AI Strategy - Key Takeaways from Our Investor Call With Grab's CFO

Research evidence excerpt

AI Strategy - Key Takeaways from Our Investor Call With Grab's CFO

dscape has gotten more “rational” with less promotional intensity and a shift towards

a focus on unit economics and margins. Additionally, Mr. Oey highlighted that consolidation across the market remains a central theme

with several key players pulling out of various markets (such as Deliveroo (owned by DoorDash (DASH, Buy) pulling out of Singapore).

While DoorDash and Uber do not currently have a presence in SE Asia, we believe a similar trend could be observed across other

competitive markets in which both companies operate.

Despite elevated gas prices, consumer remained Resilient in April and May/driver supply remains healthy – something we have

heard/seen from Uber, Lyft and DoorDash as well. We also discussed supply dynamics across the marketplace in the face of elevated

gas prices. Per commentary from Mr. Oey, both supply and demand on the platform remain robust despite elevated gas prices, although we

note that the impact varies by market as certain government subsidize fuel (such as Indonesia/Malaysia). In other markets, Grab lowered

its commissions to aid drivers on the platform. Net-net, supply remains healthy with its driver base up 4% Q/Q and 16% Y/Y in 1Q26. As

importantly, demand also remains healthy reflected by the company posting on-demand GMV growth of 24% Y/Y in 1Q26 (+21% Y/Y FXN).

We have observed similar strong supply & demand trend among ride hailing and food delivery companies under coverage (DASH, LYFT,

and UBER) based in part on our analysis of our proprietary card data. We believe the robust trends that have been observed in SE Asia

attest to the habitual nature of ride hailing and food delivery services on the demand side and the earnings power for drivers and couriers.