Grab is launching an online food delivery business
Southeast Asian ride-hailing company Grab recently acquired Uber’s assets in the region. UberEats, Uber’s online delivery business, officially pulled out of the region on May 27, and on May 28, Grab launched its own online delivery service in Singapore. Grab took over UberEats in the region as part of its acquisition of Uber, and moved its merchants and customer base to GrabFood.
Grab still faces stiff competition in Southeast Asia
GrabFood has a handful of competitors in the region, including Food Panda, Deliveroo, and Indonesia’s Go-Jek’s GoFood. The online food delivery space is a fast-growing market, and ride-hailing companies around the world are slowly launching their own online-food delivery services.
While UberEats has wound up its Southeast Asia operations, it is gaining ground in online food deliveries in the United States. According to research company Second Measure, Uber Eats is the fastest-growing food delivery service in the United States, and second to GrubHub (GRUB) based on market share.
Despite Uber’s exit, the ride-hailing business remains competitive in Southeast Asia. Go-Jek, which is backed by Tencent (TCEHY), JD.com (JD), and Alphabet’s (GOOGL) Google, has invested $500 million in expanding further into the region.