AirAsia launches online grocery delivery service in Singapore

This is the latest version of the article that was previously updated on June 14, 2021.

AirAsia has entered the competitive grocery-delivery market in Singapore with the launch of its application called AirAsia Fresh. It will offer groceries such as meat, seafood, vegetables, fruits, eggs, snacks, among others.

Last month, the company had called for interested fresh produce and grocery merchants throughout the city-state to join its ecommerce delivery platform. The company said it will not charge a delivery fee to customers on a minimum spending amount of S$40 (US$29.79)

This comes after AirAsia launched its food delivery service in Singapore in February. The airline, which has set its sights on becoming a super app, is also reportedly been looking to enter the ride-hailing space.

Photo credit: AirAsia

To entice grocery merchants, AirAsia is offering a 0% commission rate for the first month and a low commission rate of 5% thereafter.

The company also said it will provide extensive marketing support and periodic campaigns for merchants in order to drive online traffic to their online stories.

“We truly believe in supporting small businesses in digitizing their operations and diversifying their revenue stream,” Lim Ben-Jie, head of ecommerce for AirAsia super app, said in a statement said.

The online grocery delivery market in Singapore includes several heavyweights such as Grab, Foodpanda, and Redmart.

In April, it was reported that AirAsia was looking to raise US$300 million for its AirAsia Digital unit, which drives its super-app ambitions.

A month earlier, AirAsia founder and CEO Tony Fernandes estimated that its super app would record a turnover of US$250 million this year.