KUALA LUMPUR, May 15 — Singapore-based grocery and delivery start-up Honestbee will no longer be operating its food delivery service and laundry delivery service in the island nation. Some of its overseas operations will also be shut down or suspended.
Singapore daily The Straits Times reported that Honestbee's food delivery arm will shut down on Monday and is expected to affect 400 riders and 1,200 restaurant partners. However, it is unclear whether its food Takeaway service on its app will be closed down as well.
Last month, Honestbee had announced that it will cut 10 per cent of its global headcount and suspend some of its international operations in the seven countries where it operates apart from Singapore.
It will no longer be servicing Hong Kong and Indonesia. Its Thailand food business will also be closing down and its presence in Japan and the Philippines will be suspended.
Honestbee, however, did not indicate whether its Malaysian and Taiwan operations will be affected.
Meanwhile, the company’s Singapore operations and its headcount will remain unchanged.
Earlier this month, the troubled start-up’s co-founder and chief executive Joel Sng stepped down with Brian Koo taking over the position.
Singapore’s Business Times had also reported that investors were approached to raise around S$20 million (RM60 million) and prior to its change of leadership, Honestbee was considering other avenues of growth including finance and insurance partnerships.
“The decision was made to optimise the business structure, and to drive better focus and alignment with Honestbee’s current strategic priorities.
“The newly appointed executive team is working on future plans to stay relevant and sustainable in today’s rapidly changing business environment.
“This will help to put Honestbee in the best possible position to support the business in Singapore and other geographies going forward,” the statement reportedly said.
For the time being, it will continue its grocery delivery service and its cashless and automated supermarket — Habitat.