Grab Revenue Forecast Misses Estimates
Grab Holdings projected lower-than-expected revenue for fiscal 2025, signaling difficulties in the face of stiff competition from rivals in both the ride-hailing and food delivery industries. The announcement led to a more than 9% drop in its U.S.-listed shares in after-hours trading on Wednesday.
Grab Revenue Projection Details
The company estimates its 2025 revenue to be between $3.33 billion and $3.40 billion, with the midpoint falling short of analysts’ expectations of $3.40 billion, according to LSEG data.
Growing Market Competition
Grab competes with companies like Foodpanda and Indonesia’s GoTo in the food delivery sector, intensifying concerns as macroeconomic conditions weigh on consumer confidence.
Merger Talks Rejected
Reuters previously reported, based on sources, that Grab was in discussions for a potential merger with GoTo to strengthen its market position. However, CFO Peter Oey stated that they does not engage in speculation and holds a high standard for mergers and acquisitions. GoTo, in turn, denied being involved in such talks.
Efforts to Expand Subscriber Base
To remain competitive, Grab has been focusing on expanding its subscriber base and encouraging greater user engagement across its diverse platform, which offers ride-hailing, food delivery, and financial services. Oey noted that subscriber retention is strong, with paid members spending significantly more than non-subscribers.
Q4 Financial Overview
For the fourth quarter, Grab reported $407 million in delivery revenue, slightly below the expected $408 million. Revenue from its mobility segment also missed projections. Total revenue for the quarter stood at $764 million, exceeding analysts’ estimates of $757.6 million. Grab Holdings forecasts 2025 revenue below analyst estimates amid rising competition. Its U.S.-listed shares declined 9%. The company denied merger talks with GoTo while focusing on growing its subscriber base. Q4 revenue narrowly missed expectations but showed resilience. read it now.
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