Retail News CRM

Tag: Honestbee

  • Honestbee lays off most of its staff as it struggles to secure funding

    Honestbee lays off most of its staff as it struggles to secure funding

    Singaporean delivery firm Honestbee has laid off around 80 percent of its staff as it searches for funding to remain trading.

    According to DealStreetAsia, the startup has dropped around 100 employees – including both local and foreign staff – and salaries will be delayed until further funding can be secured.

    Its futuristic grocery store business Habitat has been closed for a full month and will reportedly shift to smaller premises.

    “Due to several external commercial pressures that have resulted in the protracted closure of Habitat by Honestbee, the company has made the strategic decision to reduce its staff force,” read a statement from the firm. “As a result, the company has decided to reduce its non-core staff as it does not foresee operating Habitat in its full strength over the next few weeks.”

    The firm had been anticipating a cash injection of around $50 million from an unidentified retail conglomerate, although that deal has failed to materialize following the advent of the coronavirus epidemic.

    Honestbee is currently moving to restructure itself out of a debt of about $230 million, including salaries to more than 200 former staff members. It is currently trading under court protection from its creditors.

  • Honestbee wins creditor reprieve

    Honestbee wins creditor reprieve

    Struggling grocery retailer and delivery startup Honestbee has been granted a four-month debt moratorium by the Singapore High Court.

    While two months shorter than the protection period the company sought from the court, it allows the business to restructure free from creditor pressure.

    Reports by Singapore business media show Honestbee owed around US$236 million in current liabilities as at the end of June. On top of that it has debt of around $210 million owed to some 1800 convertible noteholders which it is trying to exchange for equity.

    While Honestbee’s debt is a major impediment to the ongoing business, as much as 80 percent of the liability is to investor Brian Koo and entities controlled by himself or family interests.

    Koo stepped down as chairman of Honestbee in mid-September but is believed to support the debt restructuring scheme.

    Following the court decision, Honestbee CEO Lay Ann Ong issued a statement about the company’s immediate future: “A successful recapitalization and restructuring of the business will set a strong path of recovery for the company. This is necessary to ensure that we have the right structure in place moving forward so that we can better serve our customers across Asia.”

    The company will release further details shortly on its recapitalization progress and plans to sell of some parts of the business.

    Lees ook:

    Lees ook:

  • Habitat by Honestbee stores planned for more Asian locations

    Habitat by Honestbee stores planned for more Asian locations

    The futuristic Habitat by Honestbee grocery retail format is set for expansion across Asia provided Honestbee can secure court protection from its creditors.

    Honestbee, which has debts estimated in the range of US$180 million, is awaiting a court decision on an application for a six-month reprieve from enforcement actions and legal proceedings from creditors.

    In an interview with Yahoo Finance Singapore, incoming CEO Ong Lay Ann says if the decision goes in the company’s favor a core plank of the restructuring program will be focusing on the high-tech Habitat by Honestbee concept, which has one outlet trading in suburban Singapore. The concept merges cashless grocery store with a restaurant and a testbed for new retail technologies. Customers can shop for groceries and have them home delivered, dine in-store or order food to go.

    “Once we do the restructuring and clean up, the prognosis for the business is actually good, and parts of the business have tremendous potential, like Habitat” Ong Lay Ann told Yahoo Finance.

    “There are plans to open Habitat around the region and we have partners that are working with us to develop in other countries.”

    Ong said the company is in “advanced discussions” with prospective partners in South Korea, Taiwan, and Malaysia and expects stores to begin trading there “within a couple of months”.

    “We will adopt a partnership model, so we will collaborate with potential operators and work with them to develop Habitat in its current form or Habitat 2.0.”

    The 5000sqm Habitat by Honestbee store opened last November in an industrial building in Pasir Panjang.

    “The Singapore store is a proof of concept. It is where we will actually test the technology and make sure the kinks are ironed out before we roll out in other countries,” Ong said.

    Future locations are more likely to be in shopping complexes rather than industrial estates.

  • Honestbee seeks court protection in order to survive

    Honestbee seeks court protection in order to survive

    Sinking in debts of around US$180 million, Singapore grocery retailer Honestbee is seeking court protection from creditors to allow it to restructure.

    The company has applied to the High Court to commence a process which reportedly would give it six months protection from creditors lodging winding up procedures or other legal attempts to recover what they are owed.

    News of the move surfaced late Friday at the same time the company confirmed it was laying off 38 staff in Singapore.

    “As a result of our reduced operations globally, the company has made a decision to rightsize the company in order to cut costs and streamline its business,” a spokesman said in a  statement to the Straits Times.

    “The move is necessary to ensure that the company has the right structure in place for long-term stability and success.”

    Friday’s news came one week after the company announced the appointment of a new CEO, Ong Lay Ann, who has actually been in the role since July 15, atkin over from interim CEO and investor Brian Koo, who remains chairman. That followed the resignation of CTO and co-founder Jonathan Low four days earlier.

    Koo is also a founding partner in Formation Group, one of Honestbee’s largest creditors. Koo is part of the family which owns South Korean industrial giant LG. Parties associated with the Koo family are said to be owed as much as $50 million by Honestbee.

    In a statement, Honestbee said a court-supervised restructuring would allow management to focus on re-evaluating the business free from interference, to streamline operations, improve efficiencies and reduce overheads.

    “As part of the restructuring process, Honestbee will work closely with their advisers, creditors and stakeholders to achieve the best possible outcome for all interested parties,” the company said.

  • Honestbee back on track with new CEO

    Honestbee back on track with new CEO

    Struggling grocery delivery company and grocer Honestbee has won another new lease on life with the appointment of a new CEO who has promised to revive the business with the support of investors.

    Details of the additional investment were not immediately clear.

    Ong Lay Ann took up the role without fanfare on July 15 from interim CEO and investor Brian Koo, who remains chairman. That followed the resignation of CTO and co-founder Jonathan Low four days earlier.

    Koo had taken over from Honestbee former CEO and cofounder Joel Sng in early May, clearing the way for fresh funding to be injected into the company by Koo’s investment vehicle.

    New appointee Ong has almost 20 years experience in IT, infrastructure, commodities and real estate. He has experience turning around failing companies, including Perth Precast in Australia which he rebuilt and listed via a reverse takeover.

    Low cofounded Honestbee in 2015 with partners Sng and Isaac Tay.

    “It is my privilege to have worked with some of the best talents during my time here,” he said in a statement confirming his departure.

    “The decision to leave Honestbee was made before Lay Ann had come on board. However, I have full confidence that Lay Ann will help Honestbee enter its next phase and recover from its recent setbacks,” Low said.

    So far this year, Honestbee has curtailed services, suspended operations or exited altogether markets including Thailand, Hong Kong, Japan, Indonesia, Taiwan and the Philippines.

  • Honestbee Taiwan Stops Delivery Services

    Honestbee Taiwan Stops Delivery Services

    Ailing Singaporean grocery-delivery service Honestbee is “temporarily closing” its Taiwan operations as it continues to focus on its core Southeast Asian markets to ensure survival.

    “Thank you for your support and affirmation for Honestbee during these days,” the company’s Taiwanese team posted on Facebook at the weekend.

    “Unfortunately, the Taiwan operations team received instructions from Singapore headquarters that will temporarily stop all operations in Taiwan.”

    The post said services would resume when “the operation problems in Taiwan can improve and be resolved”.

    In February Honestbee owed nearly 300 local restaurants NT$7.79 million (US$250,000) in outstanding payments for food bought by consumers, collected and delivered but never paid for by Honestbee. Some payments were settled by May, but the newspaper reports “some eateries are still due hundreds of thousands of NT dollars”.

    Taiwan’s Ministry of Economic Affairs has opened an investigation into the company, and Honestbee decided on June 26 to suspend operations effective last Friday (28th).

    Honestbee marketing manager Lee Wen-feng refused to confirm or deny that the business was shutting down in Taiwan.

    Honestbee’s problems came to a head in Singapore in early May when its co founder and CEO stepped down and the company suspended or closed down operations in five markets. Since then it suspended food deliveries in Singapore as well.

  • Honestbee Stops Food Deliveries in Singapore

    Honestbee Stops Food Deliveries in Singapore

    Honestbee Singapore is to halt food deliveries from Monday.

    The company said in a statement it would also suspend laundry services on the same date.

    The changes come as part of an in-depth strategic review of the business launched after the departure of cofounder and CEO Joel Sng who was replaced by cornerstone investor Brian Koo at the beginning of the month.

    “The decision was made to optimise the business structure, and to drive better focus and alignment with Honestbee’s current strategic priorities,” the company said in a statement.

    The decision brings to an end the roles of some 400 ‘delivery bees’ many of them part timers.

    “They have played a key role, and have been a critical part of the Honestbee family,” said the company. “During this transition, Honestbee remains committed to assist all delivery bees. The headcount in Singapore remains unaffected.”

    Honestbee says it will continue to operate the grocery-delivery service, and its physical space – Habitat by Honestbee.

    “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.”

    Lees ook:

  • Honestbee CEO Departing to get more Funding

    Honestbee CEO Departing to get more Funding

    Interim replacement from cornerstone investor, suggesting much-needed funds will soon be injected to save the startup.

    Honestbee CEO and cofounder Joel Sng has stepped away from the business, clearing the way for a fresh round of investment which would ensure the startup’s survival.

    His place has been taken by Brian Koo, the grandson of the founder of South Korean industrial giant LG and who oversees US-headquartered investment fund Formation Group, one of the key investors and shareholders in Honestbee. Koo’s role has been termed “interim CEO”.

    While Honestbee in an unattributed statement said Sng was “stepping down” as Honestbee CEO the exact circumstances of his departure are less clear.

    The Straits Times reported early yesterday that Sng had sent an email to staff signalling his intention to leave the role, while TechCrunch, which has been reporting extensively on Honestbee’s challenges in recent weeks and is well connected with inside sources, said Sng had been fired and had vacated his desk on Tuesday.

    DealStreetAsia quoted an email from Sng which it had seen, in which Sng apologised to the Honestbee team: “Over the past year, our business has grown significantly, and operating and scaling across eight countries is not without its challenges. We acknowledge that the board could have provided the company more guidance and we apologise for not doing more.

    “…All of you have given blood, tears and sweat to get us this far. These are the moments when we have to be strong. I want all of you to know that I am in this with you, fighting every day beside you. We might be judged by our mistakes, but we will be remembered by our success in the future,” he said.

    Earlier reports had suggested concerns about financial decisions and management of the business had proved a major barrier to attracting urgently needed funds to keep the business running, in particular a scheduled funding round in January from a Japanese investor.

    Brian Koo took over the role yesterday in a move at least one observer is seeing as a precursor to Formation Group injecting more capital.

    Earlier this week, Honestbee confirmed it was shutting its operations in five markets – Thailand, Hong Kong, Japan, Indonesia and the Philippines. However a spokesperson in an emailasked to clarify that the company had not decided to exit those markets, rather it had “halted or temporarily suspended operations” in them.

    Regardless of the exact circumstances of Sng’s departure, Koo was magnanimous in recognising the cofounder’s role in establishing the business.

    “I would like to express my appreciation for Joel, as he steps away from his current role, for taking Honestbee from zero to one,” he said in a statement.

    “I will be working with the executive team to conduct an in-depth review of our business to focus and align our strategic interests across our various geographies and verticals, and take the opportunity to articulate a clear vision for the future of honestbee.”

    In the same statement Sng said Koo had been Honestbee’s earliest supporter and a key investor.

    “He was also instrumental in helping us define Honestbee’s purpose and mission from day one. I am confident that he would (sic) be able to bring the company to the next level, supported by the newly appointed executive team comprising key leaders of our organisation.”

    “We will continue to innovate and improve our business to stay relevant in today’s rapidly changing business environment. We remain committed to making great food experiences accessible to customers across Asia.”

    Lees ook:

    Lees ook:

  • Honestbee Shutting Down in Several Countries

    Honestbee Shutting Down in Several Countries

    Singapore grocery-picking startup puts a positive spin on its predicament as it seeks investors.

    Honestbee has shut down or suspended operations in five countries as it seeks funding to continue to trade in its core markets, including home base Singapore.

    As previously reported by Inside Retail Asia, Honestbee has suspended operations in Hong Kong and Thailand. Yesterday, the company clarified that it had “halted services” in Indonesia and Hong Kong and its food vertical in Thailand. Services in Japan and the Philippines have been suspended.

    The grocery-delivery startup founded in 2015 has run out of cash but is putting a positive spin on its predicament.

    “Over the past four years, we have demonstrated commitment to our staff, partners and customers, and continue to innovate and improve our business to stay relevant in today’s rapidly-changing business environment,” the company said in a statement.

    “The launch of Habitat by Honestbee in Singapore last October marks the next phase in our evolution as a food company.”

    Honestbee said 10 per cent of its staff had been laid off. It did not refer to the number of resignations over recent months, which have included senior management, such as the head of the Philippines operation. One media outlet reported that between 50 and 70 staff had voluntarily resigned.

    The company said the curtailment of operations in five markets was necessary “to help us focus and align our regional business, and more importantly, to enable us to better meet our customers’ needs”.

    “The status of Honestbee’s business in the remaining markets stands unchanged.”

    Honestbee said media reports regarding a delay in employees being paid were untrue.

    “We will ensure that all employees across all markets, including Singapore, are paid in a timely manner. In addition, we are also committed to fulfilling our financial obligations to all Bees (store pickers), partners and vendors.”

    Meanwhile, the hunt for new investors continues. According to DealStreetAsia, Grab has been approached, but declined to be involved, as it is a shareholder in Honestbee’s rival HappyFresh.

    Lees ook:

    Lees ook:

  • Honestbee running out of Funds

    Honestbee running out of Funds

    Innovative startup runs out of cash; suspends Hong Kong and Thai operations. Honestbee is freezing operations in Hong Kong and Thailand and laying off staff as it urgently seeks investment to stave off collapse.

    According to an in-depth, citing multiple industry sources, the Singapore-headquartered food-delivery business turned innovative food-and-grocery retailer has nearly run out of money and is unlikely to be able to pay staff this month.

    “From talking to several former and current staff, Honestbee is laying off employees, it has a range of suppliers who are owed money, it has “paused” its business in the Philippines, it has closed R&D centers in Vietnam and India, it isn’t going to make payroll in some markets and a range of executives have quit the firm in recent months,”.

    However, the potential for the sale or rescue of the business is high. The company has held talks with Grab and its rival GoJek over the potential acquisition of all or part of the business.

    Honestbee was founded four years ago. Its core business concept is using store pickers to shop for groceries at various food retailers, with orders completed on apps and shipped by delivery staff to consumers. It operates in Hong Kong, Taiwan, Thailand, Indonesia, the Philippines, Malaysia and Japan, as well as its home market. In suburban Singapore it has opened a technology-run physical retail store listed this month as one of the world’s ‘must-see’ stores.

    Honestbee’s dire predicament is the result of high marketing costs faced by most online startups in Asia: building critical mass takes massive investment in digital marketing, discounting and – especially in the case of delivery apps – recruitment.

    We have been shown financials for the company from last December which showed revenue of S$2.5 million (US$1.8 million) and a loss of $6.5 million on transactions totalling $12.5 million.

    About 80 per cent of the company’s revenue comes from Singapore, Taiwan and the Philippines.

    Honestbee issued a statement earlier this month attempting to put a positive spin on its perils, saying the decision to “temporarily” suspend its food verticals in Hong Kong and Thailand followed a strategic review of the company’s business, so it could “simplify what we do and how we do it to better meet what our consumers want”.

    The company said 6 per cent of its global staff would be laid off.

    “The status of Honestbee in the remaining markets remain unchanged as we evaluate and we will continue to operate and contribute to Honestbee Pte Ltd.”

    In addition to the layoffs announced, senior management have already left the company in the Philippines, Japan and Indonesia.

    Lees ook:

    Lees ook:

    Lees ook:

  • Habitat by Honestbee Flies High with global Retail Innovation

    Habitat by Honestbee Flies High with global Retail Innovation

    Habitat by Honestbee has been voted one of the must-see retail innovations in the world this year. The concept was listed among the top 16 stores to visit in the world by IGD, and Google reports it among the top 10 trending searches in Singapore last year.

    The 60,000sqft flagship store opened last October, offering more than 20,000 essential and unique food and grocery products.

    The store is billed as the world’s first tech-enabled food-and-grocery concept which uses technology to provide a seamless shopping experience with human interaction.

    According to Honestbee, customers are spending an average of two hours at the store – considerably more time than people spend in a single visit to any other supermarket in Singapore.

    Close to 500,000 people spanning all age groups have visited the store, despite its remote location. The two largest demographic groups of customers fall between the ages of 26 – 35 years old (41 per cent) and 36 – 45 (28 per cent). Two in three customers are family groups who visit the store, attracted by the mix of grocery and dining and its friendly neighbourhood feel.

    “We are pleased to have had such a resounding success since the launch, not just with customers, but also with the business community in retail, property, grocery and F&B,” said Pauline Png, Habitat by Honestbee MD.

    “Strong sales growth pushes us to continue delivering a memorable experience for customers to visit, try new products and return. This tactility that Habitat by Honestbee provides ignites a curiosity for our products, which are also available online.”

    Future growth plans

    Png says Honestbee will soon be providing an option to combine food carts on the app, enabling orders from multiple F&B concepts at the store on one receipt.

    More engaging product information and content will be added in time, along with personalised recommendations.

    “The launch of Habitat by Honestbee has allowed us to elevate our business into an omnichannel platform and work with partners like no other online player can,” said Joel Sng, CEO and founder of Honestbee.

    “Habitat by Honestbee has built on our brand’s promise and expertise in using data to optimise the customer experience.”

    Sng says the company is confident it can expand the concept into other markets.

    “In the second quarter of the year, we will be extending our food-retail leadership in Asia by launching a scalable, multi-concept kitchen and convenience store powered by data.”

    Honestbee started in early 2015 as an online concierge and food-delivery service.

  • Habitat by Honestbee expands choices

    Habitat by Honestbee expands choices

    Habitat by Honestbee has added two new outlets to its 15 existing eateries.

    The first, Hama Hama, is a seafood bar with Asian-centric small plates and a seasonal sharing menu, with oysters at its core.

    The second new offer is B Bar, located near the liquor aisle and serving classic drinks along with cocktails featuring local and Asian flavours. Mocktails are also available.

    Honestbee, the online grocery-delivery service, opened its 60,000sqft Habitat last November.  The full-scale supermarket hosts more than 20,000 Asian and global foods and ingredients as well as daily essentials, which can be purchased both online and offline.

    Lees ook:

    Lees ook:

  • Honestbee risk losses with new experimental offerings

    Honestbee risk losses with new experimental offerings

    Online grocery service Honestbee has opened a retail space which merges cashless grocery store with a restaurant and a testbed for new retail technologies.

    Habitat by Honestbee in Pasir Panjang is billed as “the world’s first tech-integrated multi-sensory grocery and dining destination of its kind”. While Chinese online behemoth Alibaba may well challenge that claim, Habitat is certainly a revolution in Southeast Asia, boasting a cashless checkout experience and a fully automated robotic collection point, called RoboCollect.

    Spanning 60,000sqft, Habitat by Honestbee is a full supermarket with more than 20,000 Asian and global foods and ingredients as well as daily essentials, which can be purchased both online and offline.

    The store also features 15 unique food and beverage concepts ranging from grain bowls and grilled wagyu meats to Japanese souffle pancakes and homemade kombuchas, all available to eat on site or take away.

    More features are under development, including an invitation-only private dining space, an oyster bar, an entire section devoted to charcuterie and cheese, and a hidden bar.

    Honestbee says the new space heralds the arrival of NewGen Retail, a concept defined as “innovation in retail technology that inspires more human engagement for a multi-sensory experience” and not hugely dissimilar to Alibaba’s New Retail concept.

    For purchases of 10 items or less, shoppers can use the Scan & Go function on the Honestbee app, so they can skip the checkout line and get their items on the spot. Those with bigger shopping lists can drop off their trolleys at the convenient AutoCheckout and Habitat will take care of the scanning and packing, with bags ready for collection at the RoboCollect Stations.

    Honestbee says customer orders can be processed between checkout and collection in as little as five minutes.

    Online grocery orders are fulfilled by ‘Shopper Bees’ (Honestbee staff) using overhead conveyor belts for greater productivity before ‘Driver Bees’ pick them up for delivery.

    Purchases can be paid for securely using BeePay, Honestbee’s own digital wallet, either online or offline.

    “Habitat by Honestbee is a beautiful, physical extension of the honestbee brand we all love,” said VP and MD at Habitat by Honestbee, Pauline Png.

    “With its launch, we now provide tech-enabled convenience, value and quality through food in both the online and offline experience. It is a unique combination of a full supermarket, speciality grocer, dining and interactive lifestyle destination. In this innovative space, one can expect a multi-sensorial food experience that nourishes, educates and inspires. We designed it so that customers can get their groceries and meals efficiently but also linger and enjoy the experience.”

    View the full gallery of the newest Habitat store below (16 images) :

    Lees ook:

    Lees ook:

    Lees ook:

  • Honestbee aims for national expansion in the Philippines

    Honestbee aims for national expansion in the Philippines

    After launching last year, online grocery- and food-delivery service Honestbee Philippines has set a goal of national expansion.

    Set up in Singapore in 2014, the concept soon spread to such neighbouring countries as Malaysia, Taiwan, Indonesia, Thailand, Hong Kong and Japan.

    In the Philippines, meanwhile, the Honestbee team has grown from five members to 150 “and counting”, says country manager Crystal Lee-Gonzalez. “We have about 100 grocery partners and nearly 300 food partners on the platform.”

    Services have expanded to include Metro Manila areas like Antipolo, Cainta, Malabon, Malolos Bulacan, Marikina, Meycauayan, Novaliches and Valenzuela. It has also launched in Metro Cebu, with other locations such as Camanava under consideration.

    “Right now, we have our eyes on highly populated urban areas with relatively difficult traffic conditions, such as Dasmariñas, Imus and Lipa,” says Lee-Gonzalez.

    Aside from online grocery shopping, a Wet Market Concierge Service has been added. Consumers can choose and buy the best produce and freshest seafood from the Alabang Wet Market, Cubao Farmer’s Market and the Pasay Wet Market.

    Honestbee has also launched concierge services for laundry pick-up and delivery (including dry-cleaning), and will soon offer deliveries from restaurants.

  • Honestbee’s Shared Cart is the next big step in food delivery ordering

    Honestbee’s Shared Cart is the next big step in food delivery ordering

    Honestbee, Asia’s leading online delivery service for food and grocery concierge, is creating a real buzz by introducing a new feature called Shared Cart to its food delivery service.

    Shared Cart is fast, free and easy to use.

    How it works:

    1. An honestbee food user selects a restaurant then clicks on the ‘Order with Friends’ button. Now the “Shared Cart” is created!
    2. They get a link they can share via any messaging app they like.
    3. Anyone who has the link can add food orders to the shared cart for the next 30 minutes.
    4. Combined into one single payment and delivery

    Users of the Shared Cart will add their own food choices to a shared order using the honestbee app on their own desktop or mobile device. The menu items for these users in the same group are sent to a restaurant as one combined order and the food is delivered in one single quick delivery. Plus, as it’s a combined order, customer will only need to pay one delivery fee since it’s considered as one order. Saving you time and money!

    The Shared Cart will save time, energy and delivery costs in office or group of friends.

    Here are the advantages from using honestbee’s Shared Cart:

    • No more headaches trying to coordinate complicated group orders or being resented for writing down the wrong order;
    • No more missing out on ordering;
    • No more multitudes of sticky notes;
    • No more tracking down busy execs who are always “in a meeting”;
    • No more interruptions of productive meetings

    The honestbee food delivery Shared Cart also promises food-delivery-freedom for Bangkok’s millennials.  Couples can order separately on their way back from work in time for their meetup. Friends can chill-out, and order food without having to stop what they are doing and debate what to order. Shared Cart fits with today’s busy, modern and mobile lifestyles. On top of that, the service is free in delivery.

    Lees ook:

    Lees ook:

    Lees ook: