The concept began to flourish in Jakarta following rising demand for food delivery.
- Food delivery services have surged significantly over the past few years fuelled by a rise in ‘super app’ development. The recent pandemic has also accelerated home-delivery transactions following dine-in restrictions during the lockdown period.
- To capture demand, platforms have begun to optimizetheir food merchant directories and improve delivery strategies by introducing a new F&B business model called cloud kitchens which focuses solely on online sales.
- The two biggest super app players in Indonesia, Gojek and Grab, recently expanded their cloud kitchen business following the success of their food delivery platforms, GoFood and GrabFood.
- Prior to cloud kitchens, delivery from malls was found to be difficult because of the time it would take for a driver to park, enter the mall, order the food and deliver. A complementary kitchen which only takes delivery orders helps reduce delivery times from restaurants to consumers.