Grab Revenue Shortfall Raises Concerns
Grab Holdings has issued a revenue projection that falls below analyst expectations, highlighting the mounting challenges it faces in both the ride-hailing and food delivery markets. Its U.S.-listed shares dropped more than 9% after the announcement.
Grab Projected Figures for 2025
The company expects revenue to range between $3.33 billion and $3.40 billion, with the midpoint of this range falling short of analysts’ average estimate of $3.40 billion, according to LSEG data.
Competitive Landscape Heats Up
Grab continues to face tough competition from Foodpanda and Indonesia’s GoTo, particularly in the food delivery sector, which remains a significant driver of revenue. Economic uncertainties have further dampened consumer sentiment.
No Merger Plans, Says Grab
Reuters previously reported that Grab and GoTo were in merger discussions to expand market dominance, but CFO Peter Oey dismissed these reports, reiterating that they does not engage in speculation and adheres to strict M&A standards. GoTo also denied the merger rumors.
Subscriber Retention Strategies
To strengthen its position, Grab has been enhancing its subscriber base, with paid users reportedly spending four times more than non-paying customers. The company aims to leverage this trend for long-term growth.
Q4 Grab Financial Performance
Delivery revenue for Q4 was $407 million, narrowly missing the $408 million estimate. The mobility segment also underperformed. However, total revenue for the quarter reached $764 million, slightly above the expected $757.6 million. Grab’s Holdings forecasted lower-than-expected 2025 revenue, causing a 9% stock drop. The company denied merger rumors with GoTo and focused on subscriber growth. Competition from Foodpanda and GoTo remains a challenge. Q4 results showed mixed outcomes, with total revenue slightly exceeding estimates.
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