For Grab, cross-platform pollination is in evidence as more users use more services more often.
The company, which has its roots in ride-hailing and now operates in eight countries across Southeast Asia, reported fourth-quarter results Thursday (Feb. 23) that showed a continued snapback in mobility as economies reopen.
In supplemental materials that accompanied the earnings report, the company said that the gross merchandise value (GMV) in its mobility segment gained 62% in the fourth quarter (as measured in constant currency) to $1.1 billion. Management said on the call that demand for ride-hailing has been given a tailwind by a post-COVID recovery in travel and tourism across southeast Asia, and said rides booked to/from airports were up 244% year on year. There’s still room to grow here, according to commentary on the call, as mobility volumes are 74% of pre-COVID levels.
Total monthly transacting users, the company said, grew 14% year on year to 33.6 million. GMV per transacting grew 6% on a constant currency basis. And as demand across the platform improves, the company has seen 71% growth in drivers onboarded in the fourth quarter versus a year ago. The driver retention rate is greater than 80%, management said.
Digging a bit deeper into the numbers, and to the cross-pollination, 74% of drivers engaged in both delivery and mobility activities. Consumer engagement continues to improve, as 33% of users embraced at least three offerings in 2022, up from 27% in 2021 — and up from 17% before the pandemic. Overall, 61% of monthly transacting users had utilized two or more offerings on the Grab platform in 2022, up from 56% in 2021.
Deliveries GMV was $2.4 billion, up 5% year on year in constant currencies, driven in part by use of Grab Unlimited, the subscription offering that now accounts for 25% of GMV in the segment, per management commentary. And financial services total payments volumes stood 10% higher in the latest quarter at $3.7 billion. Lending volumes were up double digits, management said.
The cross-platform synergies for consumers and drivers alike underscore a general trend, as per CEO Anthony Tan: “Digitization is the engine of economic growth.” The total addressable markets across the regions currently served by the company span $35 billion, and management said that its services are used by 1 in 20 individuals each month.
Looking ahead, CFO Peter Oey said mobility year-over-year growth trends will continue into the current year, and this core segment should fully reach pre-COVID levels by the end of the year. Guidance for the current fiscal year sees revenues growing 54% to 60% (revenues surged 310% in the fourth quarter). Grab shares, which had rallied nearly 50% from recent lows in the fall of 2022, were down 5% in Thursday morning intraday trading.
In separate PYMNTS research, and beyond the confines of Southeast Asia, we found that the super app concept (and reality) holds appeal in other countries.
In “The Super App Shift: How Consumers Want To Save, Shop And Spend In The Connected Economy,” a collaboration with PayPal, PYMNTS surveyed over 9,000 consumers in Australia, Germany, the U.K. and the U.S. The data show that 72% of all respondents are at least “slightly” interested in a super app, and 25% are “very” or “extremely” interested.
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