Grab loads up on groceries

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Hello reader,

I have to admit, when I think of Grab (GRAB, NDAQ), I think of ride-hailing first and food delivery second.

That’s certainly a personal bias, as those are the two things I use the app for most. So a few nuggets from The Big Story today on the company’s continued grocery expansion in Malaysia surprised me.

For one, the company’s groceries segment has grown faster than food delivery for two quarters in a row. More supermarket acquisitions could be on the cards for the firm in Malaysia and elsewhere, and it certainly isn’t afraid to dip into its checkbook.

Of course, running a supermarket is a different beast from moving people and meals, and, as the piece explores, one of Grab’s supermarket acquisitions experienced lower profit margins.

But if the company can integrate its tech and logistics expertise effectively, it might just carve out a stronger position in Southeast Asia’s grocery market.

— Peter

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