According to a Bloomberg report, Singapore-based ride-hailing and delivery company Grab Holdings Ltd expanded its services by acquiring restaurant reservation app Chope for an undisclosed amount.
As it looks to fend off competitors like GoTo Group and Line Man Wongnai in markets like Singapore, Indonesia, and Thailand, the deal will expand Grab’s menu to include dinner reservations, the report continued. The Business Times (BT) first reported on the development.
Bloomberg claims that Grab is expanding beyond its basic offerings of food delivery and ride hailing in an effort to increase its profit margins in the competitive Southeast Asian market, which is home to more than 650 million people. The booking app from Chope has grown in popularity in the area, but it has also had to contend with fierce competition in a crowded market.
“Considering today’s challenging and competitive market, we have chosen to seek a partner to help us pursue new opportunities for sustainable growth,” Chope founder Arrif Ziaudeen said in a statement, according to Bloomberg’s report. “We evaluated potential buyers and found the best fit with Grab.”
As part of the agreement, Grab stated that it will assume control of Chope’s operations in Thailand, Indonesia, and Singapore. In a few weeks, choke employees will start working at Grab’s offices, according to BT, which obtained an internal email from Grab’s head of deliveries, Ngiam Xin Wei.
The agreement states that no positions at Grab will be eliminated and that Chope’s team will continue to operate as a division of Grab’s omnicommerce division.
Chope is available in seven cities (Singapore, Jakarta, Bali, Bangkok, Phuket, Hong Kong, and Shanghai) and is free to use, according to its website.
