Honestbee to halt food delivery in Singapore, suspend laundry services

Singapore-based grocery delivery startup Honestbee will stop its food delivery service in the city-state and temporarily suspend its on-demand laundry service across Asia, it announced in a media statement.

An internal memo seen by Tech in Asia says that the food delivery business in Singapore has become increasingly crowded and competitive and that it would be unsustainable to grow market share.

Habitat by Honestbee / Photo credit: Tech in Asia

Around 400 freelance workers, or delivery bees, will be affected by the decision. The changes take effect from May 20, which means these workers have been given a five-day notice period. It’s an improvement from past suspensions, when workers were not given advance notice.

“Although many delivery bees are part-timers, they have played a key role and have been a critical part of the Honestbee family. During this transition, Honestbee remains committed to assisting all delivery bees,” the company said in a statement.

The headcount in the Singapore office remains unchanged for now. However, the memo – sent by chief of staff Varian Lim – noted that Honestbee hasn’t ruled out future layoffs. “We are committed to reassigning affected staff to alternative roles within the company where possible,” it added.

Honestbee is undergoing a strategic review after its recent downsizing. Moving forward, it will focus on its core retail and groceries business. It also operates a supermarket and dining space called Habitat.

“In order for our business to move forward, we will need to take some painful but necessary steps to increase existing efficiencies, streamline our operations, and reduce our cost structure,” the memo said.

Follow our leading coverage of Honestbee here.