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Tag: grab

  • Grab Cuts Maximum Take on Vietnam Rides to 32% from 40%

    Grab Cuts Maximum Take on Vietnam Rides to 32% from 40%

    Singapore-based ride-hailing operator Grab will reduce its maximum take from rides in Vietnam to 32 per cent from roughly 40 per cent, according to the country’s antimonopoly regulator.

    The ceiling reduction follows an official review prompted by driver complaints, which culminated in a two-day boycott in Ho Chi Minh City during September.

    Regulatory Pressure Drives Platform Changes

    Vietnam’s antimonopoly authority intervened after drivers lodged formal complaints regarding platform deductions from passenger fares. Across the broader region, fee adjustments and driver support measures are set to cost the Singapore-headquartered mobility group $115 million.

    The policy overhaul follows a similar intervention in Indonesia, where regulators capped ride-hailing commissions to shield gig workers from escalating platform fees. Southeast Asian antitrust authorities are increasingly targeting take rates that platforms expanded during their push toward profitability.

    The Cost of Driver Retention

    Aggressive fee reductions compress margins across Grab’s core mobility arm, altering unit economics in one of its key growth markets. For fleet operators and individual drivers, an eight percentage point cut in maximum platform deductions provides immediate relief against rising vehicle operating costs.

    Competitors across Southeast Asia face identical pressures. Platforms that extracted higher commissions to satisfy public market investors must now calculate whether absorbing the $115 million cost hit will insulate them from deeper statutory fee limits in neighbouring jurisdictions.

    Labor Friction Preceded Intervention

    Driver dissatisfaction boiled over into operational disruption in Ho Chi Minh City during September, when drivers staged a two-day boycott protesting excessive fees. That strike accelerated regulatory scrutiny, pushing authorities to review how the company structures driver compensation.

    Southeast Asian transport authorities are tracking whether the 32 per cent ceiling stabilizes driver supply before deciding on formal nationwide statutory caps.

  • Grab Lifts Full Year Guidance as Third Quarter Revenue Reaches US$1.11 Billion

    Grab Lifts Full Year Guidance as Third Quarter Revenue Reaches US$1.11 Billion

    Grab lifted its full-year earnings outlook after third-quarter revenue climbed 27 per cent to US$1.11 billion, driven by operating use across its delivery and ride-hailing networks.

    The group posted adjusted earnings before interest, taxes, depreciation and amortisation of US$237 million, extending its run of core earnings growth to 19 consecutive quarters. On a constant currency basis, revenue expanded 30 per cent compared with the same period a year ago.

    Revised targets for the full year

    Management raised full-year 2026 revenue guidance to between US$4.15 billion and US$4.2 billion, up from an earlier band of US$4.1 billion to US$4.15 billion. Expected adjusted EBITDA now sits between US$790 million and US$800 million, compared with previous projections of US$720 million to US$740 million.

    Capital returns accelerated alongside the improved forecast. The company bought back US$400 million of its own shares across September and October, helping lift its Nasdaq-listed stock to US$3.41 by the end of the week.

    SingPost relies on property sales as mail drops

    Elsewhere in regional delivery infrastructure, Singapore Post generated a net profit of S$55.9 million for the half-year ended September 30. That represented a 183.7 per cent surge, though exceptional gains from property transactions accounted for the bulk of the increase.

    SingPost booked exceptional items of S$44.4 million during the period, compared to S$13.9 million a year earlier, following the sale and leaseback of 10 Housing Board post office shophouses. Group revenue slipped 1.3 per cent to S$185.9 million as letter mail volumes suffered from ongoing structural contraction.

    Domestic post operators face relentless erosion in standard postal traffic. Group chief executive Mark Chong confirmed letter mail volumes fell roughly 40 per cent between the pandemic period and 2024, requiring ongoing consolidation across physical branch footprints.

    Ground operations face airport labour review

    Airport services provider SATS experienced operational scrutiny after Singapore’s Ministry of Manpower opened an investigation into 45 companies at Changi Airport for potential work pass infringements. The probe identified approximately 270 contractor and sub-contractor personnel whose duties may not have complied with statutory pass rules.

    SATS stated that an internal audit originally flagged the contractor discrepancies. Management redeployed full-time staff and reassigned operational duties across terminals to avoid cargo and passenger delays, allowing its share price to recover to S$3.73 after a brief dip to S$3.54.

    Operating use shifts regional platform economics

    Grab’s earnings trajectory demonstrates that South-east Asian consumer platforms can finally extract cash margins after a decade of subsidising app users and merchants. Food delivery and everyday transport have settled into entrenched utility habits across major metropolitan hubs, allowing platforms to scale gross merchandise volume without burning capital on predatory merchant incentives.

    Physical logistics networks face an entirely opposite challenge. Traditional mail handlers like SingPost must monetise legacy brick-and-mortar real estate assets to cushion the steady loss of letter traffic, even as commercial parcel competition from app-based logistics operators keeps yields thin across last-mile delivery routes.

    Both sectors must now defend their cost structures against volatile regional labour supplies. Whether dealing with ground-handling contractor audits at major airport hubs or managing driver pools across tiered cities, delivery and service margins remain tightly tethered to regulatory oversight of workforce deployment.

    US inflation numbers are due on November 10, while the futures market expects the Federal Reserve to hike rates at its December policy meeting.

  • Grab Cuts Maximum Take on Vietnam Rides to 32% from 40%

    Singapore-based ride-hailing operator Grab will reduce its maximum take from rides in Vietnam to 32 per cent from roughly 40 per cent, according to the country’s antimonopoly regulator.

    The ceiling reduction follows an official review prompted by driver complaints, which culminated in a two-day boycott in Ho Chi Minh City during September.

    Regulatory Pressure Drives Platform Changes

    Vietnam’s antimonopoly authority intervened after drivers lodged formal complaints regarding platform deductions from passenger fares. Across the broader region, fee adjustments and driver support measures are set to cost the Singapore-headquartered mobility group $115 million.

    The policy overhaul follows a similar intervention in Indonesia, where regulators capped ride-hailing commissions to shield gig workers from escalating platform fees. Southeast Asian antitrust authorities are increasingly targeting take rates that platforms expanded during their push toward profitability.

    The Cost of Driver Retention

    Aggressive fee reductions compress margins across Grab’s core mobility arm, altering unit economics in one of its key growth markets. For fleet operators and individual drivers, an eight percentage point cut in maximum platform deductions provides immediate relief against rising vehicle operating costs.

    Competitors across Southeast Asia face identical pressures. Platforms that extracted higher commissions to satisfy public market investors must now calculate whether absorbing the $115 million cost hit will insulate them from deeper statutory fee limits in neighbouring jurisdictions.

    Labor Friction Preceded Intervention

    Driver dissatisfaction boiled over into operational disruption in Ho Chi Minh City during September, when drivers staged a two-day boycott protesting excessive fees. That strike accelerated regulatory scrutiny, pushing authorities to review how the company structures driver compensation.

    Southeast Asian transport authorities are tracking whether the 32 per cent ceiling stabilizes driver supply before deciding on formal nationwide statutory caps.

  • Tada Enters Singapore Driverless Minibus Trial Starting in Early 2027

    Tada Enters Singapore Driverless Minibus Trial Starting in Early 2027

    Singapore ride-hailing company Tada Mobility has joined an autonomous minibus pilot scheduled to launch in early 2027 across the resort island of Sentosa. The initiative deploys driverless vehicles engineered by Chinese developer WeRide, matching moves by regional rival Grab into commercial autonomous services.

    An autonomous minibus destined for the Sentosa route was displayed during a media preview in the city-state on Oct. 29. Singaporean authorities continue to lean on self-contained tourism destinations to evaluate passenger safety, booking uptake and fleet management platforms before expanding trials into busier residential estates.

    The upcoming pilot brings autonomous public transport directly into Tada’s app ecosystem as leisure passengers navigate the island’s attractions. By introducing driverless shuttles to one of the country’s most frequented leisure corridors, the partnership tests whether holidaymakers will embrace automated mass transit for their daily transfers.

    Hardware and Route Rollout

    Vehicles built by China-based WeRide will operate on designated routes across the island resort, where tourist footfall provides dense, predictable transport demand. The platform previewed its autonomous minibus in Singapore on Oct. 29 ahead of route mapping and system certification.

    Tada plans to integrate booking options into its mobility ecosystem to study how leisure travellers interact with driverless public transport. Sentosa already acts as a test ground for private shuttle lines, monorail links and cable cars, giving operators a closed network to run trials without mixing directly into dense urban city traffic.

    The Race Against Regional Competitors

    Grab has pursued its own autonomous vehicle partnerships across Southeast Asia, testing self-driving technology alongside transport research institutes and automotive suppliers. By adding WeRide hardware, Tada avoids the heavy capital expenditure of building proprietary self-driving stacks, relying instead on proven Chinese vehicle platforms.

    For operators, the risk sits in fleet unit economics and battery charging logistics in tropical weather conditions. Driverless shuttles eliminate driver commissions, which form the primary cost line in private-hire operations, but they substitute labour costs with upfront vehicle financing, sensor maintenance and remote tele-operation safety staff.

    Regulatory Steps Across Singapore

    Singapore has tested autonomous buses and road-sweepers over the past decade under regulatory sandbox frameworks. Authorities require physical safety drivers or certified remote monitoring systems during all public demonstration phases.

    WeRide secured Singapore road-testing permits after testing its robotaxi and mini-bus variants on Chinese city streets. The Sentosa pilot represents its most visible commercial show for consumer-facing transport in the city-state.

    Next Steps for the Pilot

    Project engineers are completing route surveys and sensor calibration across Sentosa’s arterial roads ahead of the launch window. The passenger trial will measure route turnaround times, booking frequency and operational uptime across early 2027.

  • Singapore Needs Capital Injections Beyond $6.5 Billion EQDP, SGX Chairman Says

    Singapore Needs Capital Injections Beyond $6.5 Billion EQDP, SGX Chairman Says

    Singapore Exchange chairman Koh Boon Hwee said the domestic stock market lacks flow and liquidity, leaving local investors unwilling to take risks on home-grown shares.

    Speaking on the sidelines of the Forbes Global CEO Conference on Oct 8, Koh noted that further capital injections will be needed to sustain demand, even as the government allocates $6.5 billion through the Equity Market Development Programme. However, he warned that state injections are not a natural, lasting flow like pension-backed markets in the US.

    Koh pointed out that younger Singapore investors have an appetite for risk when buying volatile overseas stocks like Tesla and loss-making SpaceX, but local initial public offerings struggle for traction after listing.

    The Exit Route Problem For Growth Firms

    Early-stage venture funding finds solid support in Singapore. Even so, early backers need domestic public markets to absorb later-stage equity. Thin local trading volume forces founders abroad to provide exits for their investors.

    Regional technology leaders repeatedly bypass the local exchange. Shopee parent Sea listed on the New York Stock Exchange in 2017. Ride-hailing group Grab completed a Nasdaq debut in 2021 through a blank-check combination. In October, Singapore-headquartered data centre developer DayOne filed for a Nasdaq initial public offering, continuing the flow of domestic tech assets to the United States.

    Pension Flow Versus Injections

    State-backed interventions do not generate the structural momentum of institutional retirement pools. Equities in the United States draw on multiple independent pension systems. These funds constantly deploy fresh capital across public listings, private equity, and venture funds.

    The 6.5 billion Singapore dollar injection under the EQDP commits capital without creating an automatic mechanism for ongoing demand. Koh noted that the state fund is invested rather than spent. Standalone allocations leave unresolved questions about long-term reinvestment.

    “Our challenge right now is to create something that is circular and sustainable,” said Koh.

    Supply Chain Concentration Risks

    Capital concentration in Singapore tilts heavily toward established lenders, industrial landlords, and real estate investment trusts. These blue-chip counters trade steadily. Their sheer scale makes rapid compound expansion difficult to maintain over decades.

    Backing younger firms offers a route to build consumer-facing companies with proprietary brand equity rather than component suppliers. Tiered supply chains leave component makers vulnerable to sharp order swings. A 5 per cent order cut from a consumer brand can trigger a 15 per cent revenue decline down the manufacturing chain.

    Domestic Valuation Gaps

    A wide gap between private seed financing and public market liquidity leaves founders with few domestic exit options. If the local exchange cannot provide secondary buyers for high-growth enterprises, early venture capital remains locked abroad once portfolio companies exit in New York or Hong Kong.

    The Monetary Authority of Singapore and SGX have reviewed measures to encourage regional listings, while market participants watch DayOne’s pending Nasdaq filing for final pricing terms.

  • StarHub and Keppel Open Talks over M1 to Shrink Singapore Telco Market

    StarHub and Keppel Open Talks over M1 to Shrink Singapore Telco Market

    StarHub and Keppel confirmed on Sept 23 that they are in active discussions over a potential transaction involving mobile network operator M1 in Singapore. If completed, the deal will reduce the city-state’s mobile network operators from four to three, subject to approval from the Infocomm Media Development Authority.

    Keppel holds a majority stake in M1 and stated in bourse filings that consolidation is necessary for Singapore’s mobile sector. Shares in StarHub climbed to a peak of 1.15 Singapore dollars on Sept 24 before finishing the week at 1.12 Singapore dollars, while Keppel shares peaked at 11.45 Singapore dollars before closing at 11.30 Singapore dollars on Sept 25.

    Consolidation talks after failed Simba bid

    M1 returned to the negotiating table after an earlier 1.4 billion Singapore dollar takeover attempt by Simba Telecom collapsed in May. The telecom regulator suspended its review of that transaction after discovering Simba had used radio frequency bands outside authorised parameters to deliver mobile services.

    Simba, owned by Australian-listed Tuas, confirmed the breach on Sept 23 during an investor call. Company secretary Tony Moffatt stated that the operator used spectrum outside the conditions set by the regulator, effectively ending its pursuit of M1 and opening room for StarHub to step in.

    Market share pressure and network costs

    Singapore’s mobile market remains one of the most crowded in Southeast Asia relative to population size, putting persistent pressure on average revenue per user. Combining StarHub and M1 would consolidate subscriber bases, eliminate duplicate 5G capital expenditure, and leave Singtel and Simba as the remaining standalone mobile competitors.

    Carriers across the region face similar rationalisation pressures as high infrastructure spending collides with mature consumer adoption. The primary hurdle for any StarHub and M1 combination will rest with competition regulators, who must weigh lower industry overhead against diminished price competition for retail mobile contracts.

    Executive buying steadies Grab after Atome deal

    Tech and consumer platforms in the city also saw major capital moves during the week. Grab chief executive Anthony Tan purchased roughly 30 million US dollars in company shares, while president Alex Hungate bought about 867,000 US dollars in stock on Sept 21 following a sharp sell-off.

    Grab stock had dropped to a three-year low of 2.74 US dollars on Sept 18 after the company unveiled a 1.49 billion US dollar acquisition of a 60 per cent stake in buy-now-pay-later specialist Atome Financial. The transaction includes terms to acquire the remaining 40 per cent around the third quarter of 2027, which could value Atome at up to 4.5 billion US dollars. The executive purchases helped lift Grab shares 10.6 per cent across the week to close at 3.13 US dollars on Sept 25.

    Stricter corporate disclosures set for 2027

    Corporate governance requirements across Singapore’s capital markets will tighten under new rules announced by the Singapore Exchange Regulation on Sept 23. Starting Jan 1, 2027, all listed issuers must publish dedicated investor relations policies detailing direct investor communication channels.

    Annual reports will also require clear explanations of the specific factors determining executive director and chief executive pay, along with explicit statements on dividend policies. Companies that elect not to pay dividends will have to disclose their formal reasons for withholding distributions to shareholders.

    The benchmark Straits Times Index ended Sept 25 at 5,711.12, supported by gains across the local banking sector. Attention in the telecom sector now shifts to formal structure filings from StarHub and Keppel, alongside the regulator’s response to the proposed combination.

  • Grab to Acquire Atome Financial in Deal Valued at up to $4.5 Billion

    Grab to Acquire Atome Financial in Deal Valued at up to $4.5 Billion

    Grab announced on Tuesday it will acquire buy now, pay later provider Atome Financial in a transaction that could value the Singapore-based lender at up to US$4.5 billion.

    The ride-hailing and delivery platform is paying $1.49 billion for an initial 60 per cent stake. The transaction folds Atome’s consumer cash loans, instalment cards and digital lending books directly into Grab’s financial services arm.

    Valuation and Performance Terms

    Grab agreed to purchase the remaining 40 per cent stake roughly two years after completion. That second payout rests on Atome hitting revenue and EBITDA targets. The eventual valuation will land between $2 billion and $4.5 billion.

    Alex Hungate, Grab president and chief operating officer, said buying Atome bypasses years of building credit models. It also avoids the initial credit losses required to refine underwriting. Grab plans to fund Atome’s consumer loan book through its licensed digital banks in Singapore, Malaysia and Indonesia to lower capital costs.

    Lending Power Inside Southeast Asian Wallets

    Consumer credit in Southeast Asia is consolidating around apps that control daily transactions. Independent instalment lenders face high customer acquisition costs and rising borrowing expenses. Stand-alone balance sheets struggle to compete with platforms that span ride-hailing, food delivery and retail spending.

    Buying Atome prevents rival e-commerce ecosystems and standalone fintechs from locking up merchant checkouts in key growth markets. The risk shifts to default rates on unsecured consumer debt as economic conditions tighten in markets such as Indonesia and the Philippines.

    “Consumer credit in Southeast Asia is increasingly sitting inside large commerce platforms or major wallet ecosystems. As underwriting and collection increasingly become commoditised, distribution becomes more important.”

    From Credit Saison to Regional Scale

    In 2019, Grab entered instalment lending through a joint venture with Japanese credit card company Credit Saison. The platform rolled out pay-later options across Singapore and Malaysia. Regional expansion into the Philippines, Indonesia and Thailand lagged behind dedicated consumer finance specialists.

    The buyout is scheduled to close by the third quarter of 2027. Following integration, Grab expects its enlarged financial services unit to deliver $500 million in adjusted EBITDA by 2028 on a combined gross loan portfolio exceeding $6 billion.

  • Singapore Exchange Broadens Horizons with SpaceX and Grab Depository Receipts Launch

    Singapore Exchange Broadens Horizons with SpaceX and Grab Depository Receipts Launch

    Singapore Exchange (SGX), the country’s stock exchange, has announced that it will introduce depository receipts for three major tech companies: SpaceX, Grab, and Sea. This announcement was made on Tuesday, with the trading of the depository receipts set to commence the following day. The addition of these companies allows investors to trade in Singapore Dollars during local trading hours.

    The introduction of these three businesses expands the SGX’s offering to a total of 38 depository receipts, adding to those already available from companies across Thailand, Indonesia, Hong Kong, and the United States. This expansion serves to further diversify and enhance the offerings available to investors in the local market.

    The Impact on Retail Investors

    The SGX highlights that the inclusion of these companies, especially the launch of SpaceX’s depository receipts following its historic IPO last month, provides retail investors with unprecedented access to these equities. The depository receipts offer a simplified and convenient method for investors to gain exposure to these equities, using local currency.

    Grab and Sea, while both listed in the U.S., are headquartered in Singapore, further solidifying the SGX’s position as a global hub for investment. Bernice Tan, a representative from the Securities Market & Depository with SGX, expressed that the new addition mitigates traditional challenges such as foreign exchange friction and the complexities of overseas markets. She added that this allows investors to build a globally diversified portfolio in the Singapore Dollar, within a familiar trading environment.

    Questions & Answers

    What is the significance of introducing depository receipts for SpaceX, Grab, and Sea to the Singapore Exchange?
    Introducing depository receipts for these companies provides investors with more diversification options. It allows them to invest in these companies using local currency and during local trading hours.

    How does the introduction of these companies impact the SGX’s portfolio?
    The addition of SpaceX, Grab, and Sea expands the SGX’s portfolio to a total of 38 depository receipts, alongside those from Thailand, Indonesia, Hong Kong, and the U.S., enhancing its offerings.

    What advantages do these new additions offer to retail investors?
    The new additions provide a simplified and convenient way for retail investors to gain exposure to these equities, mitigating challenges such as foreign exchange friction and overseas market complexities.

  • Grab and GoTo Yield to Pressure: Slash Driver Commissions in Indonesia

    Grab and GoTo Yield to Pressure: Slash Driver Commissions in Indonesia

    Indonesia’s GoTo, a ride-hailing and food delivery company, alongside Singapore-based Grab, announced they will reduce the per-trip commissions for their two-wheeled driver partners in Indonesia. Beginning July 1, the commission rate will be slashed from 20% to 8%.

    Implementation of Reduced Commissions

    Indonesia’s President, Prabowo Subianto, first brought up the idea of an 8% cap on commissions in his speech on May 1. However, he did not provide details regarding when this initiative would be implemented.

    GoTo’s VP Director, Catherine Hindra Sutjahyo, expressed the company’s support for the initiative at a press conference. “We support the efforts to continue increasing the prosperity of the drivers,” she stated.

    Neneng Goenadi, Grab Indonesia’s CEO, echoed Sutjahyo’s sentiments. Both leaders confirmed that their respective companies will start applying the new 8% commission rate from July 1.

    Impact on Ride-Hailing Platforms

    This development was first reported in January, with concerns raised about its potential effect on the profitability of ride-hailing platforms, particularly in Southeast Asia, which serves as their largest market.

    Cucun Ahmad Syamsurijal, the Deputy Parliament Speaker, lauded the reduced commissions as a testament to President Prabowo’s administration’s commitment to supporting all ride-hailing drivers in the country.

    Questions & Answers

    **What is the new commission rate for two-wheeled drivers for GoTo and Grab in Indonesia?**
    The new commission rate is 8%, reduced from the previous rate of 20%.

    **When will the new commission rate take effect?**
    The new commission rate will be implemented starting July 1.

    **What potential impact could this reduction have on ride-hailing platforms?**
    The reduction could potentially affect the profitability of ride-hailing platforms, particularly in Southeast Asia, their largest market.

  • Grab Powers Through 2026 with Record Q1 Results and Bold Expansion Beyond Southeast Asia

    Grab Powers Through 2026 with Record Q1 Results and Bold Expansion Beyond Southeast Asia

    Southeast Asian superapp, Grab, has reported its strongest first quarter to date, with plans to expand beyond its home market for the first time. It plans to do so with an investment of $600 million.

    Grab’s CEO and co-founder, Anthony Tan, expressed his satisfaction with the results, stating that the company achieved its objective of starting 2026 robustly. Grab recorded a revenue of US$955 million for the first quarter, which ended on March 31, representing a year-on-year increase of 24%. Its adjusted EBITDA reached US$154 million, up by 46% from the same period in the previous year, marking the company’s seventeenth consecutive quarter of EBITDA growth.

    Despite the period being typically quiet due to the Ramadan fasting month and Lunar New Year celebrations, the company managed to increase its number of monthly transacting users by 16% to 51.6 million.

    Growth Across Segments

    The overall gross merchandise value of Grab’s deliveries and mobility segments rose to US$6.1 billion in the quarter, with the delivery sector growing by 25% and mobility by 23%, year-on-year. The company’s financial services also observed a 43% leap in revenue to US$107 million.

    However, the company faces operational challenges due to the regional surge in fuel prices—an issue with no straightforward solution for a business model that depends on daily refuelling by millions of driver-partners. To navigate this issue, Grab launched various initiatives in March, including multi-partner fuel discount programs and restructuring incentive models to maximize driver earnings. Grab also collaborated with governments to ensure driver-partners could access available transport-worker fuel subsidies.

    Recently, Grab became the first platform to offer point-to-point cross-border taxi services between Singapore and Malaysia, one of the world’s busiest international land border crossings.

    Expansion Plans

    During the quarter, Grab agreed to acquire Delivery Hero’s foodpanda delivery business in Taiwan for US$600 million in cash. This represents Grab’s first expansion beyond Southeast Asia in its 14-year history. The acquisition is expected to be finalised in the second half of the year, expanding Grab’s presence across 21 cities. Upon completion, Grab would hold a market share of just over 50%, positioning it as a formidable competitor to Uber Eats.

    Moving forward, Grab’s full-year guidance remains unchanged, with predictions of 20% to 22% growth in revenue and 40% to 44% growth in adjusted EBITDA. The company expects in-demand GMV growth in each remaining quarter of this year.

    Questions & Answers

    What is Grab’s first quarter revenue for 2026?
    Grab reported a revenue of US$955 million for the first quarter of 2026.

    What operational challenges is Grab facing?
    Grab is facing operational challenges due to the regional surge in fuel prices affecting millions of its driver-partners.

    What is Grab’s expansion plan?
    Grab plans to acquire Delivery Hero’s foodpanda delivery business in Taiwan, marking its first expansion beyond Southeast Asia.

  • Grab Defies Fuel Crisis with Double-Digit Growth: Record Earnings and Soaring Demand in Q1

    Grab Defies Fuel Crisis with Double-Digit Growth: Record Earnings and Soaring Demand in Q1

    Singapore-based Grab Holdings kicked off the new financial year on a high note, reporting double-digit growth in its first-quarter revenue and earnings, reflecting the company’s robust resilience in the face of market fluctuations.

    Impressive First-Quarter Results

    Grab’s revenue for the first quarter, ending March 31, climbed by 24%, amounting to US$955 million. This represents a 19% increase when considered on a constant currency basis.

    The gross value of the company’s on-demand merchandise, a key indicator of transactions from Grab’s mobility and delivery branches, also witnessed a significant jump. It surged by 24% according to reported figures and 21% on a constant currency basis.

    The firm recorded a striking 46% increase in its Adjusted EBITDA, reaching a record-setting figure of $154 million. Profits also displayed an upward trend, going from $10 million in the previous year to $120 million.

    Grab’s Group CEO and Co-founder, Anthony Tan, attributed these strong outcomes to the resilience of the company’s platform, particularly in the face of Southeast Asia’s unpredictable macroeconomic climate, which is currently grappling with a fuel crisis.

    Supporting Driver-Partners Amid Rising Fuel Prices

    Grab acknowledged an increase in its on-demand incentives during the quarter. This move was taken to bolster the earnings of driver-partners as fuel costs across the region spiral upwards. It also aimed to cater to the increased demand during the festive season.

    Segment-Wise Performance

    Looking at the performance of different sectors, the delivery revenue witnessed a 23% surge, totaling $510 million. The mobility revenue increased by 19%, amounting to $337 million. The financial services sector also saw a boost in revenue, with a 43% rise that led to $107 million.

    Outlook for the Full Year

    For the upcoming year, Grab maintains its revenue forecast, predicting a figure between $4.04 billion and $4.10 billion, indicating a 20-22% rise. The Adjusted EBITDA is also expected to grow by 40-44%.

    As the company moves forward, it reaffirms its commitment to ensuring durable, profitable growth while standing in solidarity with its communities. According to Tan, the company plans to leverage AI to deliver hyper-personalized experiences for users while creating more sustainable earning opportunities for ecosystem partners.

    Expansion Beyond Southeast Asia

    Earlier this year, Grab made its debut outside Southeast Asia by acquiring Delivery Hero’s Foodpanda business in Taiwan for $600 million.

    Questions & Answers

    What was Grab’s first-quarter revenue?
    Grab’s revenue for the first quarter was US$955 million, representing a 24% increase.

    What steps has Grab taken to support its driver-partners amid the fuel crisis?
    Grab has increased its on-demand incentives to bolster the earnings of driver-partners affected by rising fuel costs.

    What are Grab’s revenue predictions for the upcoming year?
    Grab estimates its revenue to be between $4.04 billion and $4.10 billion, indicating a 20-22% rise.

  • Grab Acquires Foodpanda Taiwan in $600M Deal: A Bold Leap in Global Expansion Strategy

    Grab Acquires Foodpanda Taiwan in $600M Deal: A Bold Leap in Global Expansion Strategy

    In an ambitious move towards global expansion, Grab, Southeast Asia’s leading ride-hailing and delivery company, has announced its first venture beyond its home territory. The Singapore-based firm will acquire the Taiwan branch of Delivery Hero’s Foodpanda service in a cash transaction amounting to $600 million.

    Acquiring a Strong Foothold in Taiwan

    By acquiring Foodpanda Taiwan, Grab gains a significant operational presence outside of Southeast Asia. This acquisition is seen as a strategic part of Grab’s broader expansion plan, which is primarily focused on artificial intelligence, introducing new services, and making selective overseas deals.

    Grab’s group CEO and co-founder, Anthony Tan, believes that the company’s vast experience in the Southeast Asian market will be a perfect match for the Taiwanese market. “This is a natural next step for Grab,” he said.

    Deal Details and Future Prospects

    The expected completion of the deal, which is subject to regulatory approval and other closing conditions, is slated for the latter half of 2026. The venture is anticipated to contribute at least $60 million in incremental adjusted core earnings (EBITDA) by 2028.

    In Taiwan, Foodpanda generated around $1.8 billion in gross merchandise value in 2025 and was profitable before Delivery Hero group cost allocations.

    Earlier this year, it was reported that Grab has set targets for its revenue growth, aiming for more than 20% annually over the next three years. The company also plans to triple its EBITDA to $1.5 billion by 2028.

    Grab also reaffirmed its 2026 adjusted EBITDA guidance of $700 million to $720 million. The acquisition is projected to enhance its 2026 group revenue forecast, which currently stands between $4.04 billion and $4.10 billion.

    The company plans to complete the migration of users, merchants, and drivers to the Grab application by early 2027.

    Delivery Hero’s Strategic Move

    The CEO of Delivery Hero, Niklas Oestberg, stated that the sale of the Taiwan branch is a crucial first step in reviewing the group’s activities strategically. The proceeds from the deal will be used to pay off the company’s debts.

    Despite facing criticism from shareholders, most notably Aspex Management, for the company’s perceived slow progress in strategic review and a near one-third decrease in share value, Delivery Hero’s shares rose nearly 11% following the announcement of the deal.

    Aspex Management released a statement saying that while divesting assets is a positive step, more needs to be done for Delivery Hero to regain trust from capital markets, particularly as it continues to accumulate regulatory fines and inefficiently manage capital.

    Questions & Answers

    What will be the value of the acquisition deal between Grab and Foodpanda Taiwan?
    Grab will pay $600 million in cash to acquire Foodpanda Taiwan.

    When is Grab expected to complete the migration of users, merchants, and drivers to its app?
    The migration process is expected to be completed by early 2027.

    What will be the use of the proceeds from the sale of Foodpanda Taiwan?
    Delivery Hero plans to use the proceeds from the sale to repay its debts.

  • Grab Seals $600M Deal for Foodpanda Taiwan, Marks Historic Expansion Beyond Southeast Asia

    Grab Seals $600M Deal for Foodpanda Taiwan, Marks Historic Expansion Beyond Southeast Asia

    The Singapore-founded super app, Grab, has declared its venture beyond Southeast Asia with a proposed acquisition of Foodpanda’s Taiwan operation, owned by Delivery Hero, for a cash sum of US$600 million. This acquisition is anticipated to conclude in the second half of the current year, pending regulatory approvals, and will be conducted on a cash-free, debt-free basis.

    Integrating Foodpanda

    Following the acquisition, Grab intends to incorporate Foodpanda Taiwan into its extensive delivery ecosystem. The company has plans to introduce its AI-driven logistics, mapping, and personalisation tools to improve service quality for consumers, merchants, and delivery associates. The aim is to deliver these improvements by leveraging its advanced technology and extensive experience in managing complex delivery logistics for densely populated and high-traffic cities.

    An Exciting Expansion

    The acquisition signifies Grab’s initial expansion outside Southeast Asia, making Taiwan the company’s ninth market. Anthony Tan, Group CEO and co-founder of Grab, expressed his enthusiasm for the expansion, stating that their experience in Southeast Asia makes Taiwan a logical next step. He also commented on how their expertise in dealing with complex delivery logistics in bustling cities is perfectly tailored for Taiwan’s thriving urban centres.

    Upon completion of the acquisition, Grab will be operational in 21 cities across Taiwan. It’s worth noting that Foodpanda Taiwan reported approximately US$1.8 billion in Gross Merchandise Value (GMV) last year, and was profitable on an adjusted EBITDA basis, excluding group costs from Delivery Hero.

    Continuity and Transition

    Until the deal is finalised, Delivery Hero will proceed with the regular operation of Foodpanda Taiwan. Grab has outlined plans to shift users, merchant partners, and driver partners over to the Grab app by the start of next year. The strategy aims to ensure a smooth transition while consolidating its position in the Taiwanese delivery market.

    Questions & Answers

    What is Grab’s plan following the acquisition of Foodpanda Taiwan?
    Grab intends to incorporate Foodpanda Taiwan into its delivery ecosystem and introduce its AI-powered logistics, mapping, and personalisation tools to enhance service quality for consumers, merchants, and delivery associates.

    How does Grab view its expansion into Taiwan?
    Anthony Tan, Group CEO and co-founder of Grab, considers the expansion into Taiwan as a logical next step, given their experience in Southeast Asia. He also mentioned that their expertise in managing complex delivery logistics is well-suited for Taiwan’s bustling urban centres.

    What are the plans for Foodpanda Taiwan users and partners after the acquisition?
    Grab plans to migrate users, merchant partners, and driver partners over to the Grab app by the start of next year. The aim is to ensure a smooth transition and strengthen its position in the Taiwanese delivery market.

  • Grab Sees Stellar Rebound with First Full-Year Profit, Propelled by Record Q4 Earnings

    Grab Sees Stellar Rebound with First Full-Year Profit, Propelled by Record Q4 Earnings

    Grab Holdings, a Singapore-based technology firm specializing in transportation, food, and e-commerce solutions, has reported a prosperous full-year profit. This marks a significant recovery from the financial deficit experienced in the previous year.

    Strong Financial Performance in 2025

    In the fiscal year of 2025, Grab Holdings generated revenues to the tune of US$3.3 billion and secured profits amounting to $200 million. This powerful comeback effectively eclipsed the previous year’s losses, which stood at $158 million.

    In particular, the fourth quarter of 2025 proved to be a strong period for the company, with earnings totaling $906 million. This figure represents a 19% year-on-year increase.

    Group CEO and co-founder, Anthony Tan, expressed pride in the company’s performance. “We concluded 2025 on a high note, posting our first full year of net profit and surpassing 50 million monthly transacting users,” he said.

    Looking ahead, Tan affirmed plans to maintain this positive trajectory. “Our strategy for the coming years revolves around expanding our market reach through increased affordability and reliability. We also intend to leverage product-led innovations to enhance ecosystem engagement and boost user lifetime values.”

    Growth Across Various Segments

    The company’s robust financial performance was driven by growth across several business segments. Revenues from deliveries increased by 18% year-on-year, while mobility revenues witnessed a 15% growth.

    Peter Oey, CFO of Grab, voiced optimism about the company’s long-term financial prospects, citing the strong foundation built thus far. “We forecast generating $1.5 billion in Adjusted EBITDA with an Adjusted Free Cash Flow conversion of 80% by 2028. This positions us well to accelerate our platform ambitions while maximizing shareholder value,” he stated.

    $500 Million Share Buyback Program

    Reaffirming its commitment to shareholders, Grab Holdings has unveiled a $500 million share buyback program.

    Questions & Answers

    What was Grab Holdings’ financial performance in 2025?
    Grab Holdings reported revenues of US$3.3 billion and a profit of $200 million in 2025.

    What strategies does Grab Holdings plan to implement moving forward?
    Grab intends to expand its market reach through increased affordability and reliability and plans to leverage product-led innovations to enhance ecosystem engagement and boost user lifetime values.

    What does Grab Holdings’ share buyback program entail?
    Grab Holdings has announced a $500 million share buyback program as part of its commitment to providing shareholder value.

  • Indonesian Power Players Grab and GoTo Under Government Review for Potential Market-Shaking Merger

    Indonesian Power Players Grab and GoTo Under Government Review for Potential Market-Shaking Merger

    Possible discussions are currently underway in Indonesia regarding a potential merger or acquisition involving Grab, a ride-hailing and food delivery company, and its competitor GoTo, according to a statement made by the presidential spokesperson on Friday.

    The Indonesian government sees the ride-hailing sector as a strategic factor in generating jobs and boosting the economy. Gojek, a subsidiary of GoTo, alone employs more than 3.1 million online riders. Both Grab and GoTo have long been major players in the Indonesian market.

    If a merger or acquisition does take place, the resulting entity would command a staggering market share of over 91 per cent in Indonesia, based on information provided by data analytics firm Euromonitor International.

    An official announcement regarding the possible merger or acquisition will be made shortly, according to Prasetyo Hadi, an Indonesian government spokesperson.

    “Online riders are the heroes of our economy, propelling it forward,” Hadi declared.

    There has been no immediate comment from Grab or GoTo in response to request for statements.

    Previous reports suggested that Grab, which is listed on Nasdaq, was planning to negotiate a deal to acquire GoTo, a smaller rival, in the second quarter of this year and had engaged advisers to assist with the proposed acquisition. According to a source close to the matter, such a deal could value GoTo at approximately US$7 billion.

    As per its 2024 annual report, GoTo is 73.90 per cent owned by foreign investors, including SoftBank Group and Taobao China Holding, a subsidiary of China’s Alibaba Group. The remaining stakes are held by Indonesian investors.

    Questions & Answers

    What is the potential impact of Grab and GoTo’s merger or acquisition on the Indonesian market?
    If Grab and GoTo merge or if one acquires the other, the resulting entity would control over 91% of the Indonesian market, according to data from Euromonitor International.

    Who are the main investors in GoTo?
    Foreign investors, including SoftBank Group and Taobao China Holding, own 73.90% of GoTo. The remainder is owned by Indonesian investors.

    What was GoTo’s potential value earlier this year?
    Earlier this year, a source close to the matter mentioned that a potential deal could value GoTo at around US$7 billion.