Grab Holdings is positioning itself as a leader in the autonomous vehicle (AV) sector, with significant potential savings and strategic partnerships. According to a report by Maybank IBG Research, Grab’s early adoption of AV technology could reduce costs in Singapore to $0.52 per mile by 2030, compared to the rising driver costs of $0.85 per mile. This shift could result in approximately $71 million in annual savings and a 7% net present value (NPV) upside if 20% of its Singapore fleet transitions to driverless vehicles.
Grab’s strategic alliances with companies like A2Z, Motional, and WeRide, along with its Grab Rentals operations, position it as both a technology and fleet enabler. The company’s proactive approach in the AV sector is seen as a significant advantage, particularly in Singapore, where the cost benefits of AVs are more pronounced compared to other regions in Southeast Asia.
Hussaini Saifee, an analyst at Maybank, maintains a “Buy” recommendation for Grab, citing its potential to capitalise on the AV trend. However, the report notes that in emerging ASEAN markets, AVs may remain economically unviable in the medium term.
In conclusion, Grab’s strategic investments and partnerships in the AV sector are expected to drive significant cost savings and enhance its market position, particularly in Singapore. As the company continues to innovate, it is well-placed to benefit from the growing trend towards autonomy in transportation.
“`
