(Reuters) – Grab Holdings forecast its annual revenue below analysts’ estimate on Wednesday, as it grapples with intense competition in food delivery and ride-hailing businesses, sending its U.S.-listed shares down more than 8% after the bell.
The company forecast its fiscal 2025 revenue to be between $3.33 billion and $3.40 billion, the midpoint of which is below analysts’ average estimate of $3.40 billion, according to data compiled by LSEG.
Grab faces competition from smaller rivals such as Foodpanda and Indonesia’s GoTo in the food delivery space. That only exacerbates worries at a time when consumer sentiment remains weak amid macroeconomic volatilities.
The company is in advanced talks to merge with GoTo as they seek to boost market share as a combined entity.
Grab reported revenue of $764 million for the fourth quarter, compared with the estimate of $757.6 million.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Shilpi Majumdar)
Comments