Grab anticipates turning a profit by the second half of 2024

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Last Updated on September 27, 2022 by Bitfinsider

According to company authorities, Grab, the largest ride-hailing and food delivery service in Southeast Asia, anticipates reaching break-even on adjusted EBITDA by the second half of 2024. (Sep 27).

For the second half of 2022, it anticipates an adjusted EBITDA loss of US$380 million, which represents a 27% improvement over the year’s first half.

Grab also stated that, on a constant currency basis, it anticipates 2023 group revenue to increase by 45% to 55% year over year.

By 2026, it anticipates its digibank activities to become profitable.

Investor pressure has been mounting on Grab, which debuted on the Nasdaq in December following a record US$40 billion merger with a blank-check startup, to reduce losses from its ten-year-old business.

Grab’s shares have lost 61% of their value so far this year as investors reevaluate growth forecasts in the face of rising interest rates and faltering economies, reflecting a global decline in IT prices.

In a recent interview with Reuters, Grab stated that while hiring wisely and limiting its financial sector goals, the company does not anticipate needing to implement mass layoffs as some competitors have done.

Grab reported a second-quarter loss last month that was US$572 million, down from US$801 million in the same period last year. However, it reduced its forecast for gross merchandise volume for the year, blaming a strong currency and declining demand for food delivery.

More than 5 million registered drivers and more than 2 million merchants use the Grab platform, which operates in 480 cities across eight countries.

Similar to its rivals, including GoTo, Indonesia’s largest tech company, Grab benefitted from the COVID-19 pandemic’s surge in food delivery services, but its core ride-hailing business suffered and is still not back to pre-COVID levels.

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