Singapore's Grab bets on AI, new services to triple profit by 2028

Southeast Asia’s biggest ride-hailing and delivery company, Grab, is planning to use artificial intelligence (AI) and expand into new services like online groceries and financial products to triple its profit by 2028.

In an interview with Reuters at the company’s Singapore headquarters, Grab President and Chief Operating Officer Alex Hungate said the company aims to grow revenue by more than 20% every year for the next three years. It also plans to increase its EBITDA (earnings before interest, taxes, depreciation and amortisation) to $1.5 billion by 2028 — three times last year’s level.

Ride-hailing companies in Southeast Asia are now focusing more on profits instead of rapid expansion supported by heavy discounts. Companies are facing rising costs and are trying to use AI-powered “super apps” to combine services like rides, food delivery, grocery shopping, and financial services in one platform.

Grab, which is listed on the Nasdaq stock exchange, recently reported its first-ever full-year net profit in 2025 — 14 years after it was founded. However, its forecast for 2026 revenue and adjusted EBITDA was lower than what Wall Street expected, causing its share price to fall.

This year, Grab’s stock is down more than 15%. In comparison, Uber shares are down 11% and Lyft shares are down 31%.

In a recent note, Huatai Securities warned that higher investments in autonomous vehicles and AI could reduce short-term profitability. It also highlighted risks such as slower growth in new users and global economic uncertainty.

Grab operates in more than 900 cities across Southeast Asia. Hungate said the company plans to achieve its 2028 targets by improving efficiency in its main app and delivery network. Since many users already use Grab frequently, the company can bundle services like transport, food delivery, and groceries at lower costs.

The company is also expanding its financial services. Hungate said Grab can use its data to assess loan risks more accurately than traditional banks.

Grab has also made small investments outside Southeast Asia, including acquiring a stake in US wealth platform Stash. However, Hungate said the company’s main focus remains reinvesting in Southeast Asia for organic growth, though it is open to selective acquisitions.

He confirmed there are no current plans for a second stock listing and gave no update on media reports about a possible merger with Indonesian rival GoTo.

Grab is also developing its own AI agents to improve customer loyalty, including automated assistants for drivers and merchants. While the company works with AI providers like OpenAI, Hungate said Grab prefers to build its own AI agents rather than directly integrating popular chatbots such as ChatGPT.

He said Grab believes its strong brand and frequent customer usage will help it create AI agents that better serve its users.