Grab, Southeast Asia’s leading ride-hailing and delivery superapp, posted strong financial results for the third quarter of 2024, driven by double-digit growth across its core businesses: ride-hailing, deliveries, and financial services. Revenue for the three months ending September 30 reached $716 million, marking a 17% increase compared to the same period last year. Grab’s financial performance reflects both an increase in demand and a series of cost-cutting measures aimed at improving profitability.

Revenue from Grab’s ride-hailing business saw a 17% increase, reaching $271 million, while deliveries grew by 13% to $380 million. Financial services, a newer segment, demonstrated the highest growth, rising by 34% year-on-year to $64 million. This performance bolsters Grab’s standing across 700 cities in eight Southeast Asian countries, with an outlook that expects continued momentum, especially in Thailand.

During an earnings call, Grab’s CEO Anthony Tan highlighted the importance of Thailand as a booming market, noting that a strengthening tourism sector is playing a crucial role in bolstering demand. “It’s like the movie, Everybody Loves Raymond,” Tan remarked. “This one’s Everybody Loves Thailand.” As travel activity picks up, Grab has seen a significant increase in its Thai operations, especially within the ride-hailing and delivery sectors.

In light of its strong Q3 performance, Grab raised its full-year revenue projection to between $2.76 billion and $2.78 billion, slightly above its previous estimate. Adjusted EBITDA expectations have also been lifted to between $308 million and $313 million, up from the $250 million to $270 million initially forecasted. This quarter, Grab recorded a net profit of $15 million, a turnaround from a loss of $99 million in the previous year. This is only the second time in Grab’s history that it has achieved a quarterly net profit, the first being in late 2023.

Grab’s improved profitability signals the success of its cost-cutting strategies implemented in recent years. Initially, the company invested heavily to grow its market share and fend off competitors, but in response to financial pressures, it shifted its focus to operational efficiency. Steps included implementing salary freezes, reducing incentives, and carefully managing resources. COO Alex Hungate commented on the call that incentives as a percentage of gross merchandise value have trended downward, with the company taking a more selective approach to using incentives to build momentum in specific areas of the business.

Additionally, Grab is looking to artificial intelligence as a tool to further streamline its incentive strategies. AI-driven insights allow Grab to optimize when and where to allocate incentives to foster new app interactions, with a strategy of applying incentives on a short-term basis rather than as a constant expense.

Moving into the fourth quarter, Grab is optimistic, reporting strong demand growth in October and November, largely driven by Thailand’s thriving tourism sector. As Grab continues its pivot towards sustainable profitability, the company’s future in Southeast Asia looks promising, particularly with Thailand emerging as a key growth market.