Grab's Grocery Push: Acquiring Malaysia's Leading Supermarket Chain

Grab, Southeast Asia's leading superapp, has made a strategic move to bolster its grocery delivery services by acquiring a majority stake in Jaya Grocer, Malaysia's leading mass-premium supermarket chain. This acquisition, announced on January 31, 2022, is expected to accelerate the growth of GrabMart and provide consumers with more options and better convenience.

Jaya Grocer, established in 2008, operates over 40 stores across Malaysia, with a strong presence in Klang Valley. The company is known for its wide selection of quality fresh produce and grocery items, making it a popular choice among Malaysian consumers. By integrating Jaya Grocer's retail stores and supplier network into its GrabMart marketplace, grab can offer a more extensive range of products to its customers, enhancing the convenience and appeal of its on-demand grocery delivery service.

The acquisition enables Grab to leverage Jaya Grocer's large supplier network to further expand its GrabSupermarket product line at lower costs. This contributes to improved unit economics and overall affordability of grocery delivery, making Grab a more competitive option for price-sensitive customers. Additionally, Grab will roll out GrabPay and GrabRewards across all Jaya Grocer physical retail stores, expanding the usage of Grab's popular cashless wallet and enhancing customer loyalty.

Anthony Tan, Group CEO and Co-Founder of Grab, expressed his excitement about the partnership, stating, "It is our vision to make on-demand groceries more accessible for everyone. Jaya Grocer is known for their wide selection of good-quality fresh produce and grocery products. 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. We believe this partnership will further accelerate the growth of our groceries delivery business, and we are excited by the immense opportunity ahead of us."

Teng Yew Huat, Founder of Jaya Grocer, also shared his enthusiasm for the acquisition, "I have built Jaya Grocer from the ground up – from our first store in Klang Valley to over 40 stores today. Grab's strong track record and ability to execute in a hyperlocal way gives me confidence that I have found the right partner to take Jaya Grocer to new heights. This acquisition provides us with an amazing opportunity to not only grow as a company, but also grow the market for online grocery services in Malaysia."

In conclusion, Grab's acquisition of Jaya Grocer is a strategic move that supports its overall growth strategy and its vision to make on-demand groceries more accessible for everyone. By expanding product variety, leveraging supplier networks, accelerating growth, strengthening its market position, and contributing to its social impact mission, Grab is well-positioned to continue its dominance in the on-demand grocery delivery market.