Core Insights - The investment landscape for autonomous vehicles is becoming more favorable for smaller companies, exemplified by Vay's $60 million investment from Grab, with potential for an additional $350 million based on performance milestones [1][2][3] Company Overview - Vay is a Berlin-based startup that utilizes technology and human operators to remotely drive rental cars, currently operational in Las Vegas and planning to expand in the U.S. [2][3] - Grab, a Singaporean tech company, is investing in Vay to support its growth, despite not operating in the U.S. market [4] Investment Details - The initial investment from Grab is $60 million, with the possibility of an additional $350 million contingent on Vay achieving specific milestones in the U.S. [1][3] - Milestones include the number of U.S. cities covered, regulatory approvals, and overall consumer revenue [3] Market Context - The U.S. market is experiencing increased competition in remote driving services, with companies like Waymo expanding their robotaxi services [3] - Vay's service is positioned as a cost-effective alternative to ride-hailing, costing about half the price due to its hybrid approach [5] Strategic Synergies - Both companies are exploring synergies, particularly in Southeast Asia, where Grab's super-app offers a wide range of services [6] - Grab has also invested in other autonomous driving tech startups, indicating a broader strategy to enhance its mobility offerings [7]

Financial Data and Key Metrics Changes - Monthly transacting users increased by nearly 6 million year-over-year to 48 million, contributing to a 24% year-on-year increase in on-demand GMV, or 20% on a constant currency basis [4] - Group adjusted EBITDA rose 51% year-on-year to a record $136 million, marking the 15th consecutive quarter of sequential profitability improvement [4] - Adjusted free cash flow improved by $185 million year-on-year to $283 million on a trailing 12-month basis [4] Business Line Data and Key Metrics Changes - The mobility segment grew at a rate of 20%, while the delivery segment saw a growth rate of 26% [12] - Financial services revenue grew by 40%, with the loan book reaching an all-time high [12] Market Data and Key Metrics Changes - The company expects its financial services loan portfolio to exceed $1 billion by the end of 2025 [6] - The company is experiencing strong growth in Indonesia, with significant contributions from both GrabBike and GrabCar Saver users [10][11] Company Strategy and Development Direction - The company is focused on building a resilient, tech-driven platform, emphasizing accessibility, affordability, and reliability [4][5] - The strategy includes leveraging AI to unlock new growth and efficiency opportunities [6] - The company is exploring new business models, including Quick Commerce, to expand its grocery segment [44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to drive sustainable long-term value despite macroeconomic uncertainties [36] - The company is not seeing a broad-based slowdown in consumption and believes its countercyclical strategy is effective [35] - Management expects to exit 2025 at record GMV levels and maintain profitable growth into 2026 [26] Other Important Information - The company is actively investing in autonomous vehicle technology as part of its long-term strategy [46] - The financial services segment is focused on financial inclusion, targeting underbanked and unbanked populations [55] Q&A Session Summary Question: Competitive landscape in Indonesia and growth guidance - Management highlighted strong performance in Indonesia driven by product-led growth strategies and affordability initiatives [10][11] - Guidance was raised due to strong top-line growth and disciplined cost management, with an EBITDA target of $490 million-$500 million for 2025 [12][13] Question: MTU growth demographics and future growth rates - MTU growth was driven by affordability strategies, with significant contributions from saver delivery products [20][21] - Management expects continued growth above mid to high teens into 2026, with a focus on maintaining margins [25][26] Question: Balance sheet and cash usage - The company plans to use its strong cash balance for organic growth investments, selective M&A, and potential shareholder returns [30][34] - Management noted a positive macro environment with signs of tourism recovery and no broad-based consumption slowdown [35] Question: GrabMart growth and grocery business initiatives - GrabMart is growing faster than food delivery, with initiatives like Grab More enhancing cross-selling opportunities [43][44] - The company is experimenting with Quick Commerce models to increase grocery penetration [44] Question: Autonomous vehicle investments - Investments in autonomous technology are strategic, aimed at leading adoption in Southeast Asia while collaborating with regulators [46][47] Question: Financial services growth and risk provisions - The financial services segment is on track to exceed a $1 billion loan book, with a focus on risk management and customer insights [53][55] - Management emphasized the importance of credit models in serving underbanked populations [55][56] Question: Advertising revenue and consumer incentives - Advertising revenue is expected to grow as the company attracts more advertisers, with a focus on maintaining sustainable consumer incentives [61][62] - Management noted a slight increase in driver incentives to maintain service quality amid rising demand [60] Question: Delivery margins and monetization strategies - Delivery margins are expected to improve, with a portfolio approach to managing different delivery products [70][71] - The company is exploring in-store monetization strategies to enhance traffic for food merchants [91]

Financial Data and Key Metrics Changes - The company reported a 24% year-on-year increase in on-demand GMV, reaching a record adjusted EBITDA of $136 million, which is a 51% increase year-on-year [4][5] - Adjusted free cash flow improved by $185 million year-on-year to $283 million on a trailing 12-month basis [4] - The financial services loan portfolio is expected to exceed $1 billion by the end of 2025 [5] Business Line Data and Key Metrics Changes - Monthly transacting users (MTUs) increased by nearly 6 million year-on-year to 48 million, with on-demand transactions growing 27% [4][18] - The mobility segment grew at a rate of 20%, while the delivery segment saw a growth rate of 26% [11] - Financial services revenue grew by 40%, with loan dispersals reaching an annualized rate of $3.5 billion, up 56% year-on-year [27][45] Market Data and Key Metrics Changes - The company continues to perform strongly in Indonesia, with significant growth in both deliveries and mobility, driven by product-led growth strategies [10][11] - The Grab Mart business is growing at one and a half times the rate of food delivery, indicating strong demand across all markets [37] Company Strategy and Development Direction - The company is focused on building a tech-driven platform for long-term resilience, emphasizing affordability, reliability, and accessibility [5] - There is a strong emphasis on product-led innovations to drive user engagement and loyalty, with a focus on cross-selling between services [20][21] - The company is exploring new business models, including Quick Commerce, to expand its grocery segment [38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to maintain profitable growth despite potential macroeconomic challenges, citing a resilient business model [30][31] - The company anticipates strong top-line growth to continue into the fourth quarter, traditionally its strongest quarter [12] - Management highlighted the importance of partnerships with governments to support small businesses and enhance the ecosystem [32] Other Important Information - The company is committed to maintaining a disciplined cost structure, with regional corporate costs increasing only 8% year-on-year [11] - The advertising segment is expected to be a key driver of margin growth in the long run, with a 15% year-on-year increase in active advertisers [54][55] Q&A Session Summary Question: Competitive landscape in Indonesia and growth performance - Management noted strong performance in Indonesia, driven by affordability strategies and product-led growth, with significant increases in MTUs and delivery GMV [10][11] Question: Update on guidance and growth estimates by segment - Management raised EBITDA guidance to $490 million-$500 million for the full year 2025, citing strong top-line growth across segments [12] Question: MTU growth demographics and user profile changes - MTU growth was driven by saver delivery products, with a notable increase in younger users and those from lower-tier cities [19] Question: Growth rate expectations for Q4 and 2026 - Management expects continued strong growth rates, with a focus on sustainable growth and margin improvement [22] Question: Capital allocation and use of cash - The company plans to invest in organic growth, selective M&A, and return excess capital to shareholders [27][29] Question: Financial services segment and risk provisions - The financial services segment is experiencing strong growth, with a focus on financial inclusion for underbanked populations [45][48] Question: Advertising revenue growth and sustainability of consumer incentives - Management indicated that consumer incentives are expected to stabilize, while advertising revenue is projected to grow significantly [52][54] Question: Delivery margins and geographic differences - Management confirmed that delivery margins are improving, with a focus on achieving steady state margins across different markets [61] Question: In-store monetization strategies - The company is exploring in-store monetization through partnerships with offline retailers, enhancing the overall customer experience [77]