Grab Holdings surpasses analysts’ expectations on consumer outlay
Gains traction among users seeking a one-stop shop for daily mobility and requirements
Singapore-based multinational technology firm Grab Holdings has surpassed the expectations of analysts for the third-quarter revenue.
Its third-quarter revenue for the deliveries segment stood at $465 million, compared with estimates of $470 million.
The robust consumer spending on food and grocery-delivery, ride-hailing services, and financial services ‘superapp’ was a result of the platform’s expansion. It gained strong traction among consumers seeking a one-stop shop for their daily mobility and lifestyle needs.
While users navigate an uncertain economy, shaped by rising tariffs, Grab focused on affordable options to attract cost-conscious consumers and braced itself against economic slowdowns.
Peter Oey, CEO Grab Holdings said that in the deliveries segment, about a third of new monthly transacting users are from the affordable channels, and 40 percent opted for standard items.
Oey added, “What we’re seeing is more engagement from these savings platforms or affordable products. They are spending more frequently at the same time, as we upsell them.”
With the rising competition across Southeast Asia’s service sector, Grab aims to leverage its ride-hailing platform to expand into the autonomous robotaxis market, a segment expected to witness strong future growth.
According to the London Stock Exchange Group (LSEG) data, the technology firm raised the lower end of its annual revenue forecast to $3.38 billion from $3.33 billion, leaving the upper end unaltered at $3.40 billion. It reported a revenue of $873 million during the period, compared with analysts’ average estimate of $872.9 million.
The company also raised its annual adjusted earnings before interest, taxes, depreciation and amortization forecast to between $490 million and $500 million, from its previous forecast of between $460 million and $480 million.