Grab's Revenue Plunges 44% in Q4 2021: Here's Why

Grab reported a decline in performance in Q4 2021. During this period, the Singaporean decacorn's revenue reached US$122 million, a 44% year-on-year (YoY) plunge.

This revenue decrease was due to Grab's prior investment in increasing the number of drivers to support a strong recovery in mobility demand.

Grab's revenue was most significantly generated from mobility services, such as Grab Bike and Grab Car, reaching US$105 million. This figure also decreased by 27% YoY. Revenue for corporate and new initiatives in the last quarter of last year fell by 39% YoY to US$16 million.

Next, delivery service revenue amounted to US$1 million, plummeting 98% YoY. Meanwhile, financial services revenue saw slower growth, decreasing from US$3 million YoY to US$1 million in Q4 2021.

Grab's revenue decline in Q4 of last year resulted in an increased loss of US$1.1 billion. This includes US$311 million in non-cash interest expense related to convertible preferred shares.

Cumulatively, Grab's revenue increased by 44% YoY to US$675 million throughout 2021. This was supported by strong growth in the delivery and financial services segments.

However, Grab's losses for last year reached US$3.6 billion. This loss includes US$1.6 billion in non-cash interest expense related to convertible preferred shares and warrants that were settled after Grab's public listing. Additionally, US$353 million was related to one-time public listing costs.

Grab's gross merchandise value (GMV) increased by 29% YoY to US$16.1 billion throughout last year. Monthly transacting users decreased by 2% to 24.1 million. Meanwhile, GMV per monthly transacting user increased by 31% to US$666.