Grocery supply service HappyFresh has apparently quickly suspended operations in Malaysia.
On September 6, Rnggt reported {that a} discover within the promotions tab of the HappyFresh app acknowledged that each one shops on its platform will likely be quickly closed till it might probably “resolve the difficulty.”
The web grocery supply platform didn’t point out what the issue is, nor did it present a tentative time of when clients can count on service to return to regular.
Their discover solely highlights that the corporate is taking longer than anticipated to resolve this and asks clients for endurance because it continues its efforts.
Buyer inquiries stay up within the air
Based in 2014, HappyFresh is operational in Indonesia, Malaysia, and Thailand.
The e-grocer was beforehand current within the Philippines and Taiwan, earlier than withdrawing from these markets in 2016, with the purpose of sustainability.
Now HappyFresh will not be solely halting its operations in Malaysia, however has additionally suspended deliveries in elements of its Jakartan territory, signaling deeper issues.
Primarily based on buyer inquiries in a HappyFresh Fb submit, “technical points” could have already been ongoing for the reason that finish of August.
Whereas HappyFresh has been addressing feedback on-line, responses from the startup lack readability on the rationale for its hiatus from the Malaysian market.
A commenter on the r/malaysia thread who has been utilizing HappyFresh since 2020 mentioned: “I began noticing one thing unusual when it closed its personal market. Then they quietly additionally elevated the supply value from RM4 to six with out informing shoppers.”
Nonetheless, we have been unable to confirm what Redditor meant by “when it closed its personal market”, as HappyFresh by no means formally introduced the everlasting closure of its darkish store operations, a minimum of in Malaysia.
For context, the e-grocer launched HappyFresh Grocery store, on MAHSA Avenue, KL, in July 2022, promising low cost costs amid rising inflation.
The darkish brick-and-mortar retailer aimed to offer straightforward and handy on-line grocery buying with “free supply and no out-of-stock moments”, whereas working alongside different Malaysian grocery store chains.
Decelerate on the rise of the digital grocery retailer
The marketplace for grocery supply providers has arguably gone bitter amid slowing financial development, rising inflation and better rates of interest, Bloomberg claimed.
That is along with clients not needing to rely as closely on e-grocers as they did throughout the pandemic lockdowns.
Even Seize, which strategically acquired Malaysia’s Jaya Grocer in early 2022, determined to shut its darkish retailer operations in Singapore, Vietnam and the Philippines.
This transfer was to chop prices and streamline its supply operations, reversing from the earlier technique.
One other Reddit consumer on the r/malaysia discussion board hinted that HappyFresh could endure the identical destiny because the now-defunct honestbee.
In July 2019, Singapore-founded e-grocer honestbee introduced that it was suspending its operations, ultimately closing shortly after as a consequence of monetary points.
Based on Bloomberg, Jakartan-based HappyFresh can also be experiencing monetary issues. It not too long ago employed restoration agency Alvarez & Marsal to assessment its accounts because it has been struggling to lift extra funds for its operations.
With a minimum of US$97 million (about RM437 million) in debt financing, a number of the firm’s high executives have reportedly stopped dealing with their day-to-day duties.
We contacted HappyFresh Malaysia representatives for extra data on their state of affairs, they usually responded by saying:
Sorry for the inconvenience as we’re present process an organizational restructuring and technique to make sure enterprise continuity.
As we refocus our efforts to reshape our enterprise accordingly, our enterprise operations will likely be quickly suspended till we attain a last and sustainable answer that advantages and preserves the enterprise pursuits of each events.
It’s a nice honor to serve our clients such as you and we stay up for persevering with to do our greatest to give you wonderful service.
The Blissful Contemporary workforce
For Malaysians affected by the HappyFresh suspension and nonetheless counting on e-supermarkets for his or her comfort, some alternate options to take a look at embody MyGroser, bawiq, GrabSupermarket and pandamart.
- Study extra about HappyFresh right here.
- Learn different articles about Malaysian on-line grocery providers right here.
Featured Picture Credit score: Vulcan Publish
– HappyFresh M’sia shuts down e-grocer operations temporarily
