ONLINE BASED APPLICATION VS CONVENTIONAL LOGISTIC COMPANY: A CASE OF JNE AND GO-SEND
2018 is undoubtedly the peak of the digital era and it will keep growing in the decade to come. Living in the digital era means everything must be done simply, quickly and preferably online. That is why e-commerce industry has been growing significantly and in Indonesia it shows 17% growth in e-commerce industry in the last 10 years. The growth of e-commerce creates opportunity and challenge at the same time for other companies to innovate their services to meet the market’s demand and logistic companies are one of them. JNE has been one of the biggest player in logistic industry whose 16 million packages were delivered in 2018 alone, and 60-70% of them are from e-commerce. Mohamad Feriadi, the President Director of JNE, stated that the logistic and distribution industries are expected to keep growing as the consumer’s consumption continues.
However, JNE is not the only one player in this growing market. There have been other companies who entered the market with different approaches and offerings. 2017 marked the start of Go-Send Same Day Delivery who offers delivery service right to the front door in the count of multiple hours on the same day. Up to now, there are approximately 200.000 sellers who have used the Go-Send service through e-commerce platform and this trend keeps increasing each month. Beside Go-Send, there are other players in logistic industry that can be considered as competitor, such as Grab Express, J&T Express, even the new player PAXEL has been jumped to this business. This seems to be a challenge for JNE itself, whether it is able to adapt with the new digital era and to cope with the competition within logistic industry in Indonesia.