Analysts' strong proposition on Grab's core business

For its core business of ride-hailing, food deliveries and financial services, Grab intends to maximise users’ lifetime value while lowering the platform’s cost to serve.

Meanwhile, technological advancements such as just-in-time driver allocation, order batching, route optimisation (through proprietary GrabMaps) are helping to increase drivers’ hourly earnings, and reduce subsidies.

“The achievement in Grabmap and partnership traction from leading global brands demonstrate Grab’s technology and operation expertise,” says $Citigroup(C.US)$ ’s Yap and Cheung.

$CGS(06881.HK)$ ’s Ong and Tan are positive on this aspect too as they believe that this is a key initiative to drive growth for the group.

Subsequently, Grab is working closely with regulators on gig worker protection policies, as it notes that governments have recognised the importance of the gig economy. Hence, Grab expects potential implementation of mandatory retirement benefits and insurance benefits to be carried out in a gradual manner, at a level playing field for all platform players. It has baked in the potential impact into its medium-term steady state margin guidance.