Grab is set to introduce self-driving buses in Singapore, its primary market, by early 2026, leveraging its substantial commitment to autonomous vehicle advancements.
Grab's co-founder and CEO, Anthony Tan, shared this news on Tuesday during the company's quarterly financial report, which detailed the period ending September 30th.
“Grab will continue to build new partnerships with more global remote driving and AV leaders, participate in more pilots to understand the operational conditions for different driverless services, and be part of the regulators’ efforts to improve transport connectivity through driverless technologies,” Tan said in prepared remarks.
Grab ran a successful pilot of autonomous vehicles in September, rolled out in partnership with WeRide, a Chinese robotaxi operator. Earlier this year, Grab announced it would make a “strategic equity investment” in WeRide, to be completed in the first half of next year.
In late October, Grab also put money into U.S.-based May Mobility, a different autonomous vehicle provider. May Mobility began offering commercial rides via robotaxis in the U.S. At the start of this year.
During a Q&A session with analysts, Tan described the investments as part of a “long-term strategy to lead the adoption of AV and remote driving across Southeast Asia.” However, he conceded that autonomous vehicles might face greater challenges in the region, owing to lower labor expenses when contrasted with developed economies such as the U.S. Or Singapore. “It will require considerable time for the unit economics to reach parity with human drivers.”
Tan also offered suggestions on how Grab could enhance the skills of its existing human drivers as it explores self-driving vehicles. “We see new kinds of jobs emerging. For example, drivers could be remote safety drivers, data labelers; they could change LiDARs, cameras, and so forth.”
A bumper quarter
Grab announced in its most recent quarter that its revenue reached $873 million, marking a 22% increase compared to the prior year's corresponding period. The technology firm experienced double-digit expansion across all its operational segments: deliveries, ride-hailing, and finance. Ride-hailing revenue saw a 17% year-over-year increase, totaling $317 million. Deliveries revenue climbed 23% to $465 million, while financial services demonstrated the most rapid growth, up 39% to $90 million.
The company also hiked its profits forecast for the full year; it now expects $480 million to $500 million in adjusted EBITDA for 2025.
Grab's stock price declined by 4.7% on Tuesday during U.S. Trading, possibly influenced by modest profit growth projections for the ongoing quarter. The company announced a net income of $17 million, a marginal increase from the $15 million figure from the previous year.
On the earnings call, Tan reiterated the company's dedication to incorporating artificial intelligence (AI) into its processes, aiming to improve both “internal efficiencies and external innovation”. More than 98% of Grab's engineers are currently leveraging AI for coding, speeding up their development timelines.
Tan further noted that AI advancements have enhanced app user experience, particularly for visually impaired individuals who benefit from improved speech recognition. This technology now accurately understands speech across various regional accents at a 90% success rate, a significant increase from its previous 46% accuracy.