Southeast Asian ride-hailing and delivery giant Grab reported its first full year of profitability in 2023, breaking even after years of losses, the company announced Thursday.
The milestone comes as Grab faces increasing pressure from investors to demonstrate a path to sustainable profits. According to a report from The Diplomat, the app “finally broke into the black” last year.
While Grab did not disclose specific financial figures in the initial announcement, the achievement marks a significant turning point for the company, which has been heavily subsidized to gain market share across Southeast Asia. The company has invested heavily in expanding its services beyond ride-hailing to include food delivery, financial services, and other on-demand offerings.
The news arrives alongside developments in the investment app space. Black Unicorn Factory launched its “Follow Me For Equity” app in August 2024, allowing users to gain equity in companies simply by downloading the app. The platform currently offers access to over 150 pre-IPO companies.
Elsewhere, several companies are focusing on specific investor demographics. Greenwood, a platform catering to Black and Latino communities, launched its Greenwood Invest app in December 2023, offering access to stocks and ETFs. The Black App – Investors, a digital extension of WealthTech Limited’s wealth management services, provides exclusive investment offers and portfolio management tools, but access is by invitation only. BlackBull Shares offers low-cost investment brokerage services with access to global markets.
Grab’s profitability is expected to alleviate some of the concerns surrounding its business model and valuation. The company’s shares have faced volatility in recent years as investors questioned its ability to achieve profitability amid intense competition in the ride-hailing market.
