On Monday, November 11, Singapore’s Grab Holdings GRAB.O increased its revenue projection for fiscal 2024. The Southeast Asian tech company expects strong growth in its ride-hailing and food delivery services over the hectic holiday season. In extended trading, the company’s US-listed shares increased by almost 10%.
As consumers’ discretionary spending budgets rise in an indication of economic recovery, Grab’s core food delivery business has been rebounding from a post-pandemic decline in demand.
“We remain bullish on the long-term growth outlook of Southeast Asia, and are firing on all cylinders to capture the strong user demand trends,” Anthony Tan, CEO of Grab, stated.
The business anticipates revenue between US$2.76 billion and US$2.78 billion, up from its previous estimate of between US$2.70 billion and US$2.75 billion.
In an effort to attract budget-conscious clients, Grab has begun introducing less expensive options for its ride-hailing services. However, in an effort to increase profits, the company has also been attempting to market its luxury products.
According to CFO Peter Oey, the margins for the company’s more expensive rides are 1.2 times greater than those for its regular rides, as reported by Reuters.
disclosed third-quarter revenue of US$716 million, surpassing Visible Alpha’s projected US$700.8 million.
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