Grab Faces Revenue Challenges in 2025
Grab Holdings has forecasted lower-than-expected revenue for fiscal 2025, sparking concerns about its market position. The announcement led to a 9% decline in U.S.-listed shares during after-hours trading.
Grab Revenue Expectations vs. Reality
Grab estimates its revenue for 2025 to range between $3.33 billion and $3.40 billion, slightly below the analyst consensus of $3.40 billion, according to LSEG data.
Tough Competition in the Market
The company is grappling with competition from players like Foodpanda and Indonesia’s GoTo, particularly in the food delivery sector. Weak consumer sentiment due to economic volatility has further pressured the business.
Merger Speculation Rejected
Recent media reports suggested a potential merger between Grab and GoTo to consolidate market share. However, CFO Peter Oey stated that it does not comment on speculation and has strict criteria for mergers. GoTo also denied involvement in such discussions.
Grab Expanding the Subscriber Base
Grab is focusing on boosting its subscriber numbers to increase engagement across its platform. Paid subscribers are a key driver, spending four times more than non-subscribers, according to Oey.
Q4 Financial Summary
Grab’s delivery segment posted $407 million in Q4 revenue, slightly below the $408 million estimate. Mobility revenue also missed targets. However, total revenue for the quarter stood at $764 million, exceeding expectations of $757.6 million. Grab’s Holdings announced a 2025 revenue outlook below estimates, leading to a 9% stock drop. Despite competitive pressures from Foodpanda and GoTo, the company denied merger talks and focused on subscriber retention. Q4 revenue slightly exceeded expectations but remained under pressure.
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