Grab expects to break even by second half of 2024

Grab, which listed on the Nasdaq in December following a record US$40 billion merger with a blank-check company, has been under investor pressure to stem losses from its decade-old business.

Grab‘s shares have shed 61 per cent so far this year, tracking a global rout in tech valuations as investors reassess growth prospects amid rising interest rates and slowing economies.

“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,” said Anthony Tan, CEO and co-founder.

In an interview with Reuters last week, Grab said the company does not envisage having to undertake mass layoffs as some rivals have done, and is selectively hiring, while reining in its financial service ambitions.

Last month, Grab reported a narrower second-quarter loss of US$572 million from US$801 million a year earlier. But it cut its gross merchandise volume outlook for the year, blaming a strong dollar and ebbing food delivery demand.

Operating in 480 cities across eight countries, Grab has more than 5 million registered drivers and more than 2 million merchants on its platform.

Like its rivals such as Indonesia’s largest tech firm, GoTo, Grab benefited from an explosion in food delivery services during the COVID-19 pandemic but its mainstay ride-hailing business suffered and has still not recovered to pre-COVID levels.