SINGAPORE: Grab Holdings is raising its earnings forecast for the year after quarterly profit tops estimates, helped by novel offerings such as shared rides and deliveries that drew consumers during an economic downturn.
The Singapore-based company predicted US$490mil to US$500mil in adjusted full-year earnings before interest, taxes, depreciation and amortisation, more than the US$480mil it had forecast earlier.
Grab also narrowed its full-year sales forecast range, keeping the higher end unchanged at US$3.4bil.
New products such as shared rides and group food orders are helping Grab fend off competition from Indonesia’s GoTo Group and smaller contenders throughout the South-East Asian region of about 675 million people.
Chief financial officer Peter Oey told Reuters that in the deliveries segment, about a third of new monthly transacting users come from the affordable channels, and about 40% of them are upselling into more standard products.
“What we’re seeing is more engagement from these saver platforms, and also they’re spending more frequent at the same time as we are able to upsell them,” Oey said. — Bloomberg
