Grab, the largest of Southeast Asia’s ride-hailing and delivery firms, is trying to prove its cost-cutting drive is yielding results. The Singapore-based company is focused on profits after years of spending to grow its market share and fend off competition. Yet, the firm also needs to show it can maintain healthy balance between profits and growth even as tough competition from rivals including GoTo Group weighs on its ride-share and food delivery margins.
Grab Holdings Ltd. shares jumped as much as 15% in late US trading after the Southeast Asia ride-hailing and delivery leader boosted its earnings forecast for the year, helped by cost cuts to tackle intense competition.
The company predicted US$308 million ($411 million) to US$313 million in adjusted full-year earnings earnings before interest, taxes, depreciation and amortisation, more than the as much as US$270 million it had forecast earlier. Third-quarter earnings on that basis were US$90 million, exceeding the US$66.2 million analysts predicted, and Grab also posted its second net income ever.
