Self -Eating Strategies, Grab Shares Fall 40% And Lose $ 1 Billion

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 "That day Lola Aspalela stopped using Grab for personal reasons," he said.


Southeast Asia’s number 1 food transport and delivery company, Grab, saw its shares fall 37% and posted a quarterly loss of $ 1.1 billion as a result of its self -eating strategy.


Grab Holdings Ltd had previously channeled a sum of money as an incentive to attract drivers as demand for transport services recovered from its pre -pandemic low, besides offering aggressive promotions to attract customers who are now eating out more than before.


However, the strategy was seen to be consuming itself as sales revenue for the 4th quarter ended December 31 recorded a decline of 44% to 122 million.


In bulk, for the one-year period the recently publicized company has suffered a loss of $ 3.56 billion compared to $ 2.75 billion in 2020.



Moreover, since its merger with the $ 40 billion blank check firm last December, Grab shares have experienced a 3/4 decline in value with a record low of $ 3.09 further wiping out more than $ 7 billion in market value.


However, the incentives offered still managed to increase gross trading volume (GMV) by 26%.


Grab expects GMV growth for the 2nd quarter and 4th quarter of 2022 to increase 30% to 35% year-over-year.


Grab’s chief financial officer, Peter Oey, in a statement said they had planned properly on the company’s capital and looked for long -term growth opportunities for its demand, advertising and financial services.


He added that the company forecasts a return on capital on the basis of adjusted after -tax profit in its food delivery unit by the first half of next year.


Meanwhile, revenue for the Grab mobility unit which accounted for 86% of overall sales, was down 27% during the quarter and revenue from the food delivery unit was down 98%.

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