Grab says delivery business softening, still ‘laser-focused’ on profitability

(Corrects typographical error in paragraph 9)

(Reuters) -Singapore’s Seize Holdings Ltd on Thursday slashed its gross merchandise quantity (GMV) outlook for the 12 months, blaming a powerful greenback and cooling demand for meals supply companies as customers return to eating outside.

U.S.-listed shares of Seize fell 16% in early buying and selling.

Seize and its friends recorded surging revenues through the pandemic as customers caught at house relied on ordering meals. However as restrictions ease in most components of Southeast Asia, customers are heading out to seize their meals.

“What we’re seeing with a number of the development tendencies and shopper habits is eating out has taken place,” Chief Government Officer Anthony Tan informed analysts.

“Clients need to get monetary savings… they might truly present a desire to order groceries to cook dinner for themselves.” Tan added, indicating Seize might stand to profit from its grocery supply enterprise.

The corporate, which operates in 480 cities in eight international locations in Southeast Asia, lifted the decrease finish of its income forecast for the 12 months and mentioned it was “laser-focused” on profitability as demand for rideshare throughout Southeast Asia peaks.

Tan mentioned the corporate now plans to concentrate on launching new merchandise that can assist Seize concentrate on “worthwhile loyal clients” and decrease the price of serving customers.

He additionally expects the rideshare enterprise to rebound as economies reopen.

To chop prices, Seize mentioned it might roll again incentives and promotions to lure drivers and customers, exit unprofitable companies resembling its “darkish shops” in some international locations, and sluggish hiring.

The corporate forecast income between $1.25 billion and $1.3 billion for the 12 months, in contrast with its prior vary of $1.2 billion and $1.3 billion.

Seize forecast GMV development between 21% and 25% for the 12 months. On a continuing foreign money foundation, GMV is anticipated to develop between 25% and 29%, in contrast with its prior vary of 30% and 35%.

(Reporting by Nivedita Balu in Bengaluru; Modifying by Krishna Chandra Eluri)