Grab Achieves Profit on Adjusted Basis

Grab has hit a significant financial milestone. For the first time since its inception in 2012, Grab has reported a profit on an adjusted basis, a promising development for investors concerned about the company’s profitability. In the quarter ending September, Grab posted an adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) of $29 million, surpassing analysts’ expectations of $9.5 million. This achievement marks a pivotal moment for the Singapore-based company, which had been grappling with steep losses due to aggressive expansion and fierce competition from rivals like GoTo Group and Sea Ltd.

Despite facing a challenging macroeconomic environment, with customers curtailing spending amid high inflation and interest rates, Grab’s revenue surged by 61% to $615 million. However, this growth rate has slowed compared to previous years, reflecting a maturing customer base and increased cost-consciousness.

The company, which leads Southeast Asia’s ride-hailing and delivery markets, has not yet achieved net income due to continued investment in market competition.