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Grab Expands Further into Southeast Asia’s Restaurant Booking Market
Singapore's leading ride-hailing and food delivery giant, Grab, is broadening its horizons by entering the competitive restaurant booking industry in Southeast Asia. The company has confirmed the acquisition of Singapore-based dining reservation platform, Chope, for an undisclosed amount.
Grab's restaurant reservation services are already established in Singapore through its 2022 acquisition of HungryGoWhere. This new acquisition of Chope, which lists 13,000 eateries across multiple locations including Hong Kong, China, Indonesia, and Thailand, will significantly expand Grab's footprint in the dining reservation market. This move aims to distinguish Grab from competitors and boost its profit margins.
A Chope spokesperson revealed that the platform was seeking new investments when Grab's acquisition offer emerged. “We evaluated potential buyers and found the best fit with Grab—a company whose mission aligns with ours in connecting restaurants to diners,” the spokesperson remarked. Founded in 2011, Chope has raised over $64 million from investors such as Ant Group and Singha Ventures and was valued at approximately $101 million in 2022.
Grab announced the acquisition to its staff via email on Monday, informing them that it would encompass Southeast Asia operations but exclude China and Hong Kong services. This strategic move allows Grab to offer restaurant booking services across Southeast Asia, thereby differentiating itself from other regional players like GoTo and Line Man Wongnai.
A Grab spokesperson shared that the company anticipates significant synergies for its food and beverage merchants through the Chope acquisition. “Most of the merchants on our platform are small to medium-sized businesses that lack the resources and know-how of larger F&B brands. We aim to level the playing field by equipping them with tools to efficiently grow and manage their businesses,” said the spokesperson in an email statement.
Competition in the Restaurant Reservation Space
The restaurant reservation industry in Southeast Asia is intensely competitive, with multiple apps such as Open Table, Yelp, and Resy already in operation. Additionally, in 2022, Grab shareholder Uber launched a new feature allowing users in 15 U.S. and Mexican cities to book dinner reservations and live events through its app. The abundance of options raises questions about whether this acquisition signals a trend toward more mergers and acquisitions or if Grab is simply capitalizing on a unique opportunity available at this moment.
