Grab$Grab Holdings(GRAB)$ is fighting to achieve profitability. In that context the company's CFOcommented:

In the quarter, we took action to streamline our organizational cost structure. We optimized our fixed costs, shut unprofitable lines of business and continued to taper incentives as a percentage of GMV.

In my opinion, however, Grab's outlook for 2023 profitability could be too confident. There are two major reasons: First, in a recessionary macro-environment it is highly likely that (in my opinion) expensive delivery services will experience amongst the sharpest consumer spending cuts, which would obviously pressure Grab's business model. In that context, in the conference call with analysts Grab's CEO hasadmittedthat:

customers want to save money... they may actually show a preference to order groceries to cook for themselves.

Secondly, I personally believe that food-delivery and ride-hailing companies are structurally unprofitable. Please take note that no major business in this market has yet managed to record a profit. In fact, DoorDash (DASH), UBER (UBER) and Delivery Hero (OTCPK:DLVHF) operate with negative margins.

Moreover, investors should consider that 'gig-economy' services build little customer loyalty and offer arguably no value differentiation against competitors, making the company's value proposition a commodity. This argument is strongly supported by the observation that Grab spent $523 million in incentives while only generating $321 million of sales (June quarter reference).