With a focus on sustainable growth, Southeast Asian technology group Grab is revving up efficiency across its processes as it targets profitability by 2024.
The Nasdaq-listed firm valued at about $10.8 billion expects revenue to grow by 45%-55% year on year in 2023 and is targeting to hit the breakeven point by the second half of 2024 on group adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) basis, according to a press release on Tuesday (Sept. 27).
Grab said at its first Investor Day that it also expects to reach breakeven for its digital bank operations by 2026.
See also: As Delivery Demand Falls, Grab Looks to Cut Costs
Just-in-Time Allocation is a new solution introduced this year to improve the accuracy of food preparation time estimates. With the new solution, orders are allocated to drivers to have them arrive just before or right after food is ready for pick up.
“In July 2022 alone, this eliminated approximately 12 million minutes of driver-partner wait time from our network compared to February 2022, when we started this initiative,” according to the release.
Grab plans to improve on-demand efficiency across core verticals with tech-driven solutions to increase productivity. New solutions have enabled driver-partners to make shorter stops, deliver larger batches and boost overall productivity. As of August 2022, Grab has seen 19% higher batch rates, as well as an 11% increase in trips per transit hour, according to the release.
Read more: Food Delivery Service Grab Expands Subscription Program as Users Seek Deals
“We’ve been firing on all cylinders to improve our profitability trajectory and deliver growth in a sustainable manner. Ten years and ten billion journeys later, we still feel like we are barely scratching the surface in our mission to drive Southeast Asia forward,” said Grab CEO Anthony Tan.
He added that the region has a “huge runway of growth” and Grab is in a position to take advantage of the many opportunities.
“We will drive towards becoming Southeast Asia’s largest and most efficient on-demand platform that enables local commerce and mobility,” Tan said.
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