Grab launches first cloud kitchen in Singapore amid GrabFood expansion

Southeast Asian ride-hailing giant Grab has opened its first cloud kitchen in Singapore as part of the company’s 2020 expansion strategy for its food delivery service GrabFood.

GrabKitchen Singapore / Photo credit: Grab

GrabKitchen offers merchant-partners a platform to introduce new food concepts and brands. In addition to offering a space to operate in, GrabFood takes care of utility management within the facility and marketing support within the app, helping reduce onset business challenges.

The GrabKitchen in Hillview brings over 10 F&B brands, including three new virtual restaurants, to northwest Singapore, according to a statement. Grab is also planning to launch more cloud kitchens in the city-state within the first half of the year.

Along with this, the company unveiled a GrabFood merchant platform designed to provide tools for merchant-partners. It seeks to cater to their end-to-end business needs that span procurement, marketing, finance, and business management to help them expand their businesses.

The platform will include features such as a unified merchant app and a dashboard with access to GrabFood, Grab Financial Group, and GrabAds services. It will also help merchant-partners procure discounted kitchen supplies and ingredients through Grab’s agent network and offer tailored solutions to improve merchants’ existing processes. According to the company, it will roll out the features in phases during the year.

GrabFood regional head Lim Kell Jay said that the announcement comes on the back of a 5.2x growth in gross merchandise value and a 173% increase in active users for the business last year.

“2019 was about expansion and becoming consumers’ most preferred service. In 2020, we’ll combine our capabilities across food delivery, financial, and advertising services, and provide merchants with the tools of the trade that will take their businesses to new heights,” the exec added.

Now having 50 cloud kitchens across Southeast Asia, GrabFood will continue expanding its network of cloud kitchens in 2020. It is currently operating in 271 cities across seven Southeast Asian countries.