On demand

Covid-19 pressure cooks Indonesia’s foodtech and cloud kitchens

With many restaurants shutting down, cloud kitchens and food-delivery apps are ideally positioned to realise the foodtech opportunity that the pandemic has created. However, keeping up with a surge in demand for online food delivery isn’t as straightforward as it sounds

Nadine Freischlad, 2 Apr 2020

Indonesia is yet to order a complete lockdown, but many eateries—big and small—have already temporarily shut down

Grab and Gojek both reported a surge in demand for food deliveries in Jakarta, but not all restaurants can instantly switch to delivery-only

This is an opportunity for cloud kitchens, which are optimised for delivery-only, but even they will face a stress test with rising demand

With more people working from home and a limited number of restaurants functional, delivery drivers also have to adapt their strategies while taking care of their health

Indonesia’s capital Jakarta has seen a wave of shopping mall and restaurant closures in the last three weeks in reaction to the novel coronavirus pandemic. The first well-known food-and-beverage (F&B) outlet in the city to feel the brutal impact of the crisis was Amigos, an independent Mexican restaurant.

Indonesia’s first two confirmed Covid-19 cases on 2 March 2 March The Guardian First coronavirus cases confirmed in Indonesia amid fears nation is ill-prepared for outbreak Read more were tenuously linked to the 40-year-old restaurant.

AUTHOR

Nadine Freischlad

Nadine is based in Indonesia. She covers Southeast Asia's super apps, the changing nature of work and employment, and other structural shifts happening as a result of digital disruption.

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