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Hi there,
This week’s newsletter is all about online groceries.
A 2020 report by Facebook and Bain & Company suggests that the groceries market was estimated to be worth US$350 billion in Southeast Asia at the time, but online penetration was only at 0.3%.
The pandemic has elevated groceries into one of the hottest ecommerce verticals.
In our Big Story, Melissa analyzes Webuy’s acquisition of Indonesian social commerce startup Chilibeli that was announced earlier this week.
Founded in 2019, Chilibeli sells fresh fruits, vegetables, and household products. The platform connects consumers, farmers, and suppliers in Indonesia’s Tier 1 to 3 cities through a network of over 10,000 agents known as mitras. Meanwhile, Webuy relies on “group leaders” to execute its Pinduoduo-like model.
This “marriage” makes a lot of sense for Webuy, as it fast-tracks its growth in Indonesia. But it’s also a sign of upcoming consolidations in this extremely competitive space.
As I point out in the Hot Take, the region’s online groceries startups, despite being flush with cash, have to get the model right and sustain it. They must learn from those who have failed to do so in the West and China.
As for me, I prefer a run to a brick-and-mortar store. It also makes for good exercise.
– Huong
THE BIG STORY
Webuy acquires Indonesian social commerce rival, starts offering travel deals
Image credit: Timmy Loen
The Singapore-based group-buying platform has also set its sights on travel bookings and plans to launch an advertising business in the long term.
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