Food crisis may cook up long-tail risks on Grab deliveries: Maybank

Food prices went up 19% since the start of 2022.

With the rising food prices along with food and agricultural crises in the Southeast Asia region, Grab delivery services could see incremental risks to demand, analyst, Maybank Research said.

In its report, Maybank said the food prices in Southeast Asia went up 19% since the year began. There were also food and agricultural woes on the back of disruption of fertiliser supply, Maybank said. 

“As delivery services are discretionary consumption, we believe this may be more impacted by rising prices of food items,” read the report.

On the lighter side, Maybank said reopening of borders will be a key driver of gross merchandise value and revenue recovery for Grab.  

Meanwhile, resumption of GrabShare will also “soften fuel inflation concerns” and raise profitability despite commission rates increase and discounts were tapered.

READ MORE: Grab improves net loss by 35% YoY in Q1