Here's how the Grab company in the grocery delivery service can change the Singapore retail scene

Some analysts see traditional grocers building a strategic alliance with Grab while others see a possible queuing dog syndrome, whereby the partner ends up being absorbed by Grab.

During the unveiling of his plans for a superapp, the round The IPO also announced that it would soon launch a grocery delivery service in Jakarta and that it will be available in Thailand and Malaysia by the end of the year 2018. The launch of Singapore remains to be revealed.

the introduction of an online grocery service that will be available to Grab's distribution network of 7.1 million drivers, delivery partners, agents and merchants could pose threats to practicing grocers – physical and online – in Singapore, even though the functionality '

Shirley Zhu Director of IGD Asia Programs, said that the expectations of buyers are increasing, retailers to adapt quickly to these changes. "Retailers will have to make changes and even initiate changes to stay relevant, whether by themselves or through their partners."

This is not the first challenge that online groceries encounter in Singapore. Despite the rise of online shopping, online retailers are struggling to break the city's traditional eating habits and rethink their strategies.

"We have seen how retailers in China associate with on-demand grocery delivery businesses. sales for both parties. Walmart China, for example, makes its products available on JD.com's Daojia delivery arm. At the sweet opening day of his Huixuan supermarket in Shenzhen, he said more than 1,000 orders received on the platform, which set a record for Daojia's stores, "said Zhu. with Grab, benefiting from Grab's delivery capacity, as well as his consumer data.

Meanwhile, Golden Gate Ventures' principal Justin Hall was in agreement with Zhu will actually benefit, which will gradually improve existing grocery platforms. "Grab is attempting to create an open API platform, which by definition is an integrative platform, essentially an open 3PL platform that integrates all grocery platforms to be their last mile delivery partner ". be painful for all the light logistics solutions that do not work with Grab depending on the quality of the integra and service, Mr. Hall noted. "I think that the platforms that work with Grab will certainly have an advantage but could lead to a dog-tail waving syndrome, whereby the partner will be absorbed by Grab," he added.

Jasmine Toh Senior Analyst at Quest Ventures, said, "While Grab Grocery will work with partners, these partners are not immobile either." She also noted how NTUC FairPrice's online effort has been rejuvenated with its new Fairprice On.