Grab continues its insane ascent. Despite the failed merger with Gojek, Grab is displayed solid health in 2020. The delivery company has sales of $ 5.9 billion. It’s colossal, especially when you know it represents more than half of the total market Delivery to Southeast Asia.
Grab is way ahead
Grab, this company born in Malaysia in 2012, was leader in food delivery in 5 of the 6 markets in Southeast Asia. There is no doubt that Grab is literally crushing the competition and even Gojek or Foodpanda will now have a hard time catching up with them. The entire market has matured.
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The Covid-19 pandemic certainly helped, as it did everywhere in the world. In fact, the total gross value is Meals shipped to Southeast Asia increased 183% compared to the previous year to reach $ 11.9 billion in 2020. In Southeast Asia, Grab followed (by far) Foodpanda, which made shipments worth the equivalent of $ 2.5 billion, and Gojek, whose counter was $ 2 billion, mainly shipments in Indonesia.
The market in Southeast Asia has picked up speed for several reasons: The pandemic, of course, but not only. The economic growth of this region of the world, Urbanization or the massive arrival of smartphones. This is pushing the web giants to expand to other services.
A global trend that has been confirmed
These numbers are in line with what the CEO of Deliveroo said a few weeks ago. Will Shu, head of Deliveroo, said the Covid-19 pandemic has accelerated the adoption of home food delivery from 2 to 3 years. British society can thank the pandemic. It’s a phenomenon what allowed to “finally take off”.
According to the company, there has been a deficit for several years be profitable for six monthsat the operational level. Will Shu specifies the following: “Our existing customers have changed their behavior: They order more often and more often for their whole family. Finally, the size of the average basket tends to increase. “.
How can you be profitable in the delivery market in 2021?
Gojek and grave now offer various services : a payment service, an online bank, insurance, and maybe even a flying taxi service. In contrast, Foodpanda prefers to focus on a single market, that of the supply of food. Two different strategies.
To be profitable, all of these businesses must find additional sources of income. Momentum WorksAt the beginning of the report on the market situation reiterates that these companies in particular need to find more funding through interest in advertising.
We can read this: “Meituan’s success in China, a country with low food and labor costs, shows that growth and profitability are not necessarily correlated when developing a super app. It offers many lessons that stakeholders in the region could benefit from. “. The authors of the report recommend, for example, the web giant of Southeast Asia To provide independent restaurants with personalized services with limited resources.