Singapore-based ride-hailing and payments platform, Grab reported a revenue plunge of over 44% to US$122 million for the fourth quarter (Q4) that ended December 2021.
The pandemic caused a downturn in its mobility and delivery business especially during 2021.
Grab, founded in 2012, is a Southeast Asian technology company based in Singapore and Indonesia.
The company offers ride-hailing, food and grocery delivery, and digital payments services via its super-app.
Key Highlights
- After reporting its quarterly loss, Grab shares crashed 37% to US$3.28 on 3 March.
- Last December, Grab went public in the world's largest blank-cheque deal but its shares has been declining since, wiping over US$15 billion from its market value as of 2 March.
- Grab's revenue from mobility fell 27% to US$105 million while gross merchandise value (GMV) fell 11% to US$765 million.
- Even though GMV in the delivery segment rose 52% to US$2.4 billion, revenue fell 98% to US$1 million.
- It is reported that Grab has been investing in incentives to get drivers back to the platform as the driver demand went up and the company is still keeping up in terms of supply.
- Net loss for Q4 was US$1.1 billion, which included expenses related to its IPO, almost doubled when compared to a year ago.
- Grab, backed by Softbank is facing rising competition from its Indonesian ride-hailing rival, Gojek, which also provides a host of services under its own super-app.
- GoTo, a combined entity between Gojek and e-commerce provider PT Tokopedia is preparing for an initial public offering at home and in the US this year.
