Grab reports rise in revenue on strong demand for food delivery

Grab reports rise in revenue on strong demand for food delivery
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BENGALURU (May 19): Grab Holdings Ltd, Southeast Asia's No 1 ride-hailing and food-delivery firm, on Thursday reported a 6% rise in quarterly revenue as more people ordered food online.

The company also benefited from growing demand for ride-sharing as people resumed their pre-pandemic routines.

Grab said gross merchandise volume (GMV), a measure of transaction volume, rose 32% in the first quarter to US$4.8 billion from a year earlier.

For the second quarter, Grab forecast GMV for deliveries between US$2.55 billion and US$2.65 billion, and for the mobility segment to be between US$0.95 billion and US$1 billion, betting the worst of the pandemic was over.

The company expects supply of cars on the road to stabilise in the second half of the year, and that driver incentives as a percentage of GMV to taper in that period.

Revenue for the first quarter was US$228 million, compared with US$216 million a year earlier.

Loss for the period narrowed to US$435 million from US$666 million.