Grab posts Q2 profit of $323 million after one-time gain, raises 2026 forecasts on robust demand
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Grab has banked on features such as order bundling and a budget-friendly service tier to drive demand in its core ride-hailing and delivery businesses.
PHOTO: ST FILE
SINGAPORE – Grab Holdings raised its annual earnings and sales forecasts, a sign that robust demand from South-east Asian commuters is helping to absorb the impact of higher fuel prices stemming from the Iran war.
Net profit for the second quarter ended June jumped 620 per cent to US$252 million (S$323 million) from US$35 million a year earlier, after a US$307 million one-time gain from consolidating its Indonesian digital bank, Superbank.
Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 54 per cent to US$168 million, while net revenue advanced 22 per cent to US$997 million.
The ride-hailing and delivery company predicted US$720 million to US$740 million in adjusted EBITDA for 2026, while sales will be as much as US$4.15 billion.
Higher fuel prices have pushed up ride and delivery fares in South-east Asia, weighing on demand at Singapore-based Grab and its peers. The platform companies can cushion the impact by offering incentives to riders and consumers, though that risks putting pressure on their already thin profit margins.
At the same time, competition in the cut-throat market is not easing. Rivals such as GoTo Group and new entrants like Green and Smart Mobility are vying with Grab in populous markets like Indonesia and Vietnam. Uber Technologies, one of Grab’s backers, could also be a looming threat – its planned acquisition of Delivery Hero opens up a path for Uber Eats to re-enter South-east Asia.
Grab, meanwhile, is attempting to strengthen its market position by integrating meal-delivery firm Foodpanda’s Taiwan operations, acquired from Delivery Hero earlier in 2026.
Grab has also rolled out features such as order bundling and a budget-friendly tier called “Saver”, targeting cost-conscious customers grappling with higher fuel prices, while curtailing a once-frenetic pace of expansion. It is also continuing to push into fintech services to leverage its user base.
Gross merchandise value, or the total dollar value of transactions, across Grab’s mobility and delivery businesses climbed 21 per cent to US$6.5 billion in the second quarter, driven by growth in the number of active users.
Grab, which serves 54 million users in more than 900 cities, said it invested US$706 million in incentives for customers and drivers in the quarter, including more than US$7 million to support driver earnings amid the fuel crisis.
Shares of the Nasdaq-listed company have dropped about 26 per cent in 2026 and are down more than 50 per cent since the company’s stock market debut in late 2021. The company said its board authorised an additional US$750 million in share repurchases.
Indonesia reducing the maximum scooter ride commission that platform companies can charge to 8 per cent from roughly 20 per cent is another challenge for Grab. The company has said it plans to adjust its Indonesian business after Jakarta’s surprise edict, though Indonesia’s two-wheeler riders account for less than 6 per cent of the business volume for its mobility operations. BLOOMBERG, REUTERS