AirAsia Super App Indonesia expands beyond flights

Capital A, which was formerly known as AirAsia Group, is actively establishing other businesses in Indonesia in order to diversify its portfolio and increase the amount of revenue it generates from sources other than airlines.

In its most recent round of growth, the firm intends to extend its online ride-hailing services to the lucrative tourist destination of Bali, Indonesia, in time for the end-of-the-year vacations. These services will be accessible via the company’s smartphone application.

This action is in keeping with the plans that AirAsia has for its app, which it has dubbed the “AirAsia Super App.” Alongside its headline flight offers, the app also enables users to make reservations for hotels and activities. The overall goal of the app is to serve as a one-stop shop for travelers.

According to Mr. Delly Nugraha, country head of AirAsia Super App Indonesia, when speaking to CNA, he said, “Our DNA is in the travel business. We are highly knowledgeable about the travel industry, we are familiar with how travelers act, and we are aware of the ecosystem components that travelers anticipate having when they go on vacation.”

Mr. Nugraha stated that preparations are being made to hire drivers for its Bali ride-hailing fleet, with a focus on those individuals who are service-oriented in order to improve their connection with tourists.

The Food Delivery Service

This new endeavor follows closely on the heels of the company’s launch of its meal delivery service, AirAsia Food, which took place in March of this year in Tangerang, West Java, and then in June took place in Jakarta. Since that time, thousands of new merchants have signed up to use the site.

A beverage company called Flash Coffee, which is based in Singapore, is one of the merchants here. The company entered the Indonesian market in 2020, just before the COVID-19 epidemic, and was able to grow swiftly despite the pandemic thanks to its use of technology, which allowed customers to easily place orders online and pick them up in a hurry.

Flash Coffee, which describes itself as a “tech-enabled” coffee company, focuses a significant priority on digitally enhancing its operations and improving its delivery services. The percentage of total transactions that come from online sales is currently at 65 percent.

Grace Surya, who is in charge of marketing for Flash Coffee in Indonesia, stated that the coffee chain use technology to track the behavior of customers, and that they anticipate a sustained need for food delivery.

Ms. Surya explained that “we have had this pandemic for roughly three years,” and that “then we keep on monitoring the market behavior shift, particularly with regard to food delivery.”

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Chicken chain restaurant Another vendor on the AirAsia Food platform, Ayam Gepuk Pak Gembus, offers delivery of a classic Indonesian staple dish called “smashed” fried chicken. This dish is fried chicken that has been marinated with herbs and is eaten with rice and sambal chili.

The business has recognized the significance of online delivery platforms and is making preparations to start its very own sometime in the following year.

“If we have our own app, we will be able to monitor the behavior of our clients. Is this a returning customer that places multiple orders? And we are able to do this monitoring in real time. Which products have the highest number of sales, which have the lowest number of sales, what do customers prefer, and what kinds of promotions attract customers?” The operational director of Ayam Gepuk Pak Gembus, Maria Barnomo, made the statement.

The Advantage

Compared to its more experienced digital peers such as Grab and GoTo, the AirAsia Super App Indonesia is still relatively young. As a result, observers believe that the company may have to resort to a cash burning strategy in order to attract partners and customers.

Grab and GoTo have both expanded their operations in Indonesia beyond their primary focus, which was on providing ride-sharing services. They have also entered the food delivery business, and according to an article published by Bloomberg that quotes Momentum Works, they are expected to hold 92 percent of Indonesia’s food delivery market in the year 2021.

However, AirAsia, which is a low-cost airline that has a substantial presence in the region, has the advantage of an existing customer base because it already has customers.

If we investigate AirAsia, we will find that it is a highly intriguing subject because the company already has a clientele. It merely needs to extend the scope of its application and add some additional capabilities. According to Heru Sutadi, the executive director of Indonesia’s ICT Institute, this makes it easier for them in comparison to businesses who enter the market without any existing customer base.

Capital A has already invested more than $40 million in its super app business, and the company has a goal of securing an additional $100 million by the end of the next year.