By Zaheer Kachwala
(Reuters) -Grab Holdings beat analysts’ expectations for third-quarter revenue on Monday, supported by robust consumer spending on ride-hailing and food-delivery services as its platform expansion draws in additional users.
Grab’s push to evolve into a “superapp”, integrating food and grocery delivery, ride-hailing and financial services, has gained strong traction among consumers looking for a one-stop-shop for their daily mobility and lifestyle needs as they navigate an uncertain economy shaped by tariffs.
Grab has also focused on more affordable ride-hailing and food-delivery options to attract cost-conscious consumers in an attempt to give itself a buffer against spending downturns.
CFO 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 or these affordable products, and also they’re spending more frequent at the same time as we are able to upsell them,” Oey said.
As competition intensifies across Southeast Asia’s service sector, Grab is looking to leverage its ride-hailing platform to expand into the autonomous robotaxis market, a segment analysts expect to see strong growth in the coming years.
The company also raised the lower end of its annual revenue forecast to $3.38 billion from $3.33 billion, while leaving the upper end unchanged at $3.40 billion.
Grab reported revenue of $873 million during the period, compared with analysts’ average estimate of $872.9 million, according to data compiled by LSEG.
The company also raised its annual adjusted earnings before interest, taxes, depreciation and amortization forecast to between $490 million and $500 million, from its previous forecast of between $460 million and $480 million.
Third-quarter revenue for Grab’s deliveries segment stood at $465 million, compared with estimates of $470 million.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Shilpi Majumdar and Sherry Jacob-Phillips)
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