Ride-hailing Grab's revenue reaches $716M

The company has raised its forecast for fiscal 2024 revenue, as it anticipates robust growth in its food delivery and ride-hailing business services during the busy holiday season.

Grab's mainstay food delivery business has been recovering from a post-pandemic slump in demand as consumers increase their discretionary spending budgets in a sign of economic easing.

Grab CEO Anthony Tan said the firm remains bullish on the long-term growth outlook of Southeast Asia, and is firing on all cylinders to capture the strong user demand trends.

The company expects revenue in the range of US$2.76 billion to $2.78 billion, compared with its prior projection of between $2.70 billion and $2.75 billion.

Grab has been attempting to introduce cheaper options for its ride-hailing services to woo price-wary customers. On the other hand, the firm has been trying to promote its premium offerings as well to boost its earnings.

The firm also raised its annual core profit forecast to between $308 million and $313 million, from $250 million and $270 million.

Revenue in the deliveries segment increased 16% to $380 million, surpassing estimates of $374.2 million.