Grab Vietnam Posts Huge Loss despite Hefty Revenue

Tuan Minh

19:04 28/10/2017

BizLIVE - Both Grab and Uber are reporting losses as they spend big on advertisements and promotions.

Grab Vietnam Posts Huge Loss despite Hefty Revenue

Grab is spending big on promotions to lure users. Photo: Quynh Trang/Zing

Ride-hailing app Grab has incurred an accumulated loss of 938.26 billion dong ($41.33 million) since it started operation in Vietnam in February 2014, a tax official has said.
The Malaysia-based app had combined revenue of 1.76 trillion dong ($77.3 million) from 2014 to 2016, Dang Duy Khanh, deputy head of the Inspection Department under the General Department of Taxation, told reporters on Friday.
The company, which has a registered capital of 20 billion dong ($881,000), has paid a total of 12.5 billion dong (550,000) in taxes, the official added.
Meanwhile, Uber, Grab’s biggest rival in the Southeast Asian country, reported revenues of 2.71 trillion dong ($119.3 million) from 2014 to June 2017, Khanh said. The Dutch firm has paid 76.88 billion dong ($3.38 million) in taxes.
In addition, Uber has to pay an additional 67 billion dong ($2.95 million) in taxes due to the misinterpretation of a tax regulation.
The tax authority did not provide information on Uber’s profitability, but said that both Grab and Uber are reporting losses as they spend big on advertisements and promotions to attract users, according to the tax authority.
Traditional taxi operators in Vietnam are decrying unfair competition from the two foreign ride-hailing apps, and are facing big losses and massive layoffs.

TUAN MINH

Từ khóa: Vietnam, Grab, Uber

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