Grab announced in a press article on 4th June that they have extended GrabMart- its essentials-delivery arm – from two to eight countries in the SEA region (Singapore, Indonesia, Malaysia, Vietnam, Thailand, the Philippines, Myanmar and Cambodia) within just three months. With Cambodia being its new entrant market, GrabMart now has an increased presence in 50 cities across the region.
GrabMart was introduced to aid consumers in response to the coronavirus situation where movement restrictions and buyer anxiety have drastically reduced in-store visits to grocers and essential-products service providers. With more that 3,000 stores as their partners, consumers can now have a fuss-free alternative to obtaining their essentials across a wide range of products from groceries to gifts without have to worry about in-store virus transmission.
Resonating with research showing that consumer's online spending for grocer deliveries have increased in the region, Demi Yu, Regional Head of GrabFood and GrabMart shares that “COVID-19 has accelerated the adoption of on-demand delivery services across Southeast Asia, and we were able to tap on existing technologies, our extensive delivery network, and operational footprint to quickly scale GrabMart across the region. In a post-COVID19 normal, we anticipate demand for delivery services to remain elevated. We will continue to double down on expanding our GrabMart service to support consumers' shopping needs.”
Diversifying their delivery services into the essentials market is a wise move given that Grab's total revenue has been severely hampered by its declining ride-hailing business – the company's core service. In response to the fiscal challenges that Grab is facing, Andrew Chan, Head of Transport for Grab Singapore shared that the company's senior executives will take a 20% cut in their pay and would not be able to extend their financial support to their driver-partners if the nation's lockdown persist beyond 1st June.
With the Singapore government lifting the circuit-breaker restrictions earlier this week albeit in a cautiously phased-approach, it is with hope that the situation will improve as both for Grab and the wider community.
