Grab and Gojek square off in an international food fight
Al JazeeraThe two ride-hailing rivals are now competing for a bigger slice of the food delivery business across Southeast Asia. Singapore’s Grab came in later, but it’s catching up fast with the help of massive funding from SoftBank Group Corp. and the acquisition of Uber Technologies Inc.’s local ride-hailing and food delivery business in 2018. They also concur in seeing a bright spot in the food delivery market because it offers much more attractive margins than the more established ride-hailing business, said Florian Hoppe, a Singapore-based partner at Bain & Co. “Today, the food delivery market is significantly smaller than transport in Southeast Asia,” he said. “We truly believe that this is a big opportunity.” Elsewhere in the world, companies like Uber are also aggressively moving into the food delivery business in search for higher profit margins, having identified the same opening as Grab and Gojek. The sea of Gojek drivers in green jackets queuing up at popular stalls to pick up orders was a hint that the food delivery business might be something to take seriously.
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