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ALEXANDRIA, Va.—Grab, the Singapore-based food delivery company, cut its overall grocery volume for the year, Reuters reported. The company said they were responsible for a stronger dollar and declining demand for food delivery services.
“What we’re seeing is done with some of the growth trends and consumer behavior,” Grab CEO Anthony Tan told analysts. “Customers want to save money … they may show a preference for ordering groceries to cook for themselves.” Grab also offers grocery delivery.
Grab operates in 480 cities across eight countries in Southeast Asia. The company lifted the lower end of its revenue forecast for the year, saying it was “laser-focused” on profitability as driving demand rose sharply in Southeast Asia. Tan expects the Grab rideshare segment to increase once economies reopen.
The company plans to launch new products to attract “profitable loyal customers” and reduce the cost of serving users.
To reduce company costs, Grab will shed unprofitable businesses such as its “dark warehouses” in some countries and reduce employment to attract riders and users.
The company forecast revenue of US$1.25 billion to US$1.3 billion for the year, compared with US$1.2 billion and US$1.3 billion previously. It forecasts overall merchandise volume growth of between 21 percent and 25 percent for the year. On a constant currency basis, gross merchandise volume is expected to grow between 25% and 29%, compared to the prior estimate of 30% and 35%.
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