Grab Partners with Yummy Corp to Expand Cloud Kitchen Coverage

Grab announced a partnership with Yummy Corp to expand the business scope of culinary entrepreneurs in Indonesia. As combined, the two companies now operate more than 80 cloud kitchens throughout Indonesia.

In a virtual press conference today (8/2), Grab Indonesia's Country Managing Director Neneng Goenadi emphasized that Grab doesn't provide any investment for Yummy Corp in this collaboration. It's only in the form of an MoU from the two companies to support culinary in Indonesia.

"The collaboration with Yummy Corp is based on a shared vision to offer new concepts in the culinary industry as a form of Grab's support for this industry in Indonesia," she explained.

In a separate official statement, Yummy Corp's Co-Founder & CEO, Mario Suntanu said, "Our mission is to support culinary entrepreneurs to grow in the new digital era by providing managed expansion solutions through cloud kitchens. We are very happy to work with them. Grab to take the mission of the two companies to the next level, where the speed of expansion, quality of food, and customer satisfaction will always be our main focus."

The next implementation of the collaboration is that Yummy Corp will provide operational management including recruiting more staff at GrabKitchen, Yummy Corp merchants are incorporated into the GrabFood platform and access the features in it, so they can receive maximum benefits.

Eventually, encouraging innovation in the culinary industry through collaborations with brands and chefs. Grab and Yummy Corp plan to work with culinary entrepreneurs to create new concepts, test them on the GrabFood platform, and develop them in the cloud kitchen networks of Grab and Yummy Corp.

Grab Indonesia's Country Managing Director Neneng Goenadi and GrabFood's Head of Marketing Hadi, Surya Koe / Grab

The concept of cloud kitchens alone is currently very popular among food delivery service providers. Gojek as Grab's main competitor in Indonesia also performs the same approach. Through its investment in a cloud kitchen startup from India, Rebel Foods, Gojek brought the service to Indonesia through PT Rebel GoFood Indonesia (GoFood Kitchen).

Research of Momentum Works said that in Indonesia GMV food delivery services limited reached 52 trillion Rupiah in 2020. The result is dominated by Grab and Gojek dominated, holding respectively 53% and 47% of the total market share.

The biggest business contributor

Neneng also said that the GrabFood business supports 50% of the entire Grab business. There was no further detail on how the contribution from Indonesia, or others. "We are proud to say that Grab is a super app company because 50% of our business, be it transactions, revenue, and so on, is contributed by GrabFood."

Grab changed its strategy to no longer rely on the transportation business, especially in the midst of an ongoing pandemic. Since last year the company has invested heavily in food delivery services, including delivering daily necessities with GrabMart and GrabAssistant.

Without clearly stating the numbers, it is said that the growth of active merchant partners at GrabFood on the platform over the past year has increased significantly. GrabMart merchants also continue to grow, starting from supermarkets, convenience stores, pharmacies, and startups such as Sayurbox, TaniHub, and WarungPintar. Thanks to this partnership, GrabMart has reached 19 cities.

In addition, it provides GrabMart Daily to meet daily needs thanks to the collaboration with a number of FMCG brands. This service is only available in nine locations in the Jakarta area, for example, Duren Sawit, Kemayoran, Lebak Bulus, Setiabudi, Daan Mogot, Tendean, and Kebayoran Lama.

As for GrabKitchen locations, it has spread across 46 locations in seven cities, including Jakarta, Bandung, Surabaya, Medan, and Makassar. There are more than 200 brands that are members of this cloud network.

Aside from focusing on increasing merchant partners, but the company also developed a number of features to make it easier for consumers. Among them are Take Yourself, Scheduled Order, Order With Friends, Multi Order, Order Again.

Next, order at once from various merchants located in one building/street; Best Promotions to filter the list of merchants participating in a particular promotion; expand the non-cash payment options for GrabFood; tips before the transaction is complete.

-Original article is in Indonesian, translated by Kristin Siagian