Southeast Asia's largest ride-hailing and delivery company, Grab Holdings, is betting on artificial intelligence and expanding into new services such as online groceries and financial products, aiming to triple its profits by 2028, according to the company's president.
In an interview at the company's Singapore headquarters, Grab's President and Chief Operating Officer Alex Hungate stated that the company has set a three-year target: to achieve annual revenue growth exceeding 20% and to increase its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) to three times the level of last year, reaching $1.5 billion by 2028.
The ride-hailing industry in Southeast Asia has shifted from subsidy-driven expansion to a focus on profitability. Companies are facing pressure from rising operational costs while aiming to monetize a super-app that bundles transportation, delivery, and financial services, optimized by AI.
Grab Holdings, which is listed on Nasdaq, earlier this month reported its first-ever full-year net profit for 2025, following 14 years of operation and billions of dollars in funding. However, the company's revenue and adjusted EBITDA forecasts for 2026 fell short of Wall Street estimates, leading to a decline in its share price. Year-to-date, Grab's stock has fallen more than 15%, compared to an 11% drop for Uber and a 31% decline for Lyft.
In a research report this week, Huatai Securities noted that increased investment in autonomous driving partnerships and artificial intelligence could potentially weigh on profitability. The report also highlighted risks including "slower-than-expected user penetration improvements and macroeconomic volatility."
Hungate stated that Grab Holdings aims to achieve its 2028 target by enhancing the efficiency of its main application and delivery network. He added that because users are already highly engaged with the Grab platform, the company can bundle services like ride-hailing, food delivery, and grocery delivery at a lower cost.
The company, which operates in over 900 cities across Southeast Asia, is also expanding its financial services. Hungate said that leveraging its own data, Grab can provide loans more accurately than traditional banks.
He also mentioned that Grab Holdings has made "initial forays" outside of Southeast Asia, including the acquisition of the US wealth management platform Stash.
Hungate stated that the "primary and best use" of Grab's cash is reinvestment within Southeast Asia to drive organic growth, but the company remains open to selective acquisitions.
He said there are currently no plans for a secondary listing. Regarding media reports of a potential merger with smaller Indonesian competitor GoTo, he stated there is "no update at this time."
He added that Grab is developing AI agents to improve user loyalty and provide automated assistants for drivers and merchants.
While collaborating with foundational model providers like OpenAI, Hungate indicated the company prefers to use these technologies to build its own proprietary agents rather than directly integrating popular chatbots like ChatGPT.
He said, "We believe that our brand and the frequency of user interaction mean that an agent we launch can provide a better service for our users."
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