Singapore-based Grab Says Food-Delivery Business Is Softening

It believes its customers may prefer to order groceries and cook at home.

Singapore-based food delivery company Grab has revised its gross merchandise volume (GMV) outlook for the year, blaming the strong US dollar and a drop in demand for food delivery services. However, the company has raised the lower end of its revenue forecast for the year and expects the rideshare portion of Grab to increase as economies reopen. To increase profitability, Grab plans to launch new products, cut back on inventories and promotions, drop unprofitable businesses, and decrease hiring. The company forecasts revenue between $1.25 billion and $1.3 billion for the year, with GMV growth between 21% and 25%. GMV is expected to grow between 25% and 29% on a constant currency basis.

The original article is “Singapore-based Grab Says Food-Delivery Business Is Softening.”