Grab’s serving up a storm with its food delivery biz

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What I learned in these two years: You can deliver anything when you put your mind to it. From a full omakase meal to that famous banana cake from Malaysia, food delivery has kept me happy and well-fed. My wallet, however, might have a completely different opinion.

Everyone loves getting stuff sent to their doorstep… until you have to pay for the fees, that is. But there’s no doubt about the convenience that delivery apps can bring, and one of the apps that is the boon and the bane of my wallet is Southeast Asian super app Grab.

Today we look at:

• Grab’s food delivery business
• A profitable fintech company that raised US$200 million
• Other newsy highlights such as Alibaba’s new all-female committee and the unusual hurdle blocking Paytm’s IPO

PREMIUM SUMMARY

Why Grab’s food delivery arm is looking really tasty

2020 was a year of deliveries, and Southeast Asian super app Grab obviously benefited from that. Deliveries accounted for half of Grab’s adjusted net revenue last year, and it’s the largest among the company’s four segments, which includes mobility, financial services, and enterprise and new initiatives.

• Serving up strong revenue: Grab’s deliveries business is growing tremendously. Its adjusted net revenue rose from a negligible amount in 2018 to US$844 million in 2020. The super app is also projecting that its food delivery arm will become profitable by next year.
• A piece of the multibillion-dollar market: The total addressable market of Southeast Asia’s deliveries sector, which consists of food and parcel delivery as well as online groceries, is estimated to hit US$30 billion to US$55 billion in 2025. Using Grab’s 15% take rate, that’s a potential US$8 billion in revenue up for grabs.
• The leader of the pack… for now? Grab is reported to be the no. 1 food delivery platform in Southeast Asia, holding 50% of the market share. However, the company faces fierce competitors such as Gojek, AirAsia, and even Siam Commercial Bank (SCB) in Thailand.

Full analysis: How Grab built its lead in the food delivery war

STARTUP SPOTLIGHT

The profitable fintech company that’s working behind the scenes

M-Daq, a Singapore-based fintech company backed by Ant Group, recently raised US$200 million from Asian giant Affinity Equity Partners.

The question of customer experience in a digital world