Grab’s tough balancing act: grow stagnating GMV while keeping expenses in check

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Hello readers,

I recently found out that one of my colleagues uses Grab to order food at least once a day. It’s not surprising then that he subscribes to GrabUnlimited, the super app’s loyalty program.

For a monthly fee, GrabUnlimited provides discounts on delivery charges and some menu items as well as offers various bonus promotions.

I prefer eating out when possible, but I often use Grab to get a ride when I’m traveling with my dog Natto.

My point is that love it or loathe it, Grab is a big part of many people’s lives. And each of us, in a small way, contributes to its gross merchandise value (GMV) figures, which the company reports quarterly.

This week’s Big Story takes a closer look at Grab’s Q1 numbers for 2023 and considers why investors still want to see GMV growth despite the company’s improving revenue and profitability.

As pervasive as Grab may seem, only one in 20 Southeast Asians use its services every month. The company needs to work on increasing this figure to deliver the profits that investors seek.

— Simon

THE BIG STORY

Grab’s GMV is stagnant. It needs to reverse that to break even

Image credit: Timmy Loen

While EBITDA losses narrowed for a fifth consecutive quarter, the market was still skeptical of the company’s results.

3 Trends to keep an eye on

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2 Eye-popping facts

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