Singapore's Grab lifts annual forecasts as AI, incentives drive growth
Grab has increased its annual revenue and profit forecasts for the upcoming year. Strong demand for ride-hailing and delivery services fuels this positive outlook. The company's affordability strategy and AI investments are key drivers of growth. Grab also announced a significant new share buyback program for investors. These developments reflect Grab's confidence in its future performance.
Singapore's Grab, the dominant ride-hailing and delivery service in Southeast Asia, has raised its annual revenue and profit forecasts, citing strong demand for its services and strategic initiatives. The company's optimism was bolstered by promotional offers, driver incentives, and its AI-driven efforts, which have helped maintain low prices for customers while supporting drivers despite soaring fuel costs.
Grab's CFO, Peter Oey, explained that the company's affordability strategy, bolstered by AI investments, has led to increased driver earnings and customer acquisition. In addition to raising its revenue and profit forecasts, Grab announced a $750 million share buyback program. Shares of the Nasdaq-listed company surged 4% in extended trading following the upbeat projections.
The company's gross merchandise value (GMV) rose 21% to $6.5 billion in the latest quarter. For 2026, Grab now anticipates revenue between $4.10 billion and $4.15 billion, slightly higher than previously projected, and expects margin improvements driven by AI investments and cost-cutting measures.
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