Grab CEO says coronavirus ‘single biggest crisis’ in company’s history
- Anthony Tan, co-founder and chief executive of Grab, plans to make ‘necessary operational adjustments’ to weather the crisis
- Southeast Asia’s most valuable start-up has been expanding beyond ride-hailing into food delivery and financial services
Grab chief executive Anthony Tan said the coronavirus is creating significant challenges for the Southeast Asian ride-hailing start-up that will require “tough decisions” about cutting costs and managing capital.
“Covid-19 is the single biggest crisis to affect Grab in the eight years of our existence,” Tan said in a message to investors and partners on Monday. “It has had an unprecedented impact on our operations, our business and the livelihoods of our partners.”
The Singapore-based company is the most valuable start-up in Southeast Asia, as it has expanded beyond ride-hailing into food delivery and other services. In February, Grab raised more than US$850 million to fund its push into financial services in the region.
But demand for ride-hailing services has collapsed, as many cities across Southeast Asia are on lockdown.
Grab has been trying to offset some of that shortfall with food delivery, which is experiencing a surge in demand as people stay at home.
“There will be tough decisions and trade-offs to make, as we continue to evaluate its impact on our business,” Tan said. “We will right-size our costs, manage our capital efficiently and make the necessary operational adjustments in order to weather the storm and carve out a path to profitability.”