Lazada folds online grocer RedMart into its own app

The firm is also planning to launch in one more city outside of Singapore in the second half of the year

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Alibaba-owned e-commerce platform Lazada will fully integrate the services of online grocer RedMart by mid-March to offer a seamless shopping service to customers in Singapore, the firm said during the press conference today.

Lazada acquired RedMart in 2016 but operated it as a separate platform.

After the apps merge, shoppers will be able to buy groceries and fresh products along with Lazada’s other product categories on one single platform. The new RedMart section will feature similar design, tools, and functions as the existing RedMart app and website. RedMart app users have until March 15 to migrate to Lazada before RedMart’s standalone app will shut down. Lazada says it hopes upcoming promotions and discounts will encourage consumers to make the switch.

The integration is a response to the customers’ request and demand for a wider range of assortment on both Lazada and RedMart, said Lazada during the press conference.

Lazada’s new grocery push is part of its plan to become Southeast Asia’s biggest e-commerce ecosystem.The firm said it’s looking to launch its grocery and supermarket business in at least one other city in the second half of 2019, tackling the billion-dollar grocery delivery market in Southeast Asia.

Groceries delivery takes up only a small fraction of overall e-commerce, but the sector is heating up. HappyFresh, a Southeast Asian groceries delivery pioneer, recently teamed up with Grab to offer on-demand groceries delivery. Meanwhile, Go-Jek, puts its grocery delivery service Go-Mart on hold ahead of a general overhaul of the concept. Singaporean startup Honestbee is another competitor. And in many cities, brick-and-mortar supermarket and hypermarket chains are launching their own apps and delivery strategies.

Editor: Nadine Freischlad