart since 2018 to accommodate daily shopping needs, while at the same time anticipating shifting behavior to online. In Blibli, it's the second most popular category, after electronics in order and GMV. Since last year, Blibli has released the Subscription feature on BlibliMart.

The feature was created based on the Kantar survey "Understanding Life and Trends in Indonesia" in August 2020, it was stated that 80% of respondents became increasingly economical in managing finances due to Covid-19. More in the survey also stated, in meeting their daily needs, more than 60% of respondents are willing to try new shopping methods in order to get the most affordable price.

This market trend is the background for companies to release the Subscription feature, therefore, consumers can save money when shopping for primary needs.

–Original article is in Indonesian, translated by Kristin Siagian