Grab CEO: ‘We have enough money to live even though the recession lasts up to 3 years’

Tram Ho

The ride-hailing giant in Southeast Asia, Grab, has seen its transportation business heavily hit by the outbreak of Covid-19. However, CEO Anthony Tan predicts that his company will have enough money to overcome this difficult period.

“In some countries, the total value of sales of goods and services sold on our platforms (GMV) has dropped by a 2-digit rate,” CEO Tan admitted.

CEO Anthony Tan.

However, he explained that thanks to a diverse business model – including food and food delivery, Grab has helped ease the impact of the disease. Grab also immediately adapted to a new environment by expanding several non-transportation segments to meet growing demand and find ways to ensure drivers across the platform. The foundation still has income.

In fact, the increase in demand for transportation services does not completely offset the impact of the transportation business, but CEO Tan is optimistic about the future.

“Looking ahead, I know that transportation is a necessary mass service so we believe it will recover strongly when the blockade orders are lifted.”

Grab currently operates in 339 cities in 8 Asian countries including Singapore, Vietnam and Indonesia.

All of these countries are implementing measures to distance themselves from society or blockade some to limit the spread of disease. The increasing number of people at home in recent months has led to a sharp decline in travel demand.

Globally, more than 2 million people with Covid-19 and the International Monetary Fund make predictions about the bleak future of the economy, possibly worse than the Great Depression.

That obviously affects the incomes of many drivers, especially those who are unfortunately infected. That’s why Grab has invested nearly $ 40 million to provide financial support across the region and offer additional support measures in places like Singapore.

When asked about the company’s overall financial situation, he explained that most of Grab’s costs are variable and that it will decrease as demand decreases.

“Thanks to the strong potential investors of the company, we are fortunate enough to have enough liquidity to overcome this problem even if the recession lasts 12 or 36 months,” CEO Tan said.

Grab CEO is referring to investors such as Softbank, Singapore-based foreign investment fund Temasek Holdings and Didi Chuxing. To date, the company has raised US $ 9.9 billion.

Share the news now

Source : Genk