Grab sets 2028 profit target as AI drives next phase of growth

• Grab centres on AI to improve rides, deliveries, and financial services.
• Expands into groceries and fintech, including Stash acquisition.

In early 2026, Grab Holdings Ltd outlined a new direction that puts profit growth ahead of fast expansion. After of focusing on growth through subsidies and market capture, Grab’s leadership now says the company intends to triple its profit by 2028. Grab’s plan comes on the back of its first-ever full-year net profit for 2025, a milestone it reported recently, fourteen years after it was founded. The change from a long period of losses to profitability gives Grab a new base from which it can invest while also tightening its cost structure.

The company’s stated goal is to nearly triple its earnings before interest, tax, depreciation and amortisation (EBITDA) to US$1.5 billion by 2028, up from the previous year’s levels. To do that, Grab has laid out a plan to grow its overall revenue by more than 20% each year over the next three years.

The target puts hard numbers against what was previously a less tangible idea of expansion. The 20% figure is given the competitive pressures in Grab’s markets and slower consumer spending in some Southeast Asian economies.

AI central to Grab’s profit strategy

At the centre of this profit push is artificial intelligence. Grab’s president and chief operating officer, Alex Hungate, told Reuters that AI will be used both to improve internal operations and to power new services for customers and partners.

AI tools are expected to do several things:

• Help optimise core operations in the Grab app, like pricing, dispatching drivers and managing delivery routes.
• Power new user features that make the app more engaging or easier to use.
• Support automated assistants for drivers and merchants.

The change resembles strategies other tech platforms are taking globally, where AI is used as a way to reduce waste and improve how products or services behave. In Grab’s case, that could mean smoother choices for customers and lower operating costs for the company.

Groceries and beyond: Building out services

AI on its own won’t be enough to triple Grab’s profit. The company is also expanding its services beyond ride-hailing and food delivery in two areas:

Online groceries

Grab has been growing its presence in grocery delivery, a category that sees frequent use and can support regular orders. Bringing groceries into the core app boosts the number of transactions users make.

In Malaysia and other Southeast Asian markets, grocery delivery competes with traditional in-store shopping. If Grab can make its ordering experience simpler and quicker than trips to a store, it could become a source of recurring revenue.

Financial products

Grab is also leaning into financial services. It already offers lending, digital wallets, insurance, and bank accounts under its umbrella of services. Using the data from millions of transactions in its platform, the company believes it can underwrite loans or tailor financial products more precisely than some traditional banks.

Grab’s recent acquisition of the US digital investing platform Stash Financial, Inc. reflects this move. That deal gives Grab access to a service with more than a million paying users and over US$5 billion in assets under management. Grab says this expands its fintech reach and gives it a foothold in a market beyond Southeast Asia.

Navigating growth and risks

Grab’s forecasts for 2026 revenue and adjusted EBITDA were lower than some Wall Street expectations, and its stock price fell in response. At the time of reporting, Grab’s shares were down more than 15% for the year, a heavier decline than that of Uber or Lyft in the same period. Analysts from firms like Huatai Securities have pointed out that higher investments in autonomous vehicles and AI could put pressure on profit margins, especially if user growth slows or economic headwinds continue.

Grab’s leadership appears comfortable with balancing investment and profitability. Hungate has said the company’s “first and best use of cash” is reinvesting in Southeast Asia to drive organic growth, though it won’t close the door on selective acquisitions where they make sense.

A mature phase for a growing app

Historically, Grab has expanded by subsidising rides, delivery fees, and driver incentives to build share quickly. That model helped create a large user base but also generated losses. Reaching profitability in 2025 and now setting profit targets for 2028 reflects a different phase for the company.

The choices it makes now, particularly around AI, financial services, and groceries, will be watched closely by investors and competitors. If Grab can sustain strong revenue growth and improve margins, plus expand its platform’s usefulness, it could redefine how multi-service apps operate in large, emerging markets.

But if revenue growth slows or operational costs rise faster than planned, the pressure to hit those profit targets could grow. Based on Grab’s own reporting and public statements, this strategy represents a change from fast-growing startup to a company that also focuses on earning money reliably.

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