TikTok Eyes Expansion into Hospitality Sector; PHRI Comments
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19 July 2024 07:46 WIB
TEMPO.CO, Jakarta - TikTok, the popular short-video platform owned by ByteDance, is considering expanding its services into the food delivery sector, according to a report by the South China Morning Post (SCMP) on July 12, 2024. This expansion may include offering restaurant, hotel, and airplane vouchers. This new service offering would reportedly target users in Southeast Asia, with Indonesia and Thailand serving as the initial launch markets.
An anonymous source in Indonesia confirmed that TikTok plans to partner with third-party service providers to offer flight and hotel vouchers. However, details regarding these potential collaborators remain undisclosed.
Hariyadi Sukamdani, Chairman of the Indonesian Hotel and Restaurant Association (PHRI), expressed cautious optimism regarding the news. He acknowledged the potential for increased sales and customer traffic within the hospitality industry but noted the absence of direct communication from TikTok about collaboration.
“This would indeed make it easier for consumers to purchase products or services. It also represents an additional sales channel for businesses,” Hariyadi said via WhatsApp to Tempo on Wednesday, July 17.
While acknowledging the lack of formal contact with PHRI, Hariyadi expressed his belief in the inevitability of collaboration. “TikTok hasn't contacted PHRI yet but we're confident a meeting will take place eventually. The specifics of when and where remain unclear.”
TikTok Indonesia has declined to comment on these expansion rumors. “We can't share anything yet because the information remains uncertain,” said a TikTok Indonesia representative to Tempo on Wednesday, July 17.
December 2023 saw a successful collaboration between TikTok and Indonesian digital giant PT GoTo Gojek Tokopedia Tbk (GOTO). This partnership aimed to strengthen Indonesia's digital economy, focusing on empowering and expanding markets for national Micro, Small, and Medium Enterprises (MSMEs).
The collaboration involved a significant investment by TikTok in GoTo, exceeding US$1.5 billion. This partnership also led to the merging of TikTok Shop with GoTo's Tokopedia platform.
Indonesia's position as the second-largest TikTok user base globally since July 2023 likely plays a role in the platform's potential Southeast Asian expansion plans.
With an active user base exceeding 1 billion globally, TikTok Shop is projected to generate annual revenue of around US$4 billion or approximately Rp64 trillion. According to Yipit Data Analytics Firm, contributions from Southeast Asian markets significantly impact these figures.
Overall, this rumored expansion signifies a bold ambition for the ByteDance-owned platform's future.
TAMARA AULIA
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