Fintech & Ecommerce

Singapore’s Grab Remains Optimistic on Growth Prospects

Grab, a Southeast Asian super app provider is optimistic about long-term growth opportunities.

Singapore’s Grab Remains Optimistic on Growth Prospects

On Wednesday, August 23, this company published an earnings report for the second quarter of 2023, which contains a favorable forecast for the development of the brand. This report indicates that accessibility initiatives and increased interaction through the use of the flagship GrabUnlimited subscription program have become the main levers of scaling the market for drivers, riders, and small businesses.

Grab CEO Anthony Tan said during a phone call with analysts and investors that the company services are currently being used by more people than ever before. In this context, he noted that the number of monthly tracked users in the second quarter of this year reached a record high of 34.9 million people, which is 7% higher than in the same period of 2022.

The firm’s revenue from deliveries for the last quarter amounted to $292 million. This result is 118% higher than the figure for the second quarter of 2022. In this case, user activity is of particular importance to GrabUnlimited. These consumers account for more than 30% of expenses in the segment of goods deliveries’ gross merchandise value (GMV). GrabUnlimited users, on average, spend almost four times more on food delivery services compared to similar spending figures for those who do not have a subscription.

The group revenue of the company as a whole for the second quarter of 2023 increased by 77% year-on-year. Anthony Tan is optimistic about the long-term prospects for the positive dynamics of the firm’s development. He also says that the company has opportunities to strengthen its leadership position in Southeast Asia. According to him, the firm still has something to offer in this region in terms of products and services.

Grab Executive Director Alex Hungate says that in the main markets of the brand’s presence, including Malaysia, Singapore, and Thailand, the levels of GMV mobility in the second quarter of 2023 either exceeded the indicators of 2019 or equaled its. He noted that the company will continue to increase the offers of drivers, which has already approached the volumes that were recorded before the coronavirus pandemic.

The firm’s activities related to financial services also have positive dynamics. In the last quarter, the total volume of loans issued increased by 47% year-on-year. Alex Hungate said that the company has focused on lending to its own ecosystem, which has a deep data analysis that improves the management of disbursed funds and controls over them. Regulators allowed the firm’s digital bank in Singapore, GXS Bank, to increase total deposits in July. As a result of this decision, the maximum deposit amount for individual savings accounts increased from 5,000 to 75,000 Singapore dollars.

The company also intends to use advanced technologies, primarily artificial intelligence in its activities. Anthony Tan stated that generative AI has the potential to improve the user experience and increase the level of efficiency of operational processes. The integration of machine intelligence can also become a growth factor by improving the quality of the brand’s activities.

As we have reported earlier, Grab to test first indoor robot runner service in Singapore.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.