Recently, Grab reported its full-year results, showing a significant reduction in losses—bringing them down to USD 158 million from the previous USD 458 million. This improvement is certainly encouraging as the company continues to streamline its operations. However, there’s reason to remain cautious about its overall financial health.
One looming challenge is the increase in costs related to mandatory Central Provident Fund (CPF) contributions for platform workers. Although the Singapore government plans to subsidize a significant portion of these costs over the next three years, Grab will still have to shoulder some expenses. This development threatens to offset the cost savings Grab has managed to achieve so far, potentially impacting their financial performance in 2025.
Looking ahead, I anticipate that Grab will continue to incur losses throughout 2025. Additionally, as other Southeast Asian nations are also working on regulations to safeguard platform workers, Grab’s expenses in its delivery and ride-sharing sectors are likely to increase. This scenario could pose significant challenges for the company moving forward.
In terms of future outlook, Grab has projected EBITDA gains of USD 470 million for the financial year 2025, up from the current USD 313 million. While this guidance signals positive momentum, the hurdles ahead mean the road to sustained profitability may still be a challenging one.
