Grab acquires majority stake in Malaysia’s Jaya Grocer

Grab Holdings, Southeast Asia’s largest superapp, has finalized the acquisition of a majority stake in Malaysia’s top mass-premium supermarket chain Jaya Grocer Holdings.

The two companies intend to collaborate to provide more Malaysians with the convenience of on-demand grocery delivery.

Grab and Jaya Grocer have also recently announced the expansion of GrabPay and GrabRewards to all Jaya Grocer physical retail outlets, allowing customers to use Grab’s popular cashless wallet in more places.

The acquisition comes at a time when on-demand grocery delivery services are experiencing rapid expansion. Long-term transportation constraints, as well as customer concerns about safety and hygiene, have led to an increase in the usage of online grocery shopping.

Despite the fact that 64% of internet users in Southeast Asia bought groceries online at least once during the outbreak, online grocery purchases only accounted for roughly 2% of total grocery spending.

At a penetration rate of 10%, similar to mature economies, online grocery in Southeast Asia may reach $50 billion in gross merchandise value, equaling the whole e-commerce industry today.

Anthony Tan, Group CEO and Co-Founder, Grab, said the combination of their extensive on-demand delivery fleet and capabilities and Jaya Grocer’s strong retail presence and supplier network will help both companies in the growth of their grocery delivery business.

Teng Yew Huat, Founder, Jaya Grocer, in a separate statement said Grab’s strong track record and ability to execute in a hyperlocal way gives them confidence that they have found the right partner.

“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,” said Teng.

As a result of the acquisition, Grab will be able to add more Jaya Grocer retail outlets to its marketplace, as well as leverage Jaya Grocer’s vast supplier network to expand its GrabSupermarket product line at a lower cost.

As a result, grocery delivery’s unit economics and overall affordability have improved.