Southeast Asia’s ride-hailing decacorn Grab has launched its first cloud kitchen, GrabKitchen in Singapore.
According to a statement, Grab has 50 cloud kitchens across five Southeast Asian markets to date, including Indonesia, Vietnam and Thailand. Its latest Singapore central kitchen facility based in Hillview hosts over 10 F&B brands including three new virtual restaurants and serves the western part of Singapore.
Cloud kitchens are not new to this market.
Food delivery firms that have rolled out similar concepts include Deliveroo and FoodPanda. Singapore also has a number of cloud kitchen-only models, including the likes of Hong Kong’s Spoonful Meals and Smart City Kitchens, the brainchild of former Uber CEO Travis Kalanick.
Such concepts allow players like GrabFood to drive cost efficiencies in a variety of ways. In this scenario, GrabFood offers merchants a space to operate, takes care of utility management, and provides marketing and financial support to help F&B owners grow and scale.
Grab also provides market insights to its F&B partners to create new menu options, which in turn leads to a wider variety of food options for customers from a single delivery point.
“Together with our merchant-partners, we hope to bridge cuisine demand and supply gaps, complement and expand the variety of food options at different price points in the area, and offer them conveniently to consumers through on-demand delivery, self-pickup, or dine in,” said Dilip Roussenaly, head of GrabFood Singapore.
Roussenaly added that GrabFood will roll out more GrabKitchens in Singapore, but declined to share details on how many and when.
Food delivery is one of Grab’s largest business units. According to Grab, its food delivery business witnessed a 5.2x growth in gross merchandise value (GMV) in 2019, and 173 per cent increase in active users.
Lim Kell Jay, Regional Head of GrabFood said: “2019 was about expansion, and becoming consumers’ most preferred service. In 2020, we’ll combine our capabilities across food delivery, financial, and advertising services and provide merchants with the tools of the trade that will take their businesses to new heights.”
Grab calls itself Southeast Asia’s largest food delivery provider by GMV and geographical footprint. It boasts an active presence in seven markets across 271 cities.