Dagangan: Delivering opportunity to Indonesia’s rural economy at scale

Devoteam plays a role as a solution provider to ensure that data will be protected in case of unforeseen problems and helped the customer to scaling fairly quickly on its architecture.

This case study is also featured on Google Cloud website → Dagangan: Delivering opportunity to Indonesia’s rural economy at scale

About the customer

Dagangan is an Indonesian rural commerce platform that provides access to daily necessities at affordable prices to rural communities. Founded in 2019 by a group of friends, Dagangan’s mission is to accelerate Indonesia’s economic journey by empowering communities and providing opportunities for all. The platform focuses on maximizing the potential of remote communities through a tech-powered hub-and-spoke network that enables a nimbler supply chain of high-quality and affordable daily goods. Looking into the future, Dagangan has ambitions to drive its social impact across Southeast Asia. The platform plans to grow from its current market of Java throughout Indonesia’s sprawling archipelago, then to countries such as the Philippines, Vietnam and Thailand “which have similar social structures to ours.”

The Challenges

Dagangan wants to go deeper into rural communities, growing 10 times bigger in the next two years. Looking to the future, Dagangan has ambitions to drive its social impact across Southeast Asia. However, the company was facing some challenges in order to expand.

One of the challenges they are facing is that Dagangan suffered problems with the reliability and availability of its system in a multi-cloud environment where the existing architecture, especially during peak demand times, experienced crashes. Additionally, there were escalating costs associated with provisioning virtual machines (VMs). Therefore Dagangan wants to scale fairly quickly against its architecture where it requires infinite auto-scaling to drive an open expansion narrative.

The Solution

Dagangan transitioned from a legacy VM-based architecture to a combination of GKE and BigQuery. GKE provided auto-scaling capabilities, freeing up the DevOps team from manual provisioning tasks. BigQuery facilitated data-driven workflows, offering insights on user transactions, drop-off locations, inventory, and routing patterns.

Devoteam helped Dagangan find a solution for scaling fairly quickly on its architecture, using GKE and BigQuery, as well as Google Workspace productivity tools, and Google Cloud brought us the seamless automatic scaling we needed to drive an open expansion narrative. Using the Google Cloud AI solution can help Dagangan to drive a dynamic empowerment journey across Southeast Asia.

The Result

Since adopting Google Cloud and Google Workspace, Dagangan has experienced impressive growth, expanding to 50 hubs across Java and reaching over 20,000 villages. The platform has enabled nearly half of the family-owned businesses in its network to increase their revenue by 2x.

The reliability of the platform has also increased, with the percentage of users enjoying a crash-free experience rising from 92% to more than 99%. The platform’s daily active users grew from 3,000 to 5,000 within one year of migrating to Google Cloud.

Dagangan envisions further expansion across Southeast Asia, including countries like the Philippines, Vietnam, and Thailand. The platform plans to leverage Google Cloud machine learning and AI capabilities for security protocols and data-driven insights to power its ambitious growth strategy. Proactive usage of Google Maps Platform APIs is also anticipated to enhance routing and delivery abilities in remote areas.

With the help of Devoteam and Google Cloud, Dagangan is confident that it can continue the rapid growth journey of Dagangan to every corner of Indonesia, and its surroundings, with confidence and peace of mind. Dagangan is also confident that it can achieve that scale.