Grab launches food delivery service; sets sights on becoming ‘everyday’ app for delivery and payments

SINGAPORE — Ride-hailing giant Grab on Monday (May 28) launched its food delivery service GrabFood, replacing UberEats, which it bought over during its acquisition of Uber.

The company also unveiled its vision to be an everyday app for the region covering essential daily services such as transport, food, delivery and mobile payments.

GrabFood beta will be available in six South-east Asian countries within this quarter, including Indonesia, Thailand, Vietnam, Malaysia, Singapore and the Philippines.

The firm said it has amassed "thousands of merchants" including fast-food chain Macdonald's and restaurants like A Poke Theory within a two-month trial before the official launch on Monday.

Unlike other food delivery apps in Singapore, customers ordering through the GrabFood will not be subject to a minimum order.

Customers can also schedule orders up to five days in advance, and will be rewarded with five GrabRewards points for every dollar spent. "These GrabRewards points can be redeemed for discounts on ride-hailing services," said Head of Grab Singapore Lim Kell Jay.

Mr James Ong, Head of GrabFood in Singapore added: "GrabFood is a major milestone in our journey to becoming the everyday app for consumers."

"The launch of GrabFood in Singapore will bring a wide range of dining options to more consumers, and provide more income opportunities for local merchants and delivery partners," he said.

Declining to reveal how many delivery partners it currently has in the Republic, Mr Ong would only say the firm has "on-boarded the majority of delivery partners from UberEats".

He said that the delivery partners are paid commission according to market rates. Delivery riders are able to cash out their income everyday. They can also log in any time of the day to receive bookings to deliver food orders.

To get consumers to try out the GrabFood app, the firm is dishing out an introductory discount from now till June 3 of five dollars off all orders.

Grab said that when it crossed the milestone of one billion rides in South-east Asia last October, it surveyed consumers in the region to find out what people envisioned Grab to be in 10 years' time.

A majority of consumers "wished for a one-stop, everyday app that complements their daily lives", it noted.

Mr Lim added: "As we build an everyday app that offers transport, food and package delivery and mobile payments, Grab is focused on creating a seamless experience and unlocking value for our customers by offering complementary services on one platform."