Singapore-based Grab, a ride-hailing-turned-e-commerce group that was once the most valuable startup in Southeast Asia, trailed Indonesian rival GoTo in the public finance market.
The economic downturn comes as Grab struggles to hold its own against rivals, especially in its populous home market.
Still unprofitable after their recent stock market debuts, both companies are struggling to convince investors of their money-making potential in current economic conditions, Bloomberg News famous.
Their market value has fallen since the IPO. GoTo’s market cap fell from $32 billion when it went public in April 2022 to $26 billion, while Grab’s market value fell to $13 billion from about $35 billion when it went public in December 2021.
Fierce competition
Grab and GoTo have been engaged in a costly battle for dominance over the past few years. Grab still counts the city-state of Singapore as its biggest market, even as it seeks to expand in countries including Indonesia, Southeast Asia’s largest economy.
GoTo, formed from the merger of ride-hailing company Gojek and online retail platform Tokopedia, enjoys leadership in its home country of more than 270 million people whose mobile-savvy consumers are shopping on Tokopedia and ordering rides and food through Gojek.
Market value is under pressure
In terms of share prices, GoTo is down about 15% from its first-day closing price in Jakarta, while Grab is down more than 72%.
GoTo has a firm grip on the key Indonesian market, while Grab has made inroads in food delivery. According to Momentum Works, a Singapore-based tech enterprise and business intelligence firm, Grab had a 49 percent share of Indonesia’s food delivery market last year, compared with 43 percent for GoTo.
Grab’s second-quarter earnings beat expectations
Still, Grab appears to have upside potential. The company, which released its second-quarter earnings on Aug. 25, reported a better-than-expected 79% increase in revenue, helped by “resilient demand from consumers” who continued to hail rides and order food despite rising inflation.
Grab’s net loss narrowed to about $547 million, while revenue climbed to $321 million in the second quarter. Full-year revenue is expected to be between $1.25 billion and $1.3 billion.
GoTo will release its second-quarter financial results on August 30.
Singapore-based Grab, a ride-hailing-turned-e-commerce group that was once the most valuable startup in Southeast Asia, trailed Indonesian rival GoTo in the public finance market. The economic downturn comes as Grab struggles to hold its own against rivals, especially in its populous home market. Bloomberg News noted that the two companies remain unprofitable after their recent stock market debuts, and both are struggling to convince investors of their money-making potential in current economic conditions. Their market value has fallen since the IPO. GoTo’s market cap fell from $32 billion when it went public in April 2022 to $26 billion, while Grab’s drop even…
Singapore-based Grab, a ride-hailing-turned-e-commerce group that was once the most valuable startup in Southeast Asia, trailed Indonesian rival GoTo in the public finance market.
The economic downturn comes as Grab struggles to hold its own against rivals, especially in its populous home market.
Still unprofitable after their recent stock market debuts, both companies are struggling to convince investors of their money-making potential in current economic conditions, Bloomberg News famous.
Their market value has fallen since the IPO. GoTo’s market cap fell from $32 billion when it went public in April 2022 to $26 billion, while Grab’s market value fell to $13 billion from about $35 billion when it went public in December 2021.
Fierce competition
Grab and GoTo have been engaged in a costly battle for dominance over the past few years. Grab still counts the city-state of Singapore as its biggest market, even as it seeks to expand in countries including Indonesia, Southeast Asia’s largest economy.
GoTo, formed from the merger of ride-hailing company Gojek and online retail platform Tokopedia, enjoys leadership in its home country of more than 270 million people whose mobile-savvy consumers are shopping on Tokopedia and ordering rides and food through Gojek.
Market value is under pressure
In terms of share prices, GoTo is down about 15% from its first-day closing price in Jakarta, while Grab is down more than 72%.
GoTo has a firm grip on the key Indonesian market, while Grab has made inroads in food delivery. According to Momentum Works, a Singapore-based tech enterprise and business intelligence firm, Grab had a 49 percent share of Indonesia’s food delivery market last year, compared with 43 percent for GoTo.
Grab’s second-quarter earnings beat expectations
Still, Grab appears to have upside potential. The company, which released its second-quarter earnings on Aug. 25, reported a better-than-expected 79% increase in revenue, helped by “resilient demand from consumers” who continued to hail rides and order food despite rising inflation.
Grab’s net loss narrowed to about $547 million, while revenue climbed to $321 million in the second quarter. Full-year revenue is expected to be between $1.25 billion and $1.3 billion.
GoTo will release its second-quarter financial results on August 30.
