Traveloka closes food, logistics services as travel takes off again

Traveloka, an Indonesia-based online travel company, announced that it is closing its on-demand logistics service Traveloka Send – which reportedly launched just two weeks ago – as well as online food delivery platform Traveloka Eats.

In a statement, a representative of the firm said that the closures are part of Traveloka’s business strategy and priorities. “Along with the rise of the travel sector, we are enthusiastic about this going forward,” they added.

Photo credit: Traveloka

The startup also said that it will guarantee a proper process for employees, partners, and consumers of those services during the closure, according to applicable regulations.

Both Traveloka Send and Traveloka Eats were part of the firm’s diversification efforts amid the Covid-19 pandemic, which significantly impacted the travel industry. Last month, it also closed its e-grocery service Traveloka Mart after operating only for six months.

Earlier this week, the online travel firm raised US$300 million from BlackRock, Allianz Global Investors, Orion Capital Asia, and the Indonesia Investment Authority – the country’s sovereign wealth fund.

At the time, Traveloka CEO Ferry Unardi said that the financing would allow the company to strengthen its balance sheet as the travel industry emerges from the pandemic.

See also: Can Traveloka, AirAsia break into Indonesia’s food delivery duopoly?