Grab, Southeast Asia’s biggest ride-hailing and food delivery firm, on Thursday (Feb 23) forecast its annual revenue above estimates on bets that consumers will continue to rely on its services following a pandemic-driven demand boom.
Grab and rivals such as Indonesia’s PT GoTo Gojek Tokopedia Tbk and Uber benefited from higher demand for delivery services during the COVID-19 pandemic and consumers have continued to rely on those services, while reopening of offices and travel have boosted their rideshare businesses.
Decade-old Grab, a household name in eight Southeast Asian countries, forecast its 2023 revenue between US$2.20 billion and US$2.30 billion. Analysts have forecast annual sales to scale US$1.97 billion, according to Refinitiv data.
The company has advanced its forecast for group break-even on an adjusted core earnings basis to the fourth quarter of 2023, from its prior expectations of the second half of 2024.
Grab also delivered an about four-fold revenue surge in the fourth quarter to US$502 million, helped by higher demand and a reduction in incentives.