GrabKitchen expands into Thailand, Vietnam

GrabFood is expanding its cloud kitchen network, called GrabKitchen, beyond Indonesia with simultaneous launches in Bangkok, Thailand and Ho Chi Minh City, Vietnam. The company said it will also launch the service soon in the Philippines and Singapore.

Photo credit: Grab

The launch of GrabKitchen in Thailand and Vietnam makes GrabFood the largest operator of cloud kitchens in Southeast Asia with 20 live kitchens, the company said in a statement.

Between June 2018 and June 2019, GrabFood claims its gross merchandise value (GMV) grew 900%, with delivery volume growing 7x during the same period across its six markets.

“We see GrabKitchen as a new solution that empowers our merchants to expand and grow, and for consumers to enjoy greater access to a wide variety of food,” said Lim Kell Jay, head of GrabFood.

“GrabKitchen also represents a key growth opportunity. Taking learnings from our success in Indonesia, GrabFood is looking to scale the GrabKitchen network rapidly across the region in the coming months.”

By the end of 2019, GrabFood aims to operate a regional network of cloud kitchens totalling over 50 GrabKitchens in five countries to become “the only truly regional food delivery platform with the largest footprint.”

GrabFood currently operates in 221 cities across six countries.

GrabKitchen offers users a variety of curated food selections by leveraging data from historical orders. GrabFood said the kitchens are strategically located to bridge consumer demand and availability of food selections while reducing the time for food delivery.

For merchants, GrabKitchen is a convenient way for micro, small, and medium-sized enterprises to expand the geographic area they serve and reach more consumers using technology. Since they are mostly a delivery-only service, cloud kitchens lower operational costs, particularly rental costs, which is one of the biggest expenses for food and beverage operators, the company said.

The concept was launched in Indonesia in April 2019 after a successful pilot. Then, GrabFood launched its first GrabKitchen with a dine-in feature at Capital Place, Jakarta in September to serve a base of consumers working in offices around the area.