Grab Shrinks its GMV Forecast as the Singapore Dollar Gets Greedy
On Thursday August 25, Grab Holdings, the Singapore‑based rides‑and‑delivery juggernaut, pulled back on its gross merchandise volume (GMV) outlook for the year. The company blamed a stronger US dollar and a wave of diners ditching take‑out for fresh outdoor meals.
Stock Takes a Real‑Life 16% Dip
The shares of Grab, listed in New York, crashed 16% early in trading. The market seemed to go, “No, we’re not great at stocking… well, not in the same sense.
Why the Change? — The Great Dining Out Shift
- During lockdowns, consumers were basically glued to their couches and, of course, to their food.
- Now that the lockdown curtain’s pulled back across most of Southeast Asia, folks are heading out again—see, we’re not just buying groceries, we’re literally eating out.
CEO Anthony Tan told analysts that “people have gone back to eating outside.” He also said that many customers want to save money and are likely to order groceries instead of meals from Grab’s grocery corner—meaning the grocery arm could actually bring some swagger to the table.
Grab Goes “Profit‑First” in the Rideshare Arena
Grab is now looking at its lower‑end revenue numbers for the year and is fully focused on profitability as ridesharing pick‑ups begin to rebound across the region. The company will launch new products that will keep its most loyal and money‑wise customers happy while keeping those service hosting costs low.
Also, the chair of the us‑pinched schmaltz, says that the rideshare business itself is set to bounce back as economies reopen.
Cost‑Cutting Plays in the Pipeline
- Grab will ditch incentives and promotions that were trying to please drivers and riders to a sweet spot.
- The firm will exit unprofitable ventures like its “dark stores” in a few key markets.
- Hiring will take a gentle pause—fans of rapid expansion might need to sit on their toys for a while.
Takeaway Numbers—A Squeezed Forecast
Grab’s revenue forecast is now set between $1.25 billion ($1.7 billion) and $1.3 billion, slightly higher than before but not a big leap from its prior $1.2–$1.3 billion range.
Its GMV growth expectancy for the year is now pegged at 21–25% overall, and 25–29% when you keep the currency ripple in mind—down from the former 30–35% estimate.
In short, Grab’s outlook is now a leaner, sharper, and shy‑ish version of what it once promised. Awaiting a surge in riders, a profit‑centric approach, and a dash of grocery-tier excitement, the company is hunting for a big win in the region.
