AI is helping Grab ship products 3 times faster, CFO says, as company raises forecasts

Grab, a leading ride-hailing and delivery firm in Southeast Asia, has announced a significant increase in its full-year outlook due to robust consumer demand, despite global economic challenges. The company's second-quarter earnings report revealed a record-breaking surge in rides and a remarkable 28% year-on-year increase in product shipments, which has been expedited by an integration of artificial intelligence (AI) technology.

This efficiency has led to improved margins and a more streamlined cost structure, according to Grab's CFO, Peter Oey.

During an interview on CNBC's "Squawk Box Asia," Oey emphasized that AI has become deeply embedded in the company's operations, both in its products and internal processes. He highlighted that the deployment of this technology has contributed to faster product deliveries, resulting in enhanced profitability. The company's revenue for the second quarter saw a 22% year-on-year growth, reaching $997 million, with operating profits soaring to $19 million, marking an impressive 186% increase.

Earnings forecasts have been adjusted upward as well. Grab now expects its annual revenue to fall between $4.10 billion and $4.15 billion, up from the previous range of $4.04 billion to $4.10 billion. Similarly, the company's EBITDA estimates have been revised to $720 million to $740 million, from $700 million to $720 million. Oey attributed these optimistic projections to the sustained demand and the scaling of financial services, which have reached a pivotal point in the business.

Regarding a recent strategic move, Oey disclosed that Grab has entered into an agreement to acquire Delivery Hero's foodpanda business in Taiwan. However, he clarified that the transaction is still pending regulatory approval and is anticipated to be finalized in the second half of the year. Oey expressed his company's intention to introduce the popular Southeast Asian products and services to the Taiwanese market, aiming to broaden its reach and enhance its global footprint.