"Aside from reducing incentives, Grab is improving its algorithm to enhance driver efficiencies while introducing affordable pricing for meals and tiered pricing for food deliveries, which should grow its order density and further improve unit economics," he adds.
Analysts at CGS-CIMB, Citi and Maybank Securities are positive on Grab after the company announced above expectations revenue for its 4QFY2022 ended December.
Maybank analyst Kelvin Tan has upgraded Grab to "buy" with a higher target price of US$3.80 from US$3.40 previously, citing its potential to return to profit sooner than expected amid eased competition and confluence of drivers.
