Grab’s revenue falls by 44% in Q4 on downturn in mobility business

Singapore-based super app Grab saw its revenue plunge by over 44% to US$122 million in the fourth quarter ended December 2021. This was mainly due to a downturn in its mobility and enterprise and new initiatives segments.

The company attributed this to higher consumer incentives for mobility and deliveries, as it invested in its category share and monthly transacting users (MTU) growth. While Grab’s consumer incentives soared by 126% to US$365 million in Q4 2021, partner incentives climbed 74% to US$218 million during the same quarter from a year earlier.

Grab’s revenue is gross billings, which grew quarter-on-quarter, less driver and merchant incentives.

Grab officially listed on Nasdaq in December 2021. / Photo credit: Grab

In Q4 2021, revenue from Grab’s mobility business shrank by about 27% to US$105 million, as the company invested more in driver incentives. The segment’s gross merchandise value (GMV) also fell by 14% from a year ago to US$2.8 billion in the quarter, while its adjusted EBITDA narrowed by 32% to US$76 million in Q4.

Meanwhile, its revenue for the full year was at US$675 million – a 44% boost – while GMVs went up 29% to US$16.06 billion.

Grab’s total adjusted operating loss for the quarter widened more than 2x to US$557 million from US$234 million last year. Monthly transacting users also saw a 2% decrease.

The company’s total loss for the period was at US$1.1 billion, expanding by 73%. However, this includes a US$311 million non-cash interest expense related to Grab’s convertible shares that ceased upon its listing. For the full year, the company’s loss rose by 30% to US$3.55 billion.

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Grab posted a total GMV of US$4.5 billion in Q4 2021, representing a 26% increase.

The deliveries segment, which includes GrabMart and GrabExpress, saw its GMV jump 52% to hit US$2.4 billion in the quarter, a new record high. The segment’s EBITDA losses surged by 42x to US$84 million, from just US$2 million in the same quarter a year ago.

Meanwhile, Grab’s financial services business posted total payments volume of US$12.1 billion, growing by 37%. EBITDA losses for the segment stood at US$110 million, widening by 34% in Q4 2020.

“We expect 2022 to be another watershed year for Grab, as we get ready to launch our digibank in Singapore, and continue to pursue the massive opportunities in deliveries to outserve consumers with more options and better convenience,” said Anthony Tan, group CEO and co-founder of Grab.

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