Southeast Asian super-app Grab now derives more than 50% of GMV from food and financial services, moving it away from its roots as an Uber-style ride-hailing business. Grab has been steadily building out food delivery in key markets like Indonesia and has lately made big bets on Cloud kitchens and delivery partnerships with FMCGs as well as aggressively ramping up its ePayments services.
The GrabFood delivery service is now available in Indonesia, Singapore, Malaysia, the Philippines, Thailand and Vietnam and covers over 220 cities. According to Lim Kell Jay, regional head of GrabFood, “The margins for food delivery are better than ride-hailing. Based on what we are seeing in other markets, it’s very possible that delivery can be much bigger and a more profitable business than ride-hailing.”
Source: South China Morning Post