By Zaheer Kachwala (Reuters) – Grab Holdings provided a lower annual revenue forecast on Wednesday, falling below the expectations of analysts. The company is facing stiff competition in both the food delivery and ride-hailing sectors, causing its U.S.-listed shares to drop more than 9% after hours. For the fiscal year 2025, Grab expects its revenue to range between $3.33 billion and $3.40 billion. This midpoint falls short of the average analyst estimate of $3.40 billion, as per data compiled by LSEG.
Grab is encountering competition from smaller players like Foodpanda and Indonesia’s GoTo in the realm of food delivery, adding to concerns during a period of weak consumer sentiment due to macroeconomic uncertainties. Reuters previously reported, citing sources familiar with the situation, that Grab and GoTo were in advanced discussions regarding a potential merger to enhance their market presence as a combined entity. However, Grab’s Chief Financial Officer Peter Oey declined to confirm this information, emphasizing that the company maintains high standards for any mergers or acquisitions.
Contrary to the speculation, GoTo stated that it is not currently involved in talks about a potential merger deal. To remain competitive in a crowded market, Grab has been working to expand its subscriber base and increase user engagement on its app, which offers various services such as food delivery, ride-hailing, and its rapidly growing financial division. Oey highlighted the strong retention of Grab’s subscriber base, noting that the platform now has more subscribers than ever before, with paid members spending significantly more than non-subscribers.
In the fourth quarter, Grab’s delivery revenue amounted to $407 million, slightly below the average estimate of $408 million. Revenue from its mobility segment also fell short of analysts’ projections. Overall, Grab reported a fourth-quarter revenue of $764 million, surpassing the estimated figure of $757.6 million.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Shilpi Majumdar and Alan Barona)
