Grab’s profitability path has a GMV roadblock

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“Today, Grab only sells to 1 in 20 people [in Southeast Asia] every month. So this means there’s still plenty of room for us to grow,” Anthony Tan said in the firm’s first-quarter earnings call last month. If there ever was a rallying cry from the CEO of the US$13.4 billion company, this was it.

Despite more than doubling revenue in Q1 and narrowing adjusted EBITDA losses for the fifth consecutive quarter, the ride-hailing and food delivery giant has no intention of hitting the brakes.

But Grab’s stagnating gross merchandise value (GMV) has thrown a spanner in the works.

It will have to keep growing GMV in its mobility segment and reverse recent declines in its deliveries unit to achieve its target of breaking even by Q4 this year. This is not an easy task, especially as the firm has reduced spending on incentives.

Today’s featured piece makes sense of Grab’s current predicament. My colleague Simon dissects how and why the super app needs to pull off the delicate balancing act of revitalizing its GMV to feed its bottom line while also minimizing expenses to maintain its profit margins.

Today we look at:

• Grab’s GMV-sized problem
• Shopee combating the trade of illegal drugs and food on its platform in Indonesia
• Other newsy highlights such as AI’s potentially disruptive power as elections near, crypto’s funding collapse, and Love Bonito’s latest financials

— Shravanth

P.S.: If you’re an entrepreneur looking for funding, fill out this form to get your company featured on our list of fundraising startups.

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Race against the clock

Image credit: Timmy Loen

For all of Grab’s post-earnings woes – its shares were down by 10% in the trading session that followed – the company has managed to post a strong performance in its share price.

Shopee has an illegal drug issue

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