Lazada temporarily suspends new Singapore grocery orders

  • Corporate News
  • Friday, 03 Apr 2020

SINGAPORE: Singapore’s government urged residents to consider ordering their groceries online rather than going to the shops. That just became tougher.

Alibaba Group Holding Ltd’s Lazada Group SA is temporarily suspending new grocery orders in Singapore after strict physical distancing measures and rising coronavirus cases triggered a surge in orders.

RedMart, Lazada’s online grocer unit, will not take new orders until it resumes tomorrow, the firm said in a notice to customers yesterday.

RedMart will use this time to make changes to the range of products available and prioritise daily essentials such as rice, flour and eggs, it said, adding that it will fulfil existing orders.

Lazada’s RedMart and other grocery delivery services such as Inc’s Prime Now have been kept busy amid harrowing economic times in Singapore.

These companies have been trying to cope with surging demand as about 5.7 million people in the densely populated island increasingly turn to online grocery shopping, part of Singapore’s S$7.5bil (US$5.2bil) grocery market estimated by Euromonitor.

“These companies now have to deal with a new situation where demand for essential items outpaces operational capacities, ” said Yinglan Tan, founding managing partner of Insignia Ventures. “Players that manage shorter supply chain may be more equipped to handle the stress.”

While the number of coronavirus cases has mounted to 1,000, the city-state has refrained from ordering a full lockdown of daily life and business, preferring to implement an ever-more-stringent set of rules and guidelines to restrain activity and curb the spread. — Bloomberg

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