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Grab to shut Indonesian cloud kitchen service and lay off staff

(Source: Grab/Facebook)

Grab Indonesia is set to shut its four-year-old cloud kitchen service later this year, laying off its staff.

The company said the decision, effective December 19, is part of its strategy to shift to an “asset-light” business model after experiencing inconsistent growth.

“This situation forced us to take the difficult decision not to continue our GrabKitchen operations in Indonesia,” Mayang Schreiber, chief communications officer at Grab Indonesia said in a statement.

Between 10 and 20 Grab’s staff in Indonesia, together with those working for merchant partners in 40 locations, are expected to be impacted by the closure. The company said it will provide compensation and complete its contractual obligations to those affected.

Grab Indonesia introduced the cloud kitchen service to the country in 2018 with the first location located in West Jakarta. Some popular brands partnering with GrabKitchen include Sour Sally and Kopi Kenangan.

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