Grab Holdings Limited, the dominating superapp of Southeast Asia, has recently procured a majority interest in Jaya Grocer Holdings Sdn Bhd, one of the most sought-after mass-premium supermarkets in Malaysia. Grab is looking to expand their grocery delivery services in Malaysia with this acquisition. Furthermore, they plan to incorporate GrabPay and GrabRewards in all Jaya Grocer physical stores, thus increasing convenience for customers.
The demand for on-demand grocery delivery services has increased due to prolonged movement restrictions and consumer concerns about safety and hygiene. During the pandemic, an impressive 64% of Southeast Asia’s internet users have opted for online grocery shopping. This has caused a significant uptick in its adoption rate and shows no sign of slowing down. Despite the increasing interest in online grocery shopping, Southeast Asian markets account for only a small fraction of the global grocery spend. Still, it is estimated that with a 10% penetration rate, online grocery sales alone could be worth up to US$50 billion in Gross Merchandise Value – similar to more advanced markets.
GrabMart’s grocery & specialty retail marketplace has had consecutive quarters of growth in 2021, while Jaya Grocer saw double-digit yearly revenue growth between 2018 to 2020—benefitting Grab’s bottom line.
Grab’s acquisition of Jaya Grocer has enabled it to bring a variety of retail stores onto its platform and get access to their vast supplier network. This not only helps the company expand its Grab Supermarket product line but also keeps costs low. By doing so, it will not only help to improve the unit economics & affordability of grocery delivery services, but also to benefit the customer & business.
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Anthony Tan, Group CEO and Co-Founder of Grab, said that the partnership with Jaya Grocer will further accelerate the growth of the groceries delivery business. Teng Yew Huat, Founder of Jaya Grocer, also expressed confidence in Grab’s ability to execute in a hyperlocal way, which will enable Jaya Grocer to reach new heights.
By partnering with retailers, Grab is scaling up the GrabMart marketplace to offer more products and convenience to customers. They are dedicated to making groceries more accessible and easier to acquire.
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