earnings reports

Grab takes a hit from coronavirus curbs

Grab takes a hit from coronavirus curbs

GRAB. A Grab motorbike helmet is displayed during Grab's fifth anniversary news conference in Singapore on June 6, 2017.

Edgar Su/Reuters

Fresh COVID-19 outbreaks in Southeast Asia hit Grab's mobility unit in the third quarter of 2021

Southeast Asia‘s largest ride-hailing and food delivery firm Grab Holdings on Thursday, November 11, reported a 9% decline in third-quarter revenue, as its mobility business was hit by coronavirus curbs in some countries in the region.

Fresh outbreaks in Southeast Asia hit Grab’s mobility unit that fell behind its deliveries business, its largest by billings. Its mobility business brought in $88 million in revenue, down 26% from a year earlier, while sales at its deliveries unit rose 58%.

“Mobility and food delivery services were suspended in Vietnam for most of Q3, and six of our core countries in which we operate experienced tighter movement controls,” said chief financial officer Peter Oey.

Grab is also seeing rising competition in the space from other “super apps” that provide a host of services under one app like Gojek in Indonesia.

Singapore-based Grab, which clinched a $40-billion merger with blank check firm Altimeter Growth Corporation in April, the biggest of its kind, is nearing its US listing.

Founded in 2012 as a regional taxi app in Malaysia, the SoftBank Group-backed company operates a “super app,” which provides ride-hailing, food, and grocery delivery, mobile banking, and payments in over 400 cities in eight countries in Southeast Asia.

The company’s adjusted loss before interest, taxes, depreciation, and amortization widened 66% to $212 million.

Total revenue fell to $157 million for the quarter ended September 30, from $172 million a year earlier. – Rappler.com