Grab Lifts Full-Year Forecasts as AI Boosts Delivery Speeds by Over 30%, CFO Reveals

Deep News08-04

Shares of Southeast Asian ride-hailing and delivery leader Grab Holdings (NASDAQ: GRAB) rose 3.3% in pre-market trading on Tuesday after the company posted record second-quarter results and raised its full-year guidance, driven by resilient consumer demand across the region despite macroeconomic headwinds.

For the quarter ended June, Grab Holdings reported revenue of $997 million, a 22% increase year-over-year, while operating profit surged 186% to $19 million. The company lifted its full-year revenue forecast to a range of $4.1 billion to $4.15 billion, up from its prior outlook of $4.04 billion to $4.1 billion. It also raised its EBITDA guidance to between $720 million and $740 million, from the previous $700 million to $720 million.

How AI is driving efficiency

Chief Financial Officer Peter Oey attributed much of the improvement to artificial intelligence. "AI has been deeply integrated into Grab Holdings' operations, whether in product services or internal workflows," Oey said in an interview. He added that the technology has boosted the company's goods delivery speed by over 30%, leading to better profit margins and a more efficient cost structure.

Oey noted that ride-hailing orders in the second quarter surged 28% year-over-year, calling it "one of the highest growth rates we have recorded." He expressed confidence in the business outlook, saying, "Just in July, we continue to see strong demand across all our business lines. Our financial services segment is expanding and is now at an inflection point."

Taiwan acquisition update

Regarding Grab Holdings' planned acquisition of Delivery Hero's foodpanda business in Taiwan, Oey said the company is in close discussions with regulators. The deal is not yet completed, with a target to close in the second half of this year. "Many of the services that Southeast Asians use daily, we also want to introduce to the Taiwan market," he stated.

The upbeat earnings and outlook sent Grab Holdings shares up 3.3% in pre-market trading, reflecting investor optimism about the company's growth trajectory in the region.

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