Traveloka Shuts Down Pandemic Business Launches to Refocus on Travel

By TIN Media | Technology Published 2 months ago on 6 October 2022
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INDONESIA:

Unicorn of Indonesian tourism as it gets ready for the post-Covid rebound of its travel business, Traveloka will cease operating its online food delivery platform Traveloka Eats and on-demand delivery service Traveloka Send.

A Traveloka spokeswoman confirmed this on Tuesday, stating that "we are suspending Traveloka Eats and Send as part of our business strategy and prioritization. We are optimistic about the future when travel resumes.

Indonesia reinstated the visa-on-arrival program for visitors from 86 countries starting on September 15 as Southeast Asia charts its course towards a tourist rebound with the relaxation of travel restrictions.

Around 1.7 million international visitors came to Indonesia between January and August, according to the central statistics office of Indonesia, Badan Pusat Statistik. This is a 2,028 percent increase over the same period in 2021.

Traveloka has stated that the transition process will be carried out following the relevant legislation, and the business will work closely with its staff, service partners, and customers throughout the process.

Six months after its March launch, the online grocery service Traveloka Mart has also been shut down by the online travel startup that has successfully evolved into a lifestyle super app.

The three businesses—Traveloka, Eats, Send, and Mart—were all a part of the travel agency's post-Covid-19 diversification attempts. The on-demand logistics business, Traveloka Send, has just recently been introduced.

Traveloka Eats, which began as a portal for evaluations and listings of restaurants in 2018, transitioned to a full-fledged food delivery service during the pandemic.

Days after receiving a $300 million cash infusion from the sovereign wealth fund Indonesia Investment Authority, BlackRock, Allianz Global Investors, and other international financial institutions, Traveloka announced that it would shut down its Eats and Send service.

The investors praised Traveloka as a strong leader in Southeast Asia's online travel market and claimed that the financing will help the expansion of the travel industry's digital ecosystem, enabling the company to continue growing and solidifying its position as a regional technological leader.

Ferry Unardi, the CEO and co-founder of Traveloka, had commented on the funding, saying it will enable the online travel agency to strengthen its financial sheet while continuing to concentrate on its core business and expanding for the future.

Traveloka has effectively transformed itself in recent years from a purely technological business into a larger services company that offers financial technology through a series of acquisitions. Among the first investors in Traveloka were the Chinese online retailer JD.com, the Expedia Group, and the sovereign wealth fund GIC of Singapore.

The company, which was founded in 2012, intended to go public last year through a special acquisition company, but that plan fizzled out.

Without specifying the amount of the investment, Thailand-based public company PTT Oil and Retail Business likewise stated in July that it would invest in Traveloka.

Shirley Lesmana, chief marketing officer of Traveloka, stated last month at the Skift Global Forum in New York that the company's switch from a travel price comparison search engine to a travel and lifestyle app had aided in customer acquisition and retention, leading to 100 million downloads of the lifestyle super app


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