Malaysia, COVID-19 Movement Restrictions

Rapid Growth in Online Shopping and Delivery Usage... 'Delivereat' Delivery Orders Up 300%


[Asia Economy Kuala Lumpur Hong Seong-ah, Guest Reporter] As the novel coronavirus infection (COVID-19) led to movement restriction orders, consumption patterns among Malaysians are also changing. With outings prohibited except for essential work, customized delivery services are emerging one after another.


According to local media such as TechNave on the 31st, Grab recently launched the 'Pasar (meaning market in Korean) Service' delivering fresh foods such as meat and seafood from traditional markets to homes in the Kuala Lumpur metropolitan area, and expanded its daily necessities delivery service 'GrabMart' to other regions in Malaysia including Penang, Johor Bahru, Melaka, Kota Kinabalu, and Kuching.


Traditional markets are still thriving in every neighborhood in Malaysia, and many consumers prefer traditional markets over large supermarkets. Malaysians preferred to see and purchase products in person, so there were not many users of traditional market delivery. However, due to COVID-19, even middle-aged and older people who previously did not prefer delivery services have started using them.


With outings banned under movement restrictions, industry measures to practice 'social distancing' are also attracting attention. Delivery apps are differentiating themselves by enhancing cleanliness and introducing contactless services. Delivereat, Grab, Foodpanda, and others require employees to wear masks and use hand sanitizers, and operate by leaving food at the customer's doorstep. KFC and McDonald's have strengthened their own delivery systems. QSR brands operating KFC and Pizza Hut stores are running takeout, delivery, and drive-thru services, and have newly introduced contactless delivery services. They have also increased cleaning and employee health check frequency to improve hygiene and cleanliness. McDonald's has required the use of credit cards or online payment methods instead of cash since the 27th to avoid face-to-face contact.



Grocery stores are also implementing various measures to minimize contact. AEON started a 'Personal Shopper Service' where customers write down the items they want to purchase and staff buy them on their behalf. To avoid overlapping routes with other customers, customers wait in their vehicles or waiting rooms. Grocery stores Jaya Grocer and Mydin operate separate shopping hours for the elderly and vulnerable groups who have difficulty shopping. With the movement restriction orders due to COVID-19, online shopping and delivery growth in Malaysia are expected to accelerate. According to local media such as The Star, delivery service company Delivereat, established in 2012, has seen delivery orders increase by about 300% compared to before the movement restrictions. As COVID-19 prolongs, generations unfamiliar with online services are joining, and contactless consumption is spreading, increasing the use of mobile payment systems. Online food delivery services are expected to continue growing even after the COVID-19 situation.


This content was produced with the assistance of AI translation services.

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