Grab Philippines reported a total comprehensive loss of P2.91 billion in 2017, worse than the P1.56 billion comprehensive loss it incurred the previous year.
The transport network service company has not earned any profit since it started business in the Philippines.
“Revenues from 20% commission from rides are used for incentivizing drivers,” Grab Philippines Country Head Brian Cu said in a statement .
Despite its acquisition of the Southeast Asian business of rival company Uber, Cu said Grab Philippines is still in investment mode and is not expecting to make profits yet anytime soon.
“We do not expect the situation to change in the next 12 to 18 months. We are still in investment mode. We are not expecting to make money anytime sooner. But these losses are still within our budget forecast,” the company official said.
Meanwhile, Cu said Grab Philippines is planning to subsidize the fuel drivers use to pick up passengers from far areas to motivate drivers to go the distance to serve passengers.
Cu said drivers are hesitant to pick up passengers booking from a far location on concerns that they would only be wasting fuel.
“This is a new feature from a technical side that no one else can do but Grab can do,” Cu said. “The fund will come from Grab’s investment funds,” he added.