Grab Pursue Profitability, Encourage Business "On-demand Grocery" and Digital Banks in Indonesia

Recently senior Grab Holdings Limited (NASDAQ: GRAB) share projected financial performance and corporate strategy towards profitability. The main target is to become an ecosystem super app biggest and platform on-demand most efficient in Southeast Asia.

As summarized in the report, Grab still recorded a loss of $ 1 billion or IDR 15,3 trillion in the first half of 2022, but down from a loss in the same period last year of $ 1,46 billion or IDR 22,3 trillion. Total Segment Adjusted EBITDA in the first half of 2022 lost $94 million or IDR 1,43 trillion, from a profit of $21 million or IDR 319 billion in the first half of 2021.

Meanwhile, in the second quarter of 2022 alone, Grab reported that 62% of total users use two or more services, up from 12% in 2018. In addition, as many as 69% of two-wheeled partners Grab serving transportation orders food delivery. in 2021, Grab pocketed $8,9 billion or grew 24% from the previous year generated by partners driver, deliveredand merchant

Co-Founder and CEO Grab Anthony Tan admits that the company has worked hard to pursue profitability and achieve sustainable growth. Therefore, it has prepared a new plan that will reflect its various plans towards profit.

"Ten years and ten billion journeys later, we feel we are only getting to the surface in driving progress in Southeast Asia. We believe there is runway Huge growth is ahead of us to serve the region, and we are well positioned with the resources we currently have. We will harness the power of the ecosystem super app to assert our leadership in Southeast Asia, but while continuing to optimize our costs," he explained.

Future projections and plans

Grab prepared a number of solid plans to drive the growth of all its business lines, starting from the subscription program Grabunlimited, GrabForBusiness, online grocery, local partnerships, and advertising. Then, Grab plans to expand GXS Bank to Malaysia and Indonesia in 2023, digital bank it just launched in Singapore. Meanwhile, GXS Bank operations are targeted breakeven in 2026.

It understands that the MSME market and workers gig in Southeast Asia is underserved by traditional banks. By having data such as usage behavior on super app and their income, it can accurately expand banking services.

"At the same time, we are also launching proprietary technologies to increase platform efficiency for users merchant and partners driver we. We also plan to focus on service fintech so that we can serve customers well through the launch of digibank," said the Chief Operating Officer Grab Alex Hungate.

Grab targets Group Adjusted EBITDA in the second half of 2022 to reach $380 million, up 27% from the previous semester. Companies are also taking aim breakeven in Group Adjusted EBITDA can be achieved in the second half of 2024. From the revenue side, Grab projected revenue for the year to be $1,3 billion. Next year, Grab targeting revenue growth of 45% -55% (YoY) with constant currency base.

This year, Grab introduced a new initiative called Just-in-Time Allocation aimed at improving the accuracy of time estimates on services food delivery and enable drivers to fulfill more orders. As of July 2022, Grab noted that there were around 12 million minutes of waiting time for driver partners that were successfully eliminated compared to February 2022.

As of August 2022, there is approximately a 22% reduction in waiting time for partners delivered, 19% batch jobs, and 11% trips per transit hour compared to Q2021 XNUMX.S

Grab will also increase the amount merchant 40% more than 2020, by developing self-serve tools and other automation features. Besides that, Grab will increase partner productivity and income driver in the coming year.

Cooperate with Trans Retail

Latest, Grab also announced its partnership with the giant hypermarket chains PT Trans Retail Indonesia belongs to CT Group to offer services Grocery based on-demand. In this service, Grab also operates in Malaysia by acquiring Jaya Grocer.

According to the company, its partnership with Trans Retail can create cost-sustainable in building the platform on-demand for mobility and delivery on-demand most efficient. In addition, it can increase business scale on-demand grocery by leveraging Trans Retail Indonesia's expertise in assets retail, warehouse, and purchasing power.

Currently, Trans Retail Indonesia has more than 110 hypermarket and supermarket spread across 28 cities in Indonesia. In terms of synergy, fine Grab and Trans Retail Indonesia will carry out a two-way integration. Trans Retail will connect the main services Grab to all of his outlets, meanwhile Grab will take advantage of the infrastructure hypermarket Trans Retail to operate at a lower cost. One of them is closing dark store and and moved its operations to Trans Retail.

For information, Trans Retail Indonesia also operates online groceries AlloFresh through a joint venture established with PT Bukalapak.com Tbk (IDX: BUKA) , and Growtheum Capital Partners (investor AlloBank).