Grab Revenue Forecast Below Expectations
Grab Holdings’ revenue forecast for the upcoming fiscal year fell short of analysts’ expectations, reflecting the challenges posed by fierce competition in the ride-hailing and food delivery markets. The company’s U.S.-listed shares declined over 9% in after-hours trading following the announcement on Wednesday.
Projected Grab Revenue Range
For fiscal 2025, they expects revenue to range between $3.33 billion and $3.40 billion. The midpoint of this projection is slightly below the analyst consensus of $3.40 billion, as per LSEG data.
Competitive Pressures Intensify
Grab continues to face competitive pressure from smaller players like Foodpanda and Indonesia’s GoTo in the food delivery sector. This competition compounds concerns amid weak consumer sentiment and economic uncertainties.
Merger Speculation Dismissed
Recent reports from Reuters, citing insider sources, suggested that Grab was in advanced discussions regarding a potential merger with GoTo to enhance market share. However, CFO Peter Oey dismissed such reports, stating that it does not comment on speculation and that the company maintains high standards for mergers and acquisitions. GoTo, on its part, denied any active merger discussions.
Subscriber Growth Strategy
Amid the competitive landscape, Grab has been working on increasing its subscriber base and engagement across its ecosystem, which spans ride-hailing, food delivery, and financial services. According to Oey, subscriber retention remains strong, and paid members tend to spend four times more than non-subscribers.
Q4 Financial Performance
For Q4, Grab’s delivery segment generated $407 million in revenue, slightly missing the $408 million analyst projection. Similarly, mobility revenue failed to meet expectations. Overall, Grab posted $764 million in total revenue for the quarter, surpassing the estimated $757.6 million.Grab Holdings’ revenue forecast for 2025 fell short of expectations, facing tough competition in food delivery and ride-hailing.Its U.S.-listed shares dropped 9%. The company dismissed merger speculation with GoTo, focusing instead on subscriber growth. Q4 revenue slightly missed estimates, but overall performance remained strong.
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