Southeast Asia’s super app Grab is targeting to achieve breakeven on a group adjusted EBITDA basis by the second half of 2024 on the back of the acceleration of its path to profitability.
Grab said in a statement that for the second half of 2022, the 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.
“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,” said Anthony Tan, CEO and co-founder, Grab.
“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. 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,” Tan added.
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.
It also aims to leverage partnerships to drive growth for grocery and mart deliveries in a cost-sustainable manner, as a key growth initiative to support its goal to build the largest and most efficient on-demand platform for mobility and deliveries.
Following its acquisition of a majority economic interest in Jaya Grocer in Malaysia, Grab has entered a strategic partnership and investment into PT Trans Retail (Trans Retail), part of a leading consumer conglomerate group CT Corp and one of Indonesia’s largest hypermarket chains.
The strategic partnership aims to accelerate the expansion of on-demand grocery delivery while creating better grocery shopping experiences for consumers in Indonesia.