Singapore’s Grab reported first-quarter profit that exceeded analysts’ estimates, helped by resilient demand for ride hailing and delivery in a market rattled by economic and political challenges.
Southeast Asia’s biggest ride-hailing and delivery firm has been trying to boost spending on its platform by incorporating artificial-intelligence features into its superapp and bundling its core ride-hailing, delivery and financial services.
With oil and gas prices soaring due to the war in the Middle East, the company has also promoted more affordable offerings, including a “saver” option, to woo customers grappling with higher costs of living.
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About 35 per cent of its users are on the “saver” programme, opting for cheaper deliveries, CFO Peter Oey said.
“It is a very good balance between the price-sensitive customers and for those who are less price-sensitive. That gives us the levers also to continue to make sure that our margin for our delivery business continues to improve,” he said.
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Grab’s quarterly revenue rose 24 per cent from a year earlier to US$955 million, compared with analysts’ estimates of US$921.1 million, according to data compiled by LSEG.
Deliveries revenue increased 23 per cent to US$510 million, while mobility revenue was up 19 per cent at US$337 million.