Grab, a food delivery and ride-hailing giant from Singapore has recently shared its third-quarter earnings.
For the first time since 2012, the firm has reported that its losses have reportedly narrowed. As per the officials, they have experienced a dip in the deliveries segment.
Grab’s Quarterly Earnings
For the third quarter, the company has reported that its adjusted EBITDA loss has experienced a huge recovery compared to the same quarter in 2021.
The firm has announced that in the same quarter of the year 2021, its EBITDA loss was $212 million. As the loss has improved, it is now down to $161 million in the same quarter of 2022.
Grab is known for offering a variety of services to application users based in Singapore. The company is popularly known for offering mobile payments, grocery delivery, package delivery, food delivery, and ride-hailing.
The mobile payment services offered by Grab are through the application known as GrabPay.
Delivery Business is on the Rise
The executives at Grab have announced that they have already met their delivery target for the year 2022. Three quarters into the year 2022, the company has already met its delivery target.
The company has attributed the rise in its deliveries to two major factors. The first factor is the optimization of the incentive program launched for restaurants and delivery riders.
The second factor is the contribution of Jaya Grocer. It is a major grocery chain based in Malaysia that is now part of Grab.
It was in January of 2022 when Grab reportedly acquired a majority stake in Jaya Grocer. It is known for being a mass-premium supermarket chain that has been operating in Malaysia since 2007.
Stock Price Performance of Grab
In the latest trading session, the trading price of Grab surged noticeably. The latest trading session has shown that the company’s shares have surged 0.64%.
At the time of writing, Grab’s share price is $3.15 per share. It managed to outperform the major stock indexes who were experiencing losses in their latest trading sessions.
The NASDAQ Composite experienced a 1.54% dip while the S&P 500 index experienced a 0.83% dip.
Grab made its public debut back in December 2021. The company reportedly went with a SPAC merger, which means it merged with a company that is already publicly listed.
From the start of the year until now, the share prices for Grab have plummeted by 56%.
Grab officials also upgraded the full-year forecast in light of the strong performance.
Previously, the company had set the revenue expectations to $1.30 billion but they have been upgraded to $1.35 billion.
As for the losses, the company previously expected $380 million in the entire year but has reduced them to $315 million.