AI is helping Grab ship products 3 times faster, CFO says, as company raises forecasts
Grab reported second-quarter results on Tuesday and raised its full-year outlook.
Grab, Southeast Asia's leading ride-hailing and delivery firm, has raised its full-year outlook, reporting record second-quarter results that highlight the impact of artificial intelligence (AI) on its operations. CFO Peter Oey stated that AI has become integral to the company's business model, enabling a threefold increase in product shipping speed, resulting in improved margins and a more efficient cost structure.
In the second quarter, the number of rides surged by 28% year-on-year, marking one of the highest increases observed. Revenue grew by 22% year-on-year to $997 million, while operating profit reached $19 million, reflecting an impressive 186% growth for the quarter ending in June. Oey raised the full-year revenue forecast to $4.10 billion-$4.15 billion from the earlier range of $4.04 billion-$4.10 billion, and increased EBITDA estimates to $720 million-$740 million from $700 million-$720 million.
Despite macroeconomic challenges, Oey expressed confidence in the business outlook, noting that consumer demand remains robust. Regarding the acquisition of Delivery Hero's foodpanda business in Taiwan, Oey confirmed the company's ongoing negotiations with regulators and aims to finalize the deal in the second half of the year. This strategic move would bring popular Southeast Asian products to the Taiwan market.
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