With Grab now having completed its acquisition of Jaya Grocer Holdings, the possibility of these two combining and taking grocery shopping to a whole new experience in Malaysia is well likely.
Grab with all its extensions; GrabPay, delivery, GrabMart the synergy seems to be appropriate, now all these services can be extended to the physical stores and vice versa. In fact Antony Tan Group CEO and Founder of Grab has announced the immediate roll out will be GrabPay and GrabRewards across all Jaya Grocer physical retail stores.
According to a press statement, Grab said that the acquisition comes at a time where demand for on-demand grocery delivery services is on the tear. The MCO and continued concerns of variants is giving consumer that apprehension to hit the supermarkets, even though things are starting to ease up on the restrictions, there are a selected number of community who will still be apprehensive. Having tried and tasted the experience on online shopping, Malaysians are no longer alien to the concept and are becoming more adaptive to it.
Based on statistics, 64% of Southeast Asia’s internet users purchased groceries online at least once during the pandemic, yet online grocery transactions only accounted for approximately 2% of the total grocery spend. It is estimated that online grocery in the region could grow to US$50B in gross merchandise value – the size of the entire e-commerce market today – at a 10% penetration rate similar to advanced markets.
Data sets that got Grab’s attention, GrabMart, the on-demand groceryservice by the platform recorded three straight quarters of growth in the first three quarters of 2021. Physical store Jaya Grocer, also saw continued strong growth, with revenues growing at double-digit rates year-on-year from 2018 to 2020, and is EBITDA accretive to Grab’s business.
Here’s what Anthony had to say about the acquisition, “It is our vision to make on-demand groceries more accessible for everyone. By combining our extensive on-demand delivery fleet and capabilities, with Jaya Grocer’s strong retail presence and supplier network, we can have these quality products delivered to more homes even faster.”
Although there are only 40 stores under the Jaya Grocer brand in Klang Valley, this could be expanded under the Grab umbrella, with its extensive delivery arm one supermarket in every neighborhood is a possibility. Customers would expect quick delivery and can only be possible if there’s one nearby.
Ten Yew Huat of Jaya Grocer believes, Grab’s strong track record and ability to execute in a hyperlocal way could take Jaya Grocer to new heights.
The plan has been set and execution is all that is left, Grab will be relentless on its acquisition and scaling up its business, don’t think this story is over in fact it has just begun. The race to become the largest SuperApp in Southeast Asia is one that can only have one winner. Who will that be, just stay tuned it wont be a long wait!