Grab’s pit stops along the road to its IPO

It’s finally time: Grab is going public on Nasdaq today. It’s been a while since the Singaporean ride-hailing and delivery giant announced its merger deal with special purpose acquisition company (SPAC) Altimeter Growth, which was the largest of its kind at the time.

Here’s a look back from when Grab first booked its ride to the public market.

Delivery in driver seat for Grab’s financials

When Grab eventually announced its plans to list in the US, the company also let the public take a peek into its previously closely guarded financials.

In the company’s investor presentation, it was revealed that mobility was no longer Grab’s biggest cash cow. Since the onset of the Covid-19 pandemic, which crumpled sectors such as transportation and travel, that title has gone to its delivery business.

See Also: 6 surprises from the reveal of Grab’s jealously guarded financials

For Grab’s financial year ended December 2020, delivery – which includes GrabMart and GrabExpress – contributed almost half of the company’s revenue for the year. Meanwhile, mobility’s contribution to overall revenue plummeted from 80% in 2018 to about 31% in 2020.

According to its quarterly earnings releases, Grab’s writing a similar story for 2021.

In its results for the third quarter of the year, Grab saw its deliveries segment log a 58% year-over-year leap in revenue to hit US$49 million. On the other hand, Grab’s revenue from its mobility business saw a further 26% decline year-on-year, while its gross merchandise value (GMV) from the segment fell 30% compared to the same period in 2020.

See Also: How Grab built its lead in the food delivery war

However, Anthony Tan, Grab’s group CEO and co-founder, is keeping his hopes up for the transportation business, as movement restrictions ease and Covid-19 vaccination numbers rally.

“With recovery in sight, and the gradual reopening of economies providing tailwinds to our business, we are doubling down on investments that will help us capture a greater share of the opportunities in front of us and open up new addressable markets for Grab, such as groceries,” he shared.

A GrabFood driver / Photo credit: Grab

Forging big partnerships along the way

Grab IPO in the rearview mirror