In a strategic move to bolster its presence in the Malaysian retail market, Grab Holdings Limited has acquired the Everrise supermarket chain, marking a notable expansion of its grocery delivery services.

Grab Holdings Limited, Southeast Asia’s superapp juggernaut, has announced the acquisition of Everrise, a prominent supermarket chain in East Malaysia. This move aligns with Grab’s strategy to enhance its grocery delivery services and strengthen its position in the Malaysian retail market.

By acquiring Everrise, Grab plans to digitize the supermarket chain’s operations, enabling on-demand grocery delivery services through its platform. This integration is expected to provide customers with a seamless shopping experience, allowing them to order groceries online and have them delivered to their doorsteps. The move also reflects Grab’s commitment to leveraging technology to meet evolving consumer demands and enhance convenience.

Everrise, established in 1993, has grown into a significant player in the Malaysian retail sector, operating 19 stores primarily in Sarawak. The chain is known for offering a diverse range of products, from fresh produce to household items, catering to the needs of local communities. Its strong regional presence and customer loyalty make it an attractive acquisition for Grab, which aims to integrate Everrise’s operations into its digital ecosystem.

THIS IS NOT GRAB’S FIRST GROCERY-ALIGNED MOVE

This acquisition follows Grab’s earlier purchase of a majority stake in Jaya Grocer, another prominent supermarket chain in Malaysia, back in early 2022. The Jaya Grocer deal, reportedly valued between RM1.5 billion to RM1.8 billion, enabled Grab to expand its grocery delivery services and strengthen its retail network. The addition of Everrise further solidifies Grab’s footprint in the Malaysian grocery market, allowing it to reach a broader customer base and diversify its retail offerings.

The acquisition of Everrise is poised to enhance GrabMart, Grab’s on-demand grocery and essentials delivery service. By incorporating Everrise’s extensive product range and established supply chain into GrabMart, customers can expect a wider selection of goods and improved delivery times. This move is anticipated to boost customer satisfaction and drive growth in Grab’s delivery segment.

WHAT DOES IT MEAN FOR THE MALAYSIAN RETAIL MARKET?

Grab’s expansion into the grocery sector comes amid intense competition in Southeast Asia’s digital economy. Rivals such as Indonesia’s GoTo Group are also venturing into various sectors, including online banking and e-commerce. By strengthening its grocery delivery services, Grab aims to differentiate itself and capture a larger share of the market. The acquisition of Everrise not only expands Grab’s retail network but also enhances its ability to offer integrated services to consumers.

The integration of Everrise into Grab’s platform is expected to have significant implications for the Malaysian retail market. Traditional brick-and-mortar retailers are increasingly recognizing the importance of digital transformation to meet changing consumer behaviors. Grab’s acquisition of Everrise underscores the growing convergence of online and offline retail, highlighting the need for retailers to adopt omnichannel strategies to remain competitive.

While the acquisition presents numerous opportunities, Grab may also face challenges in integrating Everrise’s operations into its digital ecosystem. Ensuring a smooth transition, maintaining service quality, and managing logistical complexities will be crucial to the success of this venture. Additionally, Grab will need to navigate regulatory requirements and address any concerns related to market competition.

According to some analysts, Grab’s acquisition of Everrise represents a strategic effort to expand its grocery delivery services and strengthen its position in Malaysia’s retail market. By integrating Everrise’s operations into its platform, Grab aims to provide customers with enhanced convenience and a broader range of products. As the digital economy continues to evolve, such strategic moves are likely to shape the future of retail in Southeast Asia. Whether or not consumers will benefit from such a ‘concentration of power’ in the grocery sector remains to be seen.

Information from Bloomberg and The Edge contributed to this article.