Grab Indonesia discontinues GrabKitchen

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Grab Indonesia has decided to discontinue its cloud services, officially on 19 December 2022. Grab Indonesia's chief communications officer, Mayang Schreiber told MARKETING-INTERACTIVE that GrabKitchen has witnessed an inconsistent growth and a shift to an asset-light business model during its four years of operation.

This decision is said to impact less than 20 employees and merchant partners and the company will provide benefits to its affected employees. This includes disbursement of the remaining leave days, goodwill payment, notice payment, extended health insurance as well as a mental and emotional health support programme.Meanwhile, its merchant partners will see rent waiver fees until 19 December 2022, a token of appreciation of up to 60% of their monthly gross revenue, and fulfilment of all contractual obligations.

According to Grab Indonesia, GrabKitchen was introduced in Indonesia in September 2018 when GrabFood opened its first delivery-only kitchen in West Jakarta. GrabKitchen is a delivery-only kitchen, also known as cloud kitchens, that unites multiple food and beverage brands in a single central kitchen to plug the cuisine gaps in specific areas. Not only it increases the diversity of food choices in the area but also reduces delivery time for orders, resulting in an improved consumer experience.

In 2020, Grab launched its 50 GrabKitchen services across five Southeast Asian countries, which was part of Grab's regional expansion plan. The service offered more merchant partners the opportunity to expand with GrabKitchen at low cost and risk and with immediate access to Grab’s user base.

The company also recently shut its GrabWheels operations in Singapore and Malaysia, and mergedits Indonesia GrabWheels operations with our car rental business in the market. On the deliveries front, it made the decision to close its dark store operations in Singapore, Vietnam and the Philippines.