Grab, Southeast Asia’s biggest ride-hailing and food delivery firm does not envisage having to undertake mass layoffs as some rivals have done. The company is selectively hiring while reining in its financial service ambitions.
Chief Operating Officer Alex Hungate said Grab had been worried about a global recession earlier this year. Grab is now mainly focussing on selling its lending products and insurance on its platform to merchants and drivers. Grab’s shares have tumbled about 60% this year to give it a market value of $10.6 billion. It listed on the Nasdaq in December after a record $40 billion merger with a blank-check company.
Hungate said Grab would provide details of its progress towards profitability and other metrics at its first investor day on Tuesday. Grab, a household name in Southeast Asia, had about 8,800 staff at the end of 2021. Like its rivals, it has benefited from a boom in food services during the COVID-19 pandemic, while ride-hailing suffered. Grab’s second-quarter loss narrowed to $572 million from $801 million a year earlier, but it cut its gross merchandise volume outlook for the year.