Singapore-based mobility and delivery
brand Grab reports Q1 2022 gross merchandise volume and total payment volume
outperformed its guidance for deliveries, mobility and financial services.
Gross merchandise volume (GMV)
was $4.8 million, up 32% year-over-year.
Revenue in the first quarter was
$228 million, a 6% increase compared to the same period in 2021, and loss in
the quarter also improved by 35% year-over-year to $435 million.
“Our first quarter
results are a testament to the resilience of Southeast Asia’s economy as we
move past the worst of the pandemic restrictions. We are optimistic that our
business will continue to strengthen as more countries pivot to living with COVID-19,”
says Anthony Tan, co-founder and group CEO of Grab.
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“In the quarter, we
delivered strong top-line growth in deliveries as we expanded our merchant
selection to give users more reasons to choose Grab. Our mobility business also
rebounded, and we expect it to gradually recover as COVID restrictions ease
further and our active driver base increases.”
Adjusted EBITDA in Q1
was negative $287 million – more than double the $111 million loss of Q1 2021.
The company says the decline is due to “higher regional costs and incentive
investments.” The Q1 adjusted EBITDA was a $17 million improvement compared to
the prior quarter, Q4 2021.
Grab says it expects to break
even on adjusted EBITDA by the first half of 2023 for its core food deliveries segment
and by the end of 2023 for its overall deliveries segment. One parts of its
growth plan is to “leverage technology, partnerships and our super app
ecosystem to grow our user base, improve efficiency and increase user
“Looking ahead, we are
focused on growing sustainably by being disciplined with our capital,
optimizing our fixed cost base and tapering our incentive spend as the market
rationalizes. We believe these actions will put us on a path to achieving
segment adjusted EBITDA breakeven for deliveries by the end of 2023,” says Peter
Oey, Grab CFO.
transacting users rose 10% year-on-year to reach 30.9 million in the first
quarter this year and average spend per user rose 19% to $155.
In its mobility service,
Grab says its active driver base increased in Q1 but is still below pre-COVID
For deliveries, Grab
says it is working to improve “the driver and user experience through tech and
product enhancements and strengthening our moat by offering users a wide
selection of merchants to meet their needs.” The company also plans to expand
its deliveries segment and its “buy-now-pay-later” products into more markets in
the next year.
Last week Grab announced
three new sustainability goals: to double the number of marginalized
individuals earning income on its platform by 2025, to expand the proportion of
women in its leadership ranks by 40% by 2030 and to achieve carbon neutrality
within its ecosystem by 2040.