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A Grab Food delivery man.
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rebounded from a recession on Friday after the Singapore-based ride-hailing and food delivery company reported a bigger fourth-quarter loss and sales slumped.
Grab (ticker: GRAB) rose 19% to $3.90 on Friday. The stock fell more than 37% on Thursday after reporting results.
Grab’s loss in the fourth quarter was $1.1 billion, up from a loss of $635 million a year earlier. Revenue fell 44% to $122 million from $219 million.
Grab invested heavily in driver incentives during the quarter and will continue to do so in 2022, Chief Financial Officer Peter Oey told The Wall Street Journal in an interview.
Oey said Grab will continue to offer cash incentives to drivers as it seeks to entice them after losing drivers during the Covid-19 pandemic.
“I think the end of the first half [of 2022] is important to us,” Oey told the Journal. “It will take one to two quarters to achieve this balance between drivers and users, between supply and demand.”
Grab is also investing more in customer incentives, Oey said.
Grab went public on December 2, 2021, in a $40 billion merger with a special purpose acquisition company. The stock opened that day at $13.06.
Write to Joe Woelfel at [email protected]
