Singapore-based food delivery app, Grab, has reportedly joined forces with Yummy Corp, a cloud kitchen startup, to reportedly strengthen its food business in Indonesia. The deal will extend the companies’ combined networks to over 80 cloud kitchens situated in seven cities across the country.

As per reliable sources, the agreement will witness the integration of merchants registered with Yummy into the ecosystem at Grab. The move will also enable users to make a purchase of multiple menus from numerous merchants operating in the same kitchen in one order, saving the cost of delivery and time. At present, there are over 200 brands which are available on the GrabFood platform.

Commenting over the deal, the Managing Director of Grab, Neneng Goenadi, stated that the companies’ expertise is complementary to each other; Yummy can help brands in setting up their store, training staff, and handling the branding, while Grab could help in data and delivery analytics. Goenadi has further stated that food delivery accounted for over 50 per cent of Grab’s revenue in Indonesia.

However, Goenadi did not unveil the total GMV (Gross Merchandise Value). But she has added that there has been a considerable increase in the number of new merchants on the platform.

Back in October 2020, a spokesperson from Grab Indonesia had stated that the company witnessed a surge of 25 per cent in new sign-ups from January to July 2020.

According to Hadi Surya, the Head of Marketing at Grab, the company rolled out numerous new features in 2020, comprising mix-and-match orders, and contactless delivery and payment. Surya has further stated that the company will be consistent in the development of more features for better customer experience.

However, as e-commerce platforms are also entering the space, the competition is poised to increase. Since last year, Sea Group’s Shopee and Tokopedia have commenced listing ready-to-eat food and beverages on their platforms, even though they are still dependent on Gojek and Grab for the last-mile delivery.

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