Grab, one of Southeast Asia ride-hailing firm plans to expand its food delivery service, GrabFood. Now, Grabs will launch 50 GrabKitchens, cloud kitchens, across Indonesia by the end of this year.
GrabKitchen is similar to food courts, where food vendors operate a stall but typically prepare food. However, the food then can be picked up and distributed by delivery drivers instead of being served to customers on-site.
The GrabKitchen’s food stall will be directly linked to Grabfood application. According to the Grabfood’s head of marketing in Indonesia, GrabKitchen has grown its gross merchandise volume (GMV) 25x since the first one was launched in April 2019. Currently, Grab has already had 10 GrabKitchen operating across the countries’ capital city.
Read also: Grab Invests $2 Billion in Indonesia
However, for the new GrabKitchen, the dine-in concept is a first. Grab remains confident that its new service will become its main growth driven in the second semester of 2019. Yet the firm has not revealed the location of the new GrabKitchens. The firm just mentions that it will analyze the GrabFood’s customer data to better understand the cuisine demand all across Indonesia.
Food Delivery Service in Indonesia
Grab targets to be the first player in the food delivery service in Indonesia at the end of the third quarter of 2019. In other words, the firm intends to overtake rival Gojek. Gojek currently claims to be the top food delivery service in Indonesia.
Read also: GoJek Launches GoGames
Grab claims that GrabFood has gained 50% of the market share in the first half of 2019. The number is higher than the 15% market share at the beginning of 2018. Thus, GrabFood’s overall GMV grew 3x in the same period.
By that significant growth, Grab remains confidence that GrabKitchen will significantly increase that already high market share.
