By Nivedita Balu

(Reuters) – Shares of Grab Holdings Ltd fell 37% Thursday, after Southeast Asia’s number one ride-hailing and food delivery company. Promotional offers and better driver incentives caused a larger quarterly loss for Grab Holdings Ltd, a ride-hailing company and food delivery service.

Grab, a Singaporean company that operates ride-sharing services in Singapore, stated it has invested heavily to increase incentives for drivers.

Grab lost 44% of its revenue to $122 million during the fourth quarter. This is far below what analysts had expected to see at $167million. The loss increased to $1.1billion, which includes expenses related Grab’s listing. This compares to $635m a year ago.

Grab’s shares fell to their lowest point ever as it reported its first quarterly earnings. Their value has fallen nearly three-quarters since they were first listed.

Peter Oey (CFO) stated that drivers are in high demand and that they were still in need of supplies.

Grab’s Grab Delivery Unit, which provides food delivery services to countries such as Singapore and Malaysia, saw revenue plummet 98%. The company invested money in incentives and more customers eating out to maintain its market leadership position.

The quarter saw a 27% decline in revenue from its mobility unit. This account accounted for 86% overall sales.

SoftBank Group’s Grab, which was originally launched in Malaysia as a taxi app, has since been rebranded to offer ride-hailing, grocery and mobile banking in Southeast Asia.

This company was formed by Altimeter Growth Corp, a blank check firm, and became public in December. It is now facing increasing competition from “super apps”, such as Gojek, an Indonesian app.