Grab to enter on-demand grocery delivery space with GrabFresh service

Grab to enter on-demand grocery delivery space with GrabFresh service

Grab will partner grocery delivery provider HappyFresh to offer the new service from July.

grabfresh
Screengrab of a video showing the new Grab app interface with a grocery delivery option.

SINGAPORE: Technology company Grab on Tuesday (Jul 10) announced it will enter the on-demand grocery delivery business with the introduction of its GrabFresh service.

It will partner regional grocery delivery provider HappyFresh to offer the service via the revamped Grab app, the company said during a media briefing.

More than 100,000 grocery products from more than 50 large supermarket chains and speciality grocery chains will be available via HappyFresh, Grab said in the press release.

GrabExpress drivers and delivery partners can send the groceries to customers' doorsteps within an hour, or at a pre-arranged time. Customers can reject items that are not satisfactory at the door, it added.

grabfresh (1)
Screengrab of a video showing the new Grab app interface with a grocery delivery option.

GrabFresh jostles into an already busy space, with players like Amazon Prime, RedMart and NTUC FairPrice offering similar services.

It will be available as a beta service in Jakarta from this month, and in Thailand and Malaysia by end of this year - all markets HappyFresh are currently in. Other countries like Singapore will follow, Grab added, but it did not reveal a date.

ONE APP TO RULE THEM ALL?

This latest service is an example of how GrabPlatform, another announcement made on Tuesday, can be used as a bridge for other companies to partner the ride-hailing company.

GrabPlatform has a suite of application programming interface (APIs) to allow partners access to its technology in areas like logistics and payments, messaging and user insights, it added.

“Southeast Asia is set to be the fourth largest economy by 2050,” CEO Anthony Tan said. 

“Combining Grab’s assets with the specialised expertise of our partners will enable both Grab and our partners to grow most efficiently and quickly to serve more Southeast Asian customers daily.”

grab ceo
CEO Anthony Tan at a press conference on Jul 10, 2018, announcing the new GrabFresh service. 

Mr Jerald Singh, head of Product at Grab, said during the same media briefing that the goal is for its app to offer all the daily essentials to its users. 

Besides the just-announced GrabFresh service, Mr Singh also said the revamped Grab app will also have a “news feed” feature similar in design to what social media giant Facebook has currently.

With this feed, news, reviews, entertainment and games can be pushed to users according to their preference and other factors like public holidays and weather. For instance, the feed will provide the times to break fast during Ramadan or if one should take a car or bicycle during rainy weather, the company said.

Companies that want to offer their services on the platform will have to agree to a revenue-sharing arrangement with Grab, Mr Tan said, although he declined to reveal details.

He added that the space where these third-party apps reside on the Grab app is like "Orchard Road prime estate", so it will be curated. Companies looking to get on board will have to fulfil certain requirements like offering everyday services or content, providing value to users or utilising the company's payments and logistics features, he explained. 

Its immediate focus is on companies in logistics, new mobility and fintech, the CEO added.

The revamped Grab app for iOS devices will be rolled out in Singapore and Indonesia starting from Tuesday, and on Android devices from Jul 18. Other markets will have access to the updated version by the third quarter of this year, the company said.

Source: CNA/cy

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