Grab’s Q2 revenues grow 79% to US$321M; losses narrow by 29%

Southeast Asia’s super-app giant Grab Holdings reported a 79 per cent rise in its revenue, reaching US$321 million, driven by solid growth in mobility and delivery, including Jaya Grocer’s contributions.

The losses for the quarter narrowed by 29 per cent to US$572 million from a year ago.

“In the quarter, we streamlined our organisational cost structure. We optimised our fixed costs, shut unprofitable lines of business and continued to taper incentives as a percentage of GMV,” said Grab CFO Peter Oey.

In Q2, the firm closed GrabWheels support operations in Malaysia and Singapore in the mobility segment. It also combined Indonesia’s GrabWheels operations with its car rental business in the country.

In addition, it wound up its dark store operations in Vietnam, the Philippines, and Singapore.

The adjusted EBITDA for the quarter ending June rose marginally to US$233 million from US$214 million y-o-y. This is attributed to reduced spending on incentives as a percentage of GMV.

Also Read: Grab acquires Jaya Grocer to expand its on-demand grocery delivery in Malaysia

The total gross merchandise value for the three-month period stood at US$5.1 billion, rising by 30 per cent over Q2 2021. Grab also announced that engagement with the users improved in the quarter, with monthly transacting users (MTUs) up 12 per cent y-o-y to reach 32.6 million, driven by strong mobility segment MTU growth. The average spend per user, defined as GMV per MTU, rose 16 per cent to US$155.

According to Group CEO Anthony Tan, Grab’s deliveries segment continued to grow in Q2, despite tougher year-on-year comparisons and as dine-out trends moderated food delivery demand. The company is laser-focused on accelerating its path to profitability.

In the mobility segment, GMV grew 51 per cent, and revenue rose 37 per cent y-o-y as ride-hailing demand continues to be strong. Mobility achieved segment adjusted EBITDA margin of 12.1 per cent for the second quarter, an increase of 224 basis points versus the prior quarter and in line with our expected steady-state margins of 12 per cent.

“We will get there (profitability) by doubling down on product innovation that increases user engagement and reduces our cost-to-serve and focusing on growing high-quality transactions on our platform,” added Tan.

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