Grab Holdings Limited (NASDAQ: GRAB) announced at its first Investor Day that it is targeting to achieve breakeven on a Group Adjusted EBITDA basis “by the second half of 2024, as it accelerates its path to profitability.”
For the second half of 2022, Group Adjusted EBITDA is “expected to be $(380) million, a 27% improvement compared to the first half of 2022.” With a focus on sustainable growth, Grab also announced that it “expects Group revenues to grow strongly between 45% to 55% year-on-year in 2023 on a constant currency basis.” Grab also “expects to reach breakeven for its Digibank operations by 2026.”
Anthony Tan, Chief Executive Officer and Co-Founder, Grab shared:
“We’ve been firing on all cylinders to improve our profitability trajectory and deliver growth in a sustainable manner and the new targets we’ve shared today reflect that. Ten years and ten billion journeys later, we still feel like we are barely scratching the surface in our mission to drive Southeast Asia forward. We believe there is a huge runway of growth ahead of us in serving this region and we are well positioned with our resources to capitalize on the vast opportunities.”
Tan added:
“We plan to leverage the power of the superapp ecosystem as a competitive moat to strengthen our leadership in the region, even as we continue to optimize our costs. We will drive towards becoming Southeast Asia’s largest and most efficient on-demand platform that enables local commerce and mobility.”
Alex Hungate, Chief Operating Officer, Grab remarked:
“We are driving growth through strategic initiatives like GrabUnlimited, GrabForBusiness, groceries, local partnerships, and advertising. At the same time, we are rolling out proprietary technology to enhance the efficiency of the platform for our merchants and driver partners. Finally, we plan to focus our fintech services on our ecosystem where we can serve customers uniquely well and create a platform for the launch of our digibanks.”
As noted in the update, Grab plans “to continue to build tech-driven efficiency that allows driver-partners to make shorter stops, deliver larger batches, and increase overall productivity.”
As of August 2022, Grab has “seen 19% higher batch rates, as well as an 11% increase in trips per transit hour.”
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