Grab found a reliable revenue generator in Jaya Grocer. Now, it must unlock growth

The ~US$273 million Grab paid for Jaya Grocer in 2022 helped lift its delivery segment out of the red. But with consumer interest in e-groceries waning across Southeast Asia, growth potential looks limited

After mobility, delivery is the second major segment of Grab’s business with improved unit economics. It turned Ebitda-positive at the end of 2022

Grab’s acquisition of Malaysian supermarket chain Jaya Grocer a year ago was a significant driver of this improvement

The premium retailer’s offline sales are fuelling Grab’s delivery revenue, potentially contributing up to 42%. Grab doesn’t officially disclose this figure

But the real value for Grab is in bringing grocery sales online. It has been successful in Malaysia, but replicating the model in other countries is still a challenge

If Grab Holdings Ltd did one thing right in 2022, it was buying Malaysian supermarket chain Jaya Grocer, albeit at a premium. The effects of the acquisition acquisition The Edge Markets Grab completes Jaya Grocer acquisition Read more —which gave the Nasdaq-listed business access to the premium retailer’s customer base and supply chain—are still reverberating in its financials.

The Southeast Asian ride-hailing and delivery company announced a 112% year-on-year revenue growth and an accelerated timeline for breaking even during its earnings call for the quarter and the year ended December 2022 on 23 February.

AUTHOR

Nadine Freischlad

Nadine is based in Indonesia. She covers Southeast Asia's super apps, the changing nature of work and employment, and other structural shifts happening as a result of digital disruption.

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AUTHOR

Rahul Sachitanand

Rahul has over two decades of experience in journalism across Asia. He's worked across top publications such as The Economic Times, Business Today, and Campaign Asia-Pacific and worked in Bangalore, Mumbai, Hong Kong, and Kuala Lumpur.

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