Grab says its revenue is nearly back to pre-pandemic levels

Singapore-based ride-hailing giant Grab said its group revenues for the third quarter have climbed to over 95% of its pre-Covid-19 numbers despite the continuing lockdown measures in several Southeast Asian cities, said Grab president Ming Maa.

Photo credit: Grab

In a newsletter update on October 22, a copy of which was seen by Tech in Asia, the top exec said that its food delivery operations contributed to the bulk of its recovery. “Our food business now generates more than 50% of our revenues, reflecting increased consumer demand for food delivery in the new normal,” Maa added.

With this, he said that Grab will be prioritizing the expansion of its financial services and merchant services through the rest of 2020 and beyond.

See Also: Traveloka is nearly profitable despite Covid-19

The startup is now valued at more than US$15 billion, a source familiar with the matter told Reuters. This is after Grab secured US$200 million in new capital last month from South Korean private equity firm Stic Investments.

In May this year, Grab said that its overall revenues had been dragged down by its ride-hailing business as movement restrictions were set in place to curb the spread of Covid-19. Grab co-founder Hooi Ling Tan shared that the company was planning for “a potentially long winter” ahead as it looked to cut down on spending.

In June, the company laid off 360 employees, or roughly 5% of its total workforce, after reviewing its spending and implementing pay cuts for its senior management.

Another Southeast Asian startup charting a path to recovery is Indonesian travel unicorn Traveloka. Speaking onstage at this year’s Tech in Asia conference, company president Henry Hendrawan confirmed that the company is set to break even by the end of 2020 or early 2021 and will be profitable soon.