SINGAPORE – Grab Holdings reported first-quarter profit that exceeded analysts’ estimates, helped by resilient demand for ride hailing and delivery after rolling out promotional offers and bundled features to attract customers grappling with higher costs.
Adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) rose to US$154 million (S$196.6 million) in the quarter ended March 31, the Singapore-based company said on May 5. Analysts forecast US$146.3 million on average, according to data compiled by Bloomberg.
Total revenue increased 24 per cent to US$955 million, also beating projections. Deliveries revenue grew 23 per cent to US$510 million, while mobility revenue was up 19 per cent at US$337 million.
Grab didn’t change its annual forecast, maintaining an annual sales outlook of US$4.04 billion to US$4.10 billion. It expects adjusted Ebitda of US$700 million to US$720 million.
The company’s shares gained about 2 per cent in late US trading after the results’ announcement.
Grab, backed by Uber Technologies, has seen growth slow dramatically from triple-digit rates in years past as it takes steps to focus on profitability. An increased customer base has left the company with less room for user gains, prompting it to introduce novel offerings – including AI-powered concierge tools.
With oil and gas prices pushed up by the war in the Middle East, Grab has leaned on promoting more affordable offerings such as shared rides and deliveries – where customers split costs with friends.
In a bid to alleviate the cutthroat competition, Grab has also been exploring a combination with Indonesian champion GoTo Group. The yearslong effort has been delayed by regulatory scrutiny as well as differences over perceived valuation. In the latest hurdle for a deal, negotiations have snagged over wireless carrier Telkomsel’s roughly 2 per cent stake in GoTo.
Indonesia is South-east Asia’s biggest ride-hailing market, with millions of drivers relying on app-based transport and delivery services. Protests over pay and working conditions have intensified in recent years, with many drivers unhappy with what they’ve described as exploitative app policies and regulatory negligence.
In a speech last week, Indonesian President Prabowo Subianto outlined a surprise plan to cap the ride-hailing commissions that companies like Grab and GoTo collect from drivers and riders in the region’s largest economy. The companies’ cut will be set at a maximum of 8 per cent of fares, compared with about 20 per cent previously, potentially squeezing margins and crimping revenue.
Grab has been buying up smaller companies to expand reach and bolster services amid ongoing industry consolidation. Earlier in 2026, it agreed to buy Delivery Hero’s Foodpanda delivery business in Taiwan for US$600 million, a major expansion that allows it to capture market share outside its home region. BLOOMBERG, REUTERS
