Singapore’s Grab raised its annual revenue forecast on Aug 4, betting on stronger demand for its ride-hailing and delivery services, helped by promotional offers and platform expansion efforts by the company.
Shares of the Nasdaq-listed company, down over 26 per cent so far this year, rose more than 3 per cent in extended trading.
Grab, the biggest ride-hailing and delivery firm in South-east Asia, also announced a new US$750 million share buyback programme.
The company has banked on features such as order bundling and a budget-friendly service tier called “Saver” to drive demand in its core ride-hailing and delivery businesses, aiming to win over cost-conscious consumers grappling with higher fuel prices following the Iran war.
The company is also rapidly scaling its grocery delivery operations – one of its fast-growing segments – and financial services business by building out its loan and insurance offerings for riders and merchants on its platform.
Grab now expects total revenue of between US$4.10 billion and US$4.15 billion for 2026, compared with its prior projection of US$4.04 billion to US$4.10 billion. Analysts on average expect annual revenue of US$4.12 billion, according to data compiled by LSEG.
It reported total revenue of US$997 million in the second quarter ended June, up 22 per cent from a year earlier, and above analysts’ estimate of US$990.8 million. REUTERS
