Grab, the Singapore-based tech company known for its ride-hailing, food delivery, and mobile payments services, announced that its ride-hailing unit is projected to reach pre-Covid levels by the end of the year. In its second-quarter earnings release, Grab reported that its mobility gross merchandise value (GMV) for the quarter increased by 28% to $1.32 billion compared to the same period a year ago. The company revealed that its mobility GMV has now rebounded to 85% of pre-Covid levels.
The company’s Chief Operating Officer (COO), Alex Hungate, noted that international traveler demand is gradually recovering, with airport rides rising by 64% year-on-year, reaching 77% of pre-Covid levels. Additionally, domestic demand has normalized across various markets, with mobility GMV now at 85% of pre-Covid levels. Several core markets, including Malaysia, Singapore, and Thailand, have either reached or surpassed these levels.
The pandemic significantly impacted Grab’s ride-hailing business, causing a decline that was temporarily offset by its delivery unit. However, the company’s recovery began after the lifting of COVID-19 restrictions in Singapore, and it resumed its car-pooling service, GrabShare, earlier in 2023. The company also mentioned that driver supply is at 84% of pre-Covid levels, and efforts to improve this aspect will continue.
Grab’s recent financial results were positive, with revenue for the second quarter reaching $567 million, a 77% increase from the previous year. The net loss also improved by 75.3% to $135 million compared to the same period in 2022. As part of cost-cutting measures, Grab reduced customer incentives and discretionary spending and conducted mass layoffs.
Despite its history of losses, Grab has pushed forward its breakeven target to the third quarter, aiming for profitability sooner than previously anticipated. The company expects its revenue for 2023 to range between $2.2 billion and $2.3 billion. Grab’s U.S.-listed shares saw a significant increase of 10.78% following the announcement of its positive earnings results and revised breakeven timeline.