Grab Holdings Limited, a leading ride-hailing and delivery platform in Southeast Asia, is making a significant investment in electric vehicles (EVs) in Indonesia. The company plans to add over 1,000 EVs to its fleet, primarily sourced from Chinese automaker BYD Co. This expansion marks a major step forward in Grab’s commitment to sustainability and reducing its environmental footprint.
The new EVs will join Grab’s existing fleet of more than 10,000 electric two- and four-wheel vehicles in Indonesia. This significant investment in EVs is part of Grab’s broader strategy to introduce more environmentally friendly cars to its ride-hailing service. In 2024, Grab announced plans to introduce BYD’s M6 multipurpose vehicle to its fleet.
This move follows a similar partnership between Uber Technologies, Inc. and BYD. In July, the two companies forged a multi-year agreement to add 100,000 BYD EVs to Uber’s global platform. Recently, Uber CEO Dara Khosrowshahi visited BYD’s headquarters in China to further solidify the partnership.
Indonesia’s automotive market has traditionally been dominated by Japanese automakers, with a market share exceeding 90%. However, BYD is actively preparing to establish a manufacturing presence in Indonesia, signaling a shift in the automotive landscape.
Grab’s financial performance in the second quarter of 2024 reflects its commitment to growth and innovation. The company reported a 17% increase in topline revenue to $664 million, with mobility revenue growing by 19% to $247 million. Grab’s monthly transacting users (MTUs) also saw a 17% year-on-year increase, reaching 40.9 million.
Grab has been actively pursuing initiatives to drive growth and enhance user experience. The company has partnered with OpenAI, the creator of ChatGPT, to integrate generative AI into its app, improving navigation for visually impaired and elderly users. Grab has also expanded into the restaurant booking sector by acquiring Chope.
Despite its growth initiatives, Grab Holdings stock has experienced a decline of 15% in the past 12 months, currently trading at $3.19. In contrast, Uber, with a market cap of $150 billion, has seen a significant increase in its stock value, gaining over 58%.
