Tag: ride sharing

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Grab aims to break even by H2 2024

It will be interesting to see how Grab make the economics work for Grab rides and food, considering South East Asia is a highly competitive market.

Grab Sees Slowing Growth As It Aims To Break Even By Second Half 2024

Grab Holdings said it’s aiming to breakeven by the second half of 2024 on an adjusted earnings basis before interest, taxes, depreciation and amortization, although the growth of its business is slowing.

Grab was established 10 years ago, but it’s never managed to turn a profit. Grab’s shares have lost more than 70% of their value since going public on Nasdaq through a merger with Altimeter Capital Management’s SPAC (special purpose acquisition company).

The Singapore-based company said its revenue would grow 45-55% in 2023 on a constant currency basis, which is slower than its forecast for the current year.

Grab has also recently launched a digital bank—called GSX Bank—in Singapore in partnership with Singtel, and has plans to launch two more banks in Indonesia and Malaysia next year. Grab said on Tuesday that it expects the bank to break even by 2026.

Source: Forbes
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Travel

Uber can finally focus on customer complaints

In the past couple of years, it appears that Uber is working on supply issues. Maybe the company’s drop the ball on the experience itself. I’ve had to wait longer than expected for an Uber right. It seems like this is next in Uber’s list to tackle:

Uber says its chronic shortage of drivers is finally in the rear-view mirror, allowing it to focus on passenger complaints such as cancellations and wait times, according to a top executive at the global ride-hailing group.

The company’s ten largest markets, which together make up more than three-quarters of its bookings, all saw month-on-month driver growth in August, said Andrew Macdonald, Uber’s head of mobility. “That is indicative of a broad-based trend we are seeing around the world,” he added. Globally driver supply is up 70 per cent year-on-year, while the UK hit 85,000 active Uber drivers in August, the highest number ever on the country’s roads.

Resolving its driver shortage has allowed Uber to turn its attention to addressing other customer complaints, including long wait times and drivers who cancel after initially accepting a trip, said Macdonald, a 10-year Uber veteran who took over global responsibility for its ride-hailing business in 2019.

Source: FT
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Technology

Uber partners with Hertz to offer 50,000 Tesla

Uber Technologies Inc on Wednesday said it is launching a new partnership with rental car company Hertz to offer 50,000 Tesla Inc vehicles as a rental option for its ride-hail drivers by 2023.

The announcement comes after Hertz on Monday said it would order 100,000 Tesla vehicles by the end of 2022, meaning that half of the rental company’s Tesla fleet would be reserved exclusively for Uber drivers.

For Uber drivers, Tesla rentals will start out at $334 a week, including insurance and maintenance, and consist mostly of the company’s Model 3 sedan. Uber said the rental cost would drop to $299 per week or lower as the program expands in the coming year.

Yahoo

I think this is a right step to electrification in automobiles. Also great news for Hertz being relevant again with electric cars. And of course, sweet win for Tesla.

This is also related to Newsom’s executive order to have California state to require that, by 2035, all new cars and passenger trucks sold in California be zero-emission vehicles.

Following the order, the California Air Resources Board will develop regulations to mandate that 100 percent of in-state sales of new passenger cars and trucks are zero-emission by 2035 – a target which would achieve more than a 35 percent reduction in greenhouse gas emissions and an 80 percent improvement in oxides of nitrogen emissions from cars statewide. In addition, the Air Resources Board will develop regulations to mandate that all operations of medium- and heavy-duty vehicles shall be 100 percent zero emission by 2045 where feasible, with the mandate going into effect by 2035 for drayage trucks.

California gov