Q1 2026 Grab Holdings Ltd Earnings Call

May 5, 2026

Speaker #1: Good day, everyone, and welcome to Grab's first quarter 2026 earnings call. I'm Douglas Eu, Director, Investor Relations and Strategic Finance at Grab, and joining me today are Anthony Tan, Chief Executive Officer; Alex Hungate, President and Chief Operating Officer; and Peter Oei, Chief Financial Officer.

Speaker #1: During this call, we will be making forward-looking statements regarding future events, including our business and financial performance. These statements are based on our current beliefs and expectations.

Speaker #1: Actual results could differ materially due to a number of risks and uncertainties as described on this earnings call, in the earnings release, and in our Form 20-F and other filings with the SEC.

Speaker #1: We do not undertake any duty to update any forward-looking statements. We will also be discussing non-IFRS financial measures on this call. These measures supplement, but do not replace, IFRS financial measures.

Speaker #1: Please refer to the earnings materials for reconciliation of non-IFRS to IFRS financial measures for more information. Please refer to our earnings press release, remarks, and supplemental presentation available on our IR website.

Speaker #1: For today's call, Anthony will deliver opening remarks, after which we will open the floor to questions. As a reminder, we are accepting questions via our email at investor.relations@grab.com.

Speaker #1: Do submit your questions ahead of time, and we will add them to the Q&A queue. And with that, I'll hand it over to Anthony.

Speaker #2: Great, thanks, Doug. Good day, everyone, and thank you for joining us. We set out to start 2026 strongly, and we delivered. Against the backdrop of our seasonally softest quarter, due to Ramadan and Chinese New Year, on-demand GMV growth accelerated to 24% year on year, while group MTUs increased to 52 million.

Speaker #2: In financial services, loan disbursals grew 67% to exceed $1 billion for the first time, and we remain on track for our financial services segment to achieve adjusted EBITDA breakeven in the second half of this year.

Speaker #2: We also delivered our 17th consecutive quarter of adjusted EBITDA growth, expanding our trailing 12-month adjusted free cash flow to $489 million. These results demonstrate the compounding nature of our strategy, which is increasingly being accelerated by our investments in AI.

Speaker #2: What truly sets our AI capabilities apart, however, is the proprietary data foundation we've spent the last 14 years building to power them. Today, Grab operates as a system of record for local commerce across Southeast Asia.

Speaker #2: We capture highly localized, real-time data on how over 50 million users and partners interact across eight markets. Over the years, this has generated a proprietary dataset of over 20 billion transactions.

Speaker #2: We feed these multimodal signals, from hyperlocal mapping to in-store payment terminals, into our AI Grab Intelligence layer to optimize our marketplace efficiency, from dynamic pricing to last-mile routing.

Speaker #2: Crucially, we pair this data advantage with our massive physical fulfillment network. That closed-loop system, or ecosystem, is our biggest competitive moat, which is why our AI investments translate directly into measurable financial outcomes.

Speaker #2: We are already seeing significant, tangible returns on these initiatives. For instance, I'm pleased to share that Driver Partners who adopted Turbo—our AI-powered driving mode in the Grab Driver app to optimize driver earnings and efficiency—saw a 23% uplift in earnings per online hour compared to Driver Partners who have not adopted the feature.

Speaker #2: This has contributed to mobility transactions growth outpacing mobility GMV growth, with transactions up 28% year on year. Within over a year of launch, our merchant AI assistant, Mai, has been adopted by approximately half of our active single-store merchant base, driving a 15% uplift in GMV for engaged users.

Speaker #2: This deepened engagement directly supports our ability to improve monetization, with average advertiser spend growing 44% year-on-year as merchants see increasing measurable returns.

Speaker #2: Following the launch of 13 new AI-powered experiences at GrabX this year, we are turning external AI interfaces into our newest growth engines. By acting as the essential fulfillment layer for Southeast Asia, we ensure that whenever customers use AI agents to navigate their day, those interactions act as top-of-funnel leads that drive transactions directly back to Grab.

Speaker #2: We're also making steady progress on autonomous vehicles. In April, we successfully transitioned our private trials to full-paying public operations. Our AIR service, deployed in partnership with WeRide, is the first autonomous passenger service ever deployed within a Southeast Asian residential estate.

Speaker #2: The fleet has clocked over 40,000 kilometers and has safely served several thousand public rides. That said, the adoption of AVs in Southeast Asia remains nascent.

Speaker #2: We see governments and regulators taking a measured approach in implementing AVs, which we believe is the right approach for our region. We will continue to incorporate AVs in our platform at a pace that reflects the trust communities place in us and our emphasis on customer safety.

Speaker #2: To be clear, we do not expect anyone to be able to deploy impactful disruption to our human driver network in the near future. Yet, we remain firm believers in the technology.

Douglas Eu: Good day, everyone. Welcome to Grab's Q1 2026 Earnings Call. I'm Douglas Eu, Director, Investor Relations and Strategic Finance at Grab. Joining me today are Anthony Tan, Chief Executive Officer, Alex Hungate, President and Chief Operating Officer, and Peter Oey, Chief Financial Officer. During this call, we will be making forward-looking statements regarding future events, including our business and financial performance. These statements are based on our current beliefs and expectations. Actual results could differ materially due to a number of risks and uncertainties as described on this earnings call, in the earnings release, and our Form 20-F and other filings with the SEC. We do not undertake any duty to update any forward-looking statements. We will also be discussing non-IFRS financial measures on this call. These measures supplement but do not replace IFRS financial measures.

Speaker #2: This has shaped how we have made small investments ahead of the curve to forge international partnerships, while doubling down on ensuring our Singapore pilots succeed.

Speaker #2: We intend to be the most experienced local hybrid avian-human operator in Southeast Asia. One able to amplify the efforts of any AV software player in bringing the smoothest, safest, and most cost-efficient service when we eventually scale up in partnership with governments in this region.

Speaker #2: Now, beyond AI and AVs, the structural health of our driver-partner supply base remains our top priority. When fuel price volatility emerged in early March, we acted decisively to protect partner livelihoods by deploying targeted fuel rebates and proactively engaging with regulators across our markets.

Douglas Eu: Please refer to the earnings materials for a reconciliation of non-IFRS to IFRS financial measures. For more information, please refer to our earnings press release, remarks, and supplemental presentation available on our IR website. For today's call, Anthony will deliver opening remarks, after which we will open the floor to questions. As a reminder, we are accepting questions via our email at investor.relations@grab.com. Do submit your questions ahead of time and we will add them to the Q&A queue. With that, I'll hand it over to Anthony.

Speaker #2: In April, we also launched the Digital Earnings Tracker to provide driver-partners with greater transparency over their earnings. In 2025, partners earned over $15 billion on our platform, up 19% year on year.

Anthony Tan: Great. Thanks, Doug. Good day, everyone, thank you for joining us. We set out to start 2026 strongly. We delivered. Against the backdrop of our seasonally softest quarter due to Ramadan and Chinese New Year, on-demand GMV growth accelerated to 24% year on year, while group MTUs increased to 52 million. In financial services, loan dispersals grew 67% to exceed $1 billion for the first time. We remain on track for our financial services segment to achieve adjusted EBITDA breakeven in H2 of this year. We also delivered our 17th consecutive quarter of adjusted EBITDA growth, expanding our trailing twelve-month adjusted free cash flow to $489 million. These results demonstrate the compounding nature of our strategy, which is increasingly being accelerated by our investments in AI.

Speaker #2: Looking ahead, our record start to the year is a testament to the resilience of our ecosystem. Whether we are leveraging AI to drive greater marketplace efficiencies today or piloting the autonomous networks of tomorrow, our focus remains on compounding sustainable growth and outserving our communities.

Speaker #2: Despite macroeconomic uncertainties, particularly regarding inflation and fuel prices, our platform is structurally stronger than ever. Against this backdrop, we reiterate our 2026 full-year guidance.

Speaker #2: Group revenue of $4.04 billion to $4.10 billion, and adjusted EBITDA of $700 to $720 million. Our first quarter provides us with a strong foundation.

Speaker #2: In March, we announced that we are advancing our buyback mandate with a $400 million accelerated share repurchase program. This is a reflection of our conviction in Grab's long-term value at these dislocated prices.

Anthony Tan: What truly sets our AI capabilities apart, however, is the proprietary data foundation we've spent the last 14 years building to power them. Today, Grab operates as a system of record for local commerce across Southeast Asia. We capture highly localized real-time data on how over 50 million users and partners interact across 8 markets. Over the years, this has generated a proprietary data set of over 20 billion transactions. We feed these multimodal signals from hyperlocal mapping to in-store payment terminals into our AI Grab Intelligence layer to optimize our marketplace efficiency from dynamic pricing to last mile routing. Crucially, we pair this data advantage with our massive physical fulfillment network. That closed loop system or ecosystem is our biggest competitive mode, which is why our AI investments translate directly into measurable financial outcomes. We are already seeing significant tangible returns on these initiatives.

Anthony Tan: What truly sets our AI capabilities apart, however, is the proprietary data foundation we've spent the last 14 years building to power them. Today, Grab operates as a system of record for local commerce across Southeast Asia. We capture highly localized real-time data on how over 50 million users and partners interact across eight markets. Over the years, this has generated a proprietary data set of over 20 billion transactions. We feed these multimodal signals from hyperlocal mapping to in-store payment terminals into our AI Grab Intelligence layer to optimize our marketplace efficiency from dynamic pricing to last mile routing. Crucially, we pair this data advantage with our massive physical fulfillment network. That closed loop system or ecosystem is our biggest competitive mode, which is why our AI investments translate directly into measurable financial outcomes. We are already seeing significant tangible returns on these initiatives.

Speaker #2: Thank you so much. Let's open it up for questions.

Speaker #1: Thank you, Anthony. We will now transition to the Q&A session. As a reminder, for those of you who would like to ask a question, please submit an email to our investor relations inbox and we'll take them in the queue as well.

Speaker #1: Our first and most asked question comes from several analysts: Divya from Morgan Stanley, Bennu from Bernstein, and Push from HSBC. It is with regard to the fuel crisis. So, the question is: What’s the impact of the ongoing Middle East conflict and higher fuel prices across your various operating countries?

Speaker #1: Has it started to impact business performance in the second quarter? And can you quantify the impact? And what is our strategy for managing long-term fuel risks?

Speaker #1: So this is a question for Alex.

Speaker #3: Thanks, Divya, Bennu, Push. This is a critical topic. And as I said in my prepared remarks, Q1 results actually give us a good, solid foundation entering the year.

Speaker #3: And as you saw from the slide pack, the demand trends in April have remained resilient. Our mobility business in April has seen weekly average transaction volumes sustain at plus 32% year-on-year.

Speaker #3: And our deliveries business continues to see record-high daily transacting users in April. So it's a good start to the year. The business, in fact, is in a structurally more resilient position today than it has been through our history.

Anthony Tan: For instance, I'm pleased to share driver partners who adopted Turbo, our AI-powered driving mode in our Grab Driver app to optimize driver earnings and efficiency, saw a 23% uplift in earnings per online hour compared to driver partners who have not adopted the feature. This has contributed to mobility transactions growth outpacing mobility GMV growth with transactions up 28% year on year. Within over a year of launch, our Merchant AI Assistant, MAI, has been adopted by approximately half of our active single-store merchant base, driving a 15% uplift in GMV for engaged users. This deepened engagement directly supports our ability to improve monetization, with average advertiser spend growing 44% year on year as merchants see increasing measurable returns. Following the launch of 13 new AI-powered experiences at GrabX this year, we are turning external AI interfaces into our newest growth engines.

Speaker #3: Product innovations we have made have really targeted affordability and reliability. Group orders, for example, has GMV up 74% year on year. And we launched group rides at GrabX last month, which is a similar concept for sharing rides to reduce pricing for individual consumers.

Speaker #3: And that's now available across all six of our core markets. Grab Unlimited, of course, is very good value for high-frequency customers, and it continues to account for a third of our deliveries GMV.

Speaker #3: So all of these are highly affordable products, which keep the demand strong even when consumers are stretched. We're monitoring the fuel situation extremely closely.

Speaker #3: And, of course, we will not hesitate to act further if needed. In the medium term, we are committed to accelerating the EV transition to reduce our driver-partners' exposure to fuel price volatility.

Speaker #3: So for example, in Thailand and the Philippines, we have a drive-to-own program that connects our drivers with OEMs like BYD and GAC, where we have deals for up to 70,000 vehicles available across six markets.

Anthony Tan: By acting as the essential fulfillment layer for Southeast Asia, we ensure that whenever customers use AI agents to navigate their day, those interactions act as top-of-funnel leads that drive transactions directly back to Grab. We're also making steady progress on autonomous vehicles. In April, we successfully transitioned our private trial to full paying public operations. Our Ai.R service, deployed in partnership with WeRide, is the first autonomous passenger service ever deployed within a Southeast Asian residential estate. The fleet has clocked over 40,000 km and has safely served several thousand public rides. That said, the adoption of AVs in Southeast Asia remains nascent. We see governments and regulators taking a measured approach in implementing AVs, which we believe is the right approach for our region.

Speaker #3: And with access to financing so they can own those more easily. In Vietnam, we've secured preferential charging rates also through our charging network partners, eBoost and ChargePlus.

Speaker #3: Which helps our drivers in the transition also. And finally, in Thailand, I am pleased to say that our total fleet supply has crossed 30,000 EVs on the platform.

Speaker #3: And demand for those from consumers has also been strong where they can select that EV option. And that demand has grown by over 35% year on year.

Speaker #3: So, this fuel crisis has become an opportunity in the sense that it helps us to accelerate that EV transition.

Speaker #1: Thank you, Alex. So, we'll move on to the next question. The next question is on Financial Services, and it comes from Joey of Macquarie and Bennu of Bernstein.

Anthony Tan: We will continue to incorporate AVs in our platform at a pace that reflects the trust communities place in us and our emphasis on customer safety. To be clear, we do not expect anyone to be able to deploy impactful disruption to our human driver network in the near future. Yet we remain firm believers in the technology. This has shaped how we have made small investments ahead of the curve to forge international partnerships while doubling down on ensuring our Singapore pilots succeed. We intend to be the most experienced local hybrid AV and human operator in Southeast Asia. One able to amplify the efforts of any AV software player in bringing the smoothest, safest, and most cost-efficient service when we eventually scale up in partnership with governments in this region. Now, beyond AI and AVs, the structural health of our driver-partner supply base remains our top priority.

Speaker #1: So for the financial services segment, your loan portfolio showed modest quarter-to-quarter growth. But there was a step improvement to your segment-adjusted EBITDA. Could you describe the factors that led to these improvements?

Speaker #1: And what can we expect in the coming quarters? And how do you intend to drive that? So this is a question for Alex again.

Speaker #3: Thanks, Joey. Bennu, yes, you're right. Strong EBITDA improvement in Financial Services, both quarter-on-quarter and year-on-year. So that is the operating leverage that we've been talking about, starting to come through very strongly now as we scale up our loan portfolio.

Speaker #3: Revenue growth accelerated 43% year on year, and 38% on a constant currency basis. More than a third of that incremental revenue dropped straight to the bottom line for Financial Services, demonstrating that operating leverage that we've been speaking about.

Speaker #3: The loan book growth is strong year on year. And importantly, the credit quality is improving alongside that. So, loan disbursals grew 67% year on year to over $1 billion.

Speaker #3: But the growth was modest. You're right. This quarter, because of seasonal factors. And that's a normal factor for first quarter. The ECLs as a percentage of our gross loan portfolio has improved year on year, though.

Anthony Tan: When fuel price volatility emerged in early March, we acted decisively to protect partner livelihoods by deploying targeted fuel rebates and proactively engage with re-regulators across our markets. In April, we also launched the digital earnings tracker to provide driver-partners with greater transparency over their earnings. In 2025, partners earned over $15 billion on our platform, up 19% year on year. Looking ahead, our record start to the year is a testament to the resilience of our ecosystem. Whether we are leveraging AI to drive greater marketplace efficiencies today or piloting the autonomous networks of tomorrow, our focus remains on compounding sustainable growth and out-serving our communities. Despite macroeconomic uncertainties, particularly regarding inflation and fuel prices, our platform is structurally stronger than ever. Against that backdrop, we reiterate our 2026 full-year guidance.

Speaker #3: And that does show, I think, the improving quality of our credit models. We've been proactive on risk management, though, so we've been tightening for some sectors.

Speaker #3: And in other sectors, where conventional lenders have stepped away, we've seen more opportunity. In Q1, we applied those additional ECL overlays to account for that macroeconomic uncertainty.

Speaker #3: With that selective tightening also part of our change in the risk appetite. Looking ahead, we do have some experience, of course, in managing these kinds of shocks to the macroeconomic situation.

Speaker #3: So our underwriting models have already been through a similar fuel price shock to what we saw at the start of the Ukraine conflict—not to mention COVID as well.

Speaker #3: And in both instances, our credit quality remained within our risk appetite throughout. So we continue to monitor the portfolio performance super carefully. We aim to generate healthy returns on a risk-adjusted basis for our loan portfolio.

Anthony Tan: Group revenue of $4.04 billion to $4.1 billion and adjusted EBITDA of $700 million to $720 million. Our first quarter provides us with a strong foundation. In March, we announced that we are advancing our buyback mandate with a $400 million accelerated share repurchase program. This is a reflection of our conviction in Grab's long-term value at these dislocated prices. Thank you so much. Let's open it up for questions.

Speaker #3: And we are reiterating our second-half 2026 break-even target for Financial Services.

Speaker #1: Thank you, Alex. So this next question is also another highly asked question, and it comes from several analysts: Alicia from Citi, Divya from Morgan Stanley, Joey from Macquarie, Joan from Barclays, and Piotr from HSBC.

Speaker #1: And so, regarding recent news in Indonesia—so, on Indonesia's cap on rider commissions to 8%, can you clarify if that is applicable to four wheels?

Speaker #1: What are the levers available to cushion the key negative impact from lower rider commission? What's the likely impact on profitability due to the proposed change?

Douglas Eu: Thank you, Anthony. We will now transition to the Q&A session. As a reminder, for those of you who would like to ask a question, please submit an email to our investor relations inbox, and we'll take them in the queue as well. Our first and most asked question comes from the line of several analysts, Divya of Morgan Stanley, Benu of Bernstein, and Piyush of HSBC. It's with regard to the fuel crisis. The question is, what's the impact of the ongoing Middle East conflict and higher fuel prices across your various operating countries? Has it started to impact this year's performance in Q2, and can you quantify the impact, and what is our strategy to manage long-term fuel risks? This is a question for Alex.

Speaker #1: And what's the impact on the delivery segment, if any, from the proposed change? And if you can help to quantify it. So this is a very long question as well, also a question for Alex.

Speaker #3: OK, thank you. To all of you, all five of you, for the question. Let me see if I can cover section by section. OK, so it does appear that the immediate regulatory exposure is highly specific.

Speaker #3: So the recent announcements have explicitly focused on overall drivers, OJEC online drivers. Who are our two-wheel ride-hailing partners? So, two-wheel ride-hailing partners. The four-wheel drivers earn well above the minimum wage.

Alex Hungate: Thanks, Divya, Venu, Piyush. This is a critical topic. As I said in my prepared remarks, Q1 results actually give us a good solid foundation entering the year. As you saw from the slide pack, the demand trends in April have remained resilient. Our mobility business in April has seen weekly average transaction volumes sustained at +32% year-on-year, and our deliveries business continues to see record high daily transacting users in April. It's a good start to the year. The business, in fact, is in a structurally more resilient position today than it has been through our history. Product innovations we have made have really targeted affordability and reliability.

Speaker #3: And so we believe that they're less of a concern for government and regulators in Indonesia. That said, of course, we're engaging very proactively with the relevant ministries.

Speaker #3: And we try to seek absolute clarity on the technical aspects of how the decree will be implemented. It's essential, we believe, that together with regulators, we shape a balanced implementation of these decrees.

Speaker #3: So that our Indonesian mobility marketplace remains healthy, and that driver partners' earnings remain well supported. It's worth noting, as I mentioned in my prepared remarks, that two-wheel mobility—so the overall drivers that the decree referred to in Indonesia—is less than 6% of our total mobility GMV.

Alex Hungate: Group orders, for example, has GMV up 74% year on year. We launched Group Rides at GrabX last month, which is a similar concept for sharing rides to reduce pricing for individual consumers, and that's now available across all six of our core markets. GrabUnlimited, of course, is very good value for high-frequency customers, and it continues to account for a third of our deliveries GMV. All of these are highly affordable products which keep the demand strong even when consumers are stretched. We're monitoring the fuel situation extremely closely, and of course, we will not hesitate to act further if needed. In the medium term, we are committed to accelerate the EV transition to reduce our driver partners' exposure to fuel price volatility.

Speaker #3: So the overall drivers in Singapore represent less than 6% of our total mobility GMV. So we are therefore reiterating our expectations for mobility margins to stabilize within the historical range, and not to go outside of that range.

Speaker #1: Thank you, Alex. So we'll move on to a related topic as well. This comes from the line of Bennu from Bernstein, Sachin of DBS, and Alicia of Citi.

Speaker #1: In relation to the 8% commission cap in Indonesia, is the likelihood of consolidation now looking higher in Indonesia as well? Does the shift in policy in Indonesia change your near-to-medium-term investment or resource and capital allocation priorities?

Speaker #1: So this is a question for Peter.

Alex Hungate: For example, in Thailand and Philippines, we have a drive-to-own program that connects our drivers with OEMs like BYD and GAC, where we have deals of up to 70,000 vehicles available across six markets, with accessing to financing so they can own those more easily. In Vietnam, we've secured preferential charging rates also through our charging network partners, EBOOST and Charge+, which helps our drivers in the transition also. Finally, in Thailand, I am pleased to say that our total fleet supply has crossed 30,000 EVs on the platform, and demand for those from consumers is also strong, where they can select that EV option, and that's demand has grown by over 35% year-on-year. This fuel crisis has become an opportunity in the sense that it helps us to accelerate that EV transition.

Speaker #4: Sure, yeah. Look, I want to comment on specific M&A speculation. But I'll speak to how we view our position in this evolving landscape. With any M&A, we always take into account the regulatory environment.

Speaker #4: It's really critical, and we want to work with the relevant agencies there also. Because there are always synergies and dyssynergies that we could accrue from any transactions.

Speaker #4: And as I've always spoken in many, many quarterly earnings, we always have a very high bar when it comes to M&A transactions itself. When it’s specifically to Indonesia, and also just our M&A portfolio, we’ve always been taking a very diversified approach.

Speaker #4: And you see that in the lines of our businesses. And you see that our product continues to expand also broadly. We're entering our ninth market, which also shows our diversification, also in terms of geographies.

Speaker #4: So the way we always position the lens that we take is diversification, and that's really important. Specifically, though, for Indonesia—as Alex just mentioned—it's really important that we have a very constructive and very healthy ecosystem.

Douglas Eu: Thank you, Alex. Move on to the next question. The next question is on financial services and comes from Joey of Macquarie and Venu of Bernstein. For the Financial Services segment, your loan portfolio showed modest quarter-on-quarter growth, but there was a step improvement to your segment-adjusted EBITDA. Could you describe the factors that led to these improvements, and what can we expect in coming quarters, and how do you intend to drive that? This is a question for Alex again.

Speaker #4: Both for our driver-partners, consumers, and also for our restaurants. So, specifically to Indonesia, our strategy for Indonesia remains fundamentally unchanged. Despite what we've seen over the weekend, and also the way we approach the strategies in Indonesia, our Indonesian mobility business continues to grow double digits year over year.

Alex Hungate: Thanks, Joey, Venu. You're right. Strong EBITDA improvement in financial services both quarter-on-quarter and year-on-year. That is the operating leverage that we've been talking about starting to come through very strongly now as we scale up our loan portfolio. Revenue growth accelerated 43% year-on-year and 38% on a constant currency basis. More than a third of that incremental revenue dropped straight to the bottom line for financial services, demonstrating that operating leverage that we've been speaking about. The loan book growth is strong year-on-year. Importantly, the credit quality is improving alongside that. Loan dispersals grew 67% year-on-year to over $1 billion. The growth was modest, you're right, this quarter because of seasonal factors, and that's a normal factor for Q1.

Speaker #4: It remains very, very stable quarter on quarter, in spite of the seasonal headwinds. And as I'm always reiterating, I'm very highly disciplined in our capital allocation.

Speaker #4: So when we evaluate any strategic opportunities, it's strictly through the lens of long-term shareholder value, and also how we can diversify our Grab business.

Speaker #1: Thank you, Peter. So the next question comes from Alicia of Citi and Wei of Bizuho. So the question topic now moves back to the fuel crisis as well.

Speaker #1: Given the step-up in partner incentives to offset elevated fuel costs, how is this impacting demand elasticity and translated into revisions to your near-term financial outlook for Mobility?

Alex Hungate: The ECL as a percentage of our gross loan portfolio has improved year on year, though, and that does show, I think, the improving quality of our credit models. We've been proactive on risk management, though, so we've been tightening for some sectors. In other sectors where conventional lenders have stepped away, we've seen more opportunity. In Q1, we applied those additional ECL overlays to account for that macroeconomic uncertainty, with that selective tightening also part of our change in the, in the risk appetite. Looking ahead, we do have some experience, of course, of managing these kinds of shocks to the macroeconomic situation. Our underwriting models have already been through the similar fuel price shock that we saw at the start of the Ukraine conflict, not to mention COVID as well.

Speaker #1: Should we expect levels to remain elevated, or do you see offsetting levers such as EV adoption and cross-border rides that could bring incentives back down in the second half?

Speaker #1: And support the sequential EBITDA ramp-up implied by your four-year $700 to $720 million guidance?

Speaker #3: Thanks, Alicia, Wei. Great question. So yes, Q1, you can see that driver incentives were elevated. Two specific drivers, though. One is, and most importantly, was the confluence of Lunar New Year and Ramadan within the first quarter.

Speaker #3: Both in the first quarter of this year, creating acute supply pressures, as usual, during those two festive periods. So, it's deliberate. The second factor was, of course, the fuel crisis.

Speaker #3: So towards the end of the quarter, during March, we started a deliberate decision to support our driver-partners with the elevated fuel prices across some countries in the region.

Alex Hungate: In both instances, our credit quality remained within our risk appetite throughout. We continue to monitor the portfolio performance super carefully. We aim to generate healthy returns on risk-adjusted returns for our loan portfolio, and we are reiterating our H2 2026 break-even target for financial services.

Speaker #3: So, as we move into the second quarter, of course, the festive-driven incentive pressure normalizes. But fuel does remain an important variable that we're watching very, very closely.

Speaker #3: The targeted earnings support will continue through into the second quarter, but it is no longer with the seasonal impact. We expect this first quarter to be a peak in the driver incentives.

Douglas Eu: Thank you, Alex. This next question is also another highly asked question, and it comes from several analysts. From Alicia Yap from Citi, Divya from Morgan Stanley, Chi-Wei of Macquarie, Jiong Shao from Barclays, and Piyush of HSBC. Regarding recent news in Indonesia. In Indonesia's cap on rider commissions to 8%, can you clarify if that is applicable to Four Wheels? What are the levers available to cushion the key negative impact from lower rider commission? What's the likely impact of profitability due to the proposed change? What's the impact in the delivery segment, if any, from the proposed change? If you can help to quantify it. This is a very long question. This will pose another question for Alex.

Speaker #3: We are reiterating the full-year guidance, therefore, of $700 to $720 million for adjusted EBITDA. Assuming that peak—and not that it's a run rate, but it's more like a peak.

Speaker #3: But I would say we've got multiple levers available to us, including, if necessary, more emphasis on advertising and financial services monetization to defend the overall margin trajectory for the full year, if those fuel pressures persist through the full year.

Alex Hungate: Okay. Thank you to all of you, all five of you for the question. Let me see if I can cover section by section. Okay. It does appear that the immediate regulatory exposure is highly specific. The recent announcements explicitly focused on Ojol drivers, Ojek online drivers, who are our two-wheel ride-hailing partners. Two-wheel ride-hailing partners, Ojol. The four-wheel drivers earn well above the minimum wage. We believe that they're less of a concern for government and regulators in Indonesia. That said, of course, we're engaging very proactively with the relevant ministries, and we try to seek absolute clarity in the technical aspects of how the decree will be implemented.

Speaker #3: In the medium term, if those elevated fuel prices continue, we would have to pass some more of the costs on to consumers. But of course, we'll do that very judiciously because we want to maintain healthy demand for our driver partners through this difficult time.

Speaker #3: Finally, I think it's worth emphasizing, we saw that the impact of AI marketplace optimization this quarter was very powerful. And we did use it to manage, for example, incentive spend for consumers.

Speaker #3: You can see that the incentive spend for consumers became more efficient during this quarter. And so, going into the full year, we will also have that powerful capability at our disposal to try and manage some of the volatility and incentive spend.

Speaker #1: Thank you, Alex. So, the next question—the topic will now move into AI. This comes from David, Morgan Stanley, and Wei of Mizuho. On AI monetization, are you building toward a merchant and driver SaaS revenue stream that sits outside the current commission rate structure?

Alex Hungate: It's essential, we believe, that together with regulators, we shape a balanced implementation of these, this decree so that our Indonesian mobility marketplace remains healthy and that driver-partners' earnings remain well supported. It's worth noting, as I mentioned in my prepared remarks, that two-wheel mobility, so the Ojol drivers that the decree referred to in Indonesia, is less than 6% of our total mobility GMV. The ODRO drivers in Singapore represent less than 6% of our total mobility GMV. We are therefore reiterating our expectations for mobility margins to stabilize within the historical range and not to go outside of that range.

Speaker #1: Or are these going to remain bundled into the existing take rate? What AI tools are you mainly investing in this quarter? So this is a question for Anthony.

Speaker #4: Thanks so much, David and Wei. Appreciate the question. Look, our approach to tools like Merchant AI and Driver AI Assistant Coach has been to solve everyday problems that our driver and merchant partners face.

Speaker #4: There's no reason why our partners should not have access to these tools that will enable them to grow their customers and earnings. If we get that right—the tools and the partnership right—we build something competitors can't easily replicate.

Douglas Eu: Thank you, Alex. We'll move on to a related topic as well. This comes from the line of Venu from Bernstein, Sachin of Bank of America, and Alicia of Citi. In relation to the 8% commission cap in Indonesia, is the likelihood of consolidation now looking higher in Indonesia as well? Does the shift in policy in Indonesia change your near to medium-term investment or resource and capital allocation priorities? This is a question for Peter.

Speaker #4: And it creates high loyalty, high engagement, which results in them choosing us as their primary platform—not just because of the tech, but because of the trust and, of course, growing earnings for them.

Speaker #4: This has translated into concrete results within our ecosystem. On a year-on-year basis, not only do we see the growth in the number of active merchant partners, but their earnings also grew 12% during the quarter.

Alex Hungate: Sure, yeah. Look, I won't comment on specific M&A speculation. I'll speak to how we view our position in this evolving landscape. With any M&A, we always take into account the regulatory environment. It's really critical, and we wanna work with the relevant agencies there also, because there's always synergies and dis-synergies that we could accrue from any transactions. I've always spoken in many quarterly earnings, we always have a very high bar when it comes to M&A transaction itself. When specifically to Indonesia, and also just our M&A portfolio, we've always been taking a very diversified approach. You see that in the lines of our businesses, and you see that our product continues to expand also broadly. We're entering our ninth market, which also shows our diversification also into geographies.

Peter Oey: Sure, yeah. Look, I won't comment on specific M&A speculation. I'll speak to how we view our position in this evolving landscape. With any M&A, we always take into account the regulatory environment. It's really critical, and we wanna work with the relevant agencies there also, because there's always synergies and dis-synergies that we could accrue from any transactions. I've always spoken in many quarterly earnings, we always have a very high bar when it comes to M&A transaction itself. When specifically to Indonesia, and also just our M&A portfolio, we've always been taking a very diversified approach. You see that in the lines of our businesses, and you see that our product continues to expand also broadly. We're entering our ninth market, which also shows our diversification also into geographies.

Speaker #4: For our mobility business, total active driver-partners increased 4% quarter-on-quarter and 16% year-on-year to reach another all-time high, in spite of macroeconomic uncertainty.

Speaker #4: So, when we build these AI tools well, and when we genuinely partner and outserve them, the economics tend to follow naturally.

Speaker #1: Thank you, Anthony. So, another highly asked question is on regional corporate costs, and also related to AI. This comes from several analysts: Jiang of Barclays, Wei of Mizuho, Divya of Morgan Stanley, and Ranjan of JPMorgan.

Speaker #1: So regional corporate costs increased year-on-year to $114 million for the first quarter. Can you help us understand how much of this step-up is AI infrastructure costs, whether it's tokenization of cloud versus general inflation, as well as other effects?

Peter Oey: The way we always position the lens that we take is diversification. That's really important. Specifically though for Indonesia, as Alex just mentioned, it's really important that we have a very constructive and very healthy ecosystem, both for our driver partners, consumers, and also for our restaurants. Specifically to Indonesia, our strategy for Indonesia remains fundamentally unchanged despite what we've seen over the weekend and also the way we approach the strategies in Indonesia. Our Indonesia mobility business continues to grow double digits year over year. It remains stable quarter on quarter in spite of the seasonal headwinds. As I'm always reiterating that, we're very highly disciplined in our capital allocation.

Peter Oey: The way we always position the lens that we take is diversification. That's really important. Specifically though for Indonesia, as Alex just mentioned, it's really important that we have a very constructive and very healthy ecosystem, both for our driver partners, consumers, and also for our restaurants. Specifically to Indonesia, our strategy for Indonesia remains fundamentally unchanged despite what we've seen over the weekend and also the way we approach the strategies in Indonesia. Our Indonesia mobility business continues to grow double digits year-over-year. It remains stable quarter on quarter in spite of the seasonal headwinds. As I'm always reiterating that, we're very highly disciplined in our capital allocation.

Speaker #1: And how should we expect the AI spend to start translating into measurable cost savings elsewhere in the P&L that can offset this higher regional corporate cost run rate?

Speaker #1: So this is a question for Peter.

Speaker #5: Sure. Let me start by saying that the step-up that you saw in the first quarter of regional corporate costs was a conscious decision. We made that decision as a management team to invest in the AI infrastructure that we've been talking about for many quarters, and Anthony just answered the question regarding AI and what we're deploying to our partners, as well as now we've started to deploy to our consumers also at the same time.

Speaker #5: And that really underpins the graph intelligence layer that we spoke a lot about, actually, a few weeks ago at the GrabX event, regarding the 13 new product AI experience features that we're rolling out.

Alex Hungate: When we evaluate any strategic opportunity, it's strictly through the lens of long-term shareholder value and also how can we diversify our Grab business.

Peter Oey: When we evaluate any strategic opportunity, it's strictly through the lens of long-term shareholder value and also how can we diversify our Grab business.

Speaker #5: So we are investing in our AI, specifically towards the tokenization stack that we saw in the first quarter, and also the cloud capacity that needs to run.

Douglas Eu: Thank you, Peter. The next question comes from Alicia of Citi and Wei of Mizuho. The question topic now moves back to the fuel crisis as well. Given the step-up in partner incentives to offset elevated fuel costs, how has this impacted demand elasticity and translated into revisions to your near-term financial outlook for mobility? Should we expect levels to remain elevated, or do you see offsetting levers such as EV adoption and cross-border rides that could bring incentives back down in H2 and support the sequential EBITDA ramp-up implied by your full-year $700 to 720 million guidance?

Speaker #5: And powers those tokenization at the same time. Now, the early returns on those investments are critical. We can't discount because that's also showing up in the numbers.

Speaker #5: And Anthony just also shared some of those on the driver's side and the merchant assist, by where they're seeing the impact on earnings, which is really a critical part of that healthy ecosystem.

Speaker #5: If we look at the adoption of these driver AI systems, which is now over 50%, and we've generated over 1.25 million interactions in just two months since we rolled it out, we've seen also, for merchants, they are using the AI assistant.

Alex Hungate: Thanks, Alicia, Wei. Great question. Yes, Q1, you can see that driver incentives was elevated. Two specific drivers, though. One is, and most importantly, was the confluence of Lunar New Year and Ramadan within the Q1, both in the Q1 this year, creating acute supply pressures as usual during those two festive periods. It's a deliberate. The second factor was, of course, the fuel crisis. Towards the end of the quarter, during March, we started a deliberate decision to support our driver partners with the elevated fuel prices across some countries in the region. As we move into the Q2, of course, the festive-driven incentive pressure normalizes, but fuel does remain an important variable that we're watching very, very closely.

Speaker #5: Their GMV is also up double digits on a year-over-year basis. So they're thriving as a merchant, and we're benefiting also as a platform from that.

Speaker #5: And this is the type of thing that we want to see more and more coming out from this AI rollout, which is really critical.

Speaker #5: Now, if you strip out all these AI investments, and we saw some FX headwind also from the weaker USD, the US dollar, and our underlying cost base—it's really important it remains lean.

Speaker #5: And disciplined. And that's been a mandate in how we run Grab. So I am not expecting any further step-ups from regional corporate costs; we expect the regional corporate costs to stabilize around the levels that you saw in the first quarter for the rest of 2026.

Alex Hungate: The targeted earnings support will continue into Q2, but it no longer with the seasonal impact. We expect this Q1 to be a peak in the driver incentives. We are reiterating the full year guidance, therefore, of $700 to 720 million for adjusted EBITDA, assuming that peak, and not that it's a run rate, but it's more like a peak. I would say we've got multiple levers available to us, including, if necessary, more emphasis on advertising and financial services monetization to defend the overall margin trajectory for the full year if those fuel pressures persist through the full year. In the medium term, if those elevated fuel prices continue, we would have to pass some more of the costs on to consumers.

Speaker #1: Thank you, Peter. So the next question now moves to the share repurchase. And this comes from Ranjan of JPMorgan and Divya of Morgan Stanley.

Speaker #1: So, Grab has announced that it's accelerating to repurchase $400 million of shares at the end of March itself. Nevertheless, the basic and diluted shares have increased quarter on quarter.

Speaker #1: So, what is the impact of dilution from stock-based compensation? And with regard to the share repurchase program, would you consider upsizing this given the current stock price?

Speaker #5: OK. So I'll take this one. If you step back, we announced a $500 million share buyback program earlier this year. And I announced also a $250 million accelerated share repurchase and an additional $150 million in contingent forward purchase on the 24th of March.

Alex Hungate: Of course, we'll do that very judiciously because we want to maintain healthy demand for our driver partners through this difficult time. Finally, I think it's worth emphasizing, as we saw that the impact of AI marketplace optimization this quarter was very powerful. We did use it to manage, for example, incentive spend for consumers. You can see that the incentive spend for consumers became more efficient during this quarter. Going into the full year, we will also have that powerful capability at our disposal to try and manage some of the volatility and incentive spend.

Speaker #5: So, a total of $400 million has been accelerated, which means it was only in the market for 5 to 5 trading days in Q1 itself.

Speaker #5: So you can't look at that in isolation. Now, both these programs are expected to be executed over the next four months. So I'll share a lot more in the next quarterly earnings when we look at the Q2 results.

Speaker #5: Now, in terms of share count, it would amount to roughly around 2% of our total share count, which will more than offset the dilution from stock-based compensation.

Douglas Eu: Thank you, Alex. The next question, the topic will now move into AI. This comes from Divya of Morgan Stanley and Wei of Mizuho. On AI monetization, are you building toward a merchant and driver SaaS revenue stream that sits outside the current commission rate structure, or are these gonna be remaining bundled into the existing take rate? What AI tools are you investing in mainly into this quarter? This is a question for Anthony.

Speaker #5: So that's how we're viewing it. As a reminder, there's still another $100 million left to go in the share buyback program. And we'll continue to have discussions around capital allocations with our board.

Speaker #1: Thanks, Peter. So the next question now moves to groceries. This is a question that comes from Wei of Mizuho. So regarding the grocery contribution, you've mentioned that GrabMart is only 10% of Deliveries GMV.

Anthony Tan: Thanks so much, Divya and Wei. Appreciate the question. Look, our approach to tools like Merchant AI and Driver AI Assistant, Coach, has been to solve everyday problems that our drivers and merchant partners face. There's no reason why our partners should not have access to these tools that will enable them to grow their customers and earnings. If we get that right, the tools and the partnership right, we build something competitors can't easily replicate, and it creates high loyalty, high engagement, which results in them choosing us as their primary platform. Not just because of the tech, but because of the trust and of course growing earnings for them. This has translated into concrete results within our ecosystem. On a year-on-year basis, not only do we see the growth in the number of active merchant partners, but their earnings also grew 12% during the quarter.

Speaker #1: But growing 1.7 times faster than food. When you look at the grocery TAM in Southeast Asia, and the economics of the GrabMart model itself, where does GrabMart need to be to basically contribute to deliveries GMV by 2028 to underpin the $1.5 billion EBITDA target?

Speaker #1: And at what point does grocery become margin accretive? The segment, rather than the drag to the blended deliveries economics. So this is a question for Alex.

Speaker #4: So GrabMart is an exciting segment. I mean, the TAM is very large—arguably larger than food delivery altogether. So we are doing a lot to accelerate the product innovation.

Speaker #4: Particularly the front end, the AI-powered shopping agents, which we think will transform the ease with which consumers can, for example, create a weekly shopping basket.

Speaker #4: And then improve the targeting for Grab More cross-sell as well. And by the way, Grab More grew more than double digit quarter on quarter.

Anthony Tan: For our mobility business, total active driver partners increased 4% quarter-on-quarter and 16% year-on-year to reach another all-time high in spite of macroeconomic uncertainty. When we build these AI tools well, and when we genuinely partner and outserve them, the economics tends to follow naturally.

Speaker #4: So I think it's very, very good signs for both of those things. Overall, as a result, the MTUs going into grocery are 2.6 times the rate of food MTU growth on a year-on-year basis.

Speaker #4: So that shows you that it's really expanding the top of our funnel, which is extra important in the age of AI in terms of generating data and deepening the long-term value relationships that we have with our consumers.

Douglas Eu: Thank you, Anthony. Another highly asked question is on regional corporate costs and also related to AI. This comes from several analysts, Jiong of Barclays, Wei of Mizuho, Divya of Morgan Stanley, and Ranjan of J.P. Morgan. Regional corporate costs increased year-on-year to $114 million for Q1. Can you help us understand how much of the step-up is AI infrastructure costs, whether it's tokenization or cloud, versus general inflation as well as FX? How should we expect the AI spend to start translating into measurable cost savings elsewhere in the P&L that can offset this higher regional corporate cost run rate? This is a question for Peter.

Speaker #4: And then the order frequency that we saw was 1.8 times higher than the food-only users, which illustrates that long-term value enhancement that I was speaking about.

Speaker #4: So over the long term, the North Star is very clear. We've got global peers who have achieved like 20% to 40% Mart penetration as a percentage of their deliveries business overall.

Speaker #4: So it's definitely the right model that we're pursuing. And with regards to the three-year guidance that you asked about, we expect that GrabMart will maintain its current growth momentum and outpace Deliveries growth throughout.

Peter Oey: Sure. Let me just start by saying that the step-up that you saw in the Q1 of regional corporate costs was a conscious decision. We made that decision as a management team to invest in the AI infrastructure that we've been talking about for many quarters. Anthony just answered a question regarding AI and what we're deploying to our partners as well as now we're starting to deploy to our consumers also at the same time. That really underpins to the Grab Intelligence layer that we spoke a lot about actually a few weeks ago at the GrabX event regarding the new 13 new product AI experience features that we're rolling out.

Speaker #4: And therefore, the higher basket sizes, the engagement, and the lifetime value we can achieve reinforce our conviction to achieve the long-term sustainable economics alongside it as part of a comprehensive super app LTV relationship with customers powered by AI.

Speaker #4: So that's how we think about it, rather than standalone vertical by vertical. That's the power of our approach. And that power becomes enhanced in the AI world, where our optimization across all those verticals to get to the right LTV customers is particularly powerful.

Peter Oey: We are investing in our, in the AI, specifically towards tokenization stack that we saw in Q1, and also the cloud capacity that needs to run and powers those tokenization at the same time. Now, the early returns on those investment is critical also we can't discount because that's also showing up in the numbers. Anthony just also shared some of those on the driver's side and the merchant assist by where they're seeing the impact on earnings, which is really a critical part of that healthy ecosystem. If you look at the adoption of these Driver AI Assistant, which is now over 50%, and we've generated over 1.25 million interaction in just 2 months since we rolled it out.

Speaker #1: Thanks, Alex. So the next question will move to financial services. This comes from Ranjan of JPMorgan. So, a two-part question. The first question is regarding the deposits.

Speaker #1: Deposits have remained flat quarter on quarter. The question is, what are the challenges that Grab is facing in growing its deposit base? The second part of the question is on the loan book and securitization.

Speaker #1: So, would Grab consider securitizing its loan book to free up capital to grow the business further as well? So perhaps the first question would be for Alex on deposits, and Peter on the question of securitization.

Speaker #4: OK. Well, first of all, we actually don't have any issue at all in raising deposits. We've been really gratified at the trust that consumers have in the Grab brand, the Grab ecosystem.

Peter Oey: We've seen also, for merchants that are using the AI Assistant, their GMV is also up double digits on a year-over-year basis. They're thriving as a merchant, and we're benefiting also as a platform from that. These are the type of things that we wanna see more and more coming out from these AI rollouts, which is really critical. Now, if you strip out all these AI investments, and we saw some FX headwind also from the weaker USD, the US dollar, and our underlying cost base, which is really important, remains lean and disciplined. That's been a mandate at how we run Grab. I'm not expecting any further step-ups from regional corporate costs. We expect the regional corporate costs to stabilize around the levels that you saw in Q1 for the rest of 2026.

Speaker #4: Our capabilities to protect their money. And if you look at the pricing of our deposits, we are never the most aggressive in the market.

Speaker #4: We're able to actually gather sufficient deposits to create the right shape of balance sheet, so there's no point having excess deposits, particularly in this yield curve environment.

Speaker #4: So what you're seeing is us carefully managing the level of deposits to make sure that we optimize for P&L purposes. If we needed to raise more deposits, we're very confident that we can do that.

Speaker #3: On the topic of securitization, it's a potential tool for us to be able to recapitalize and recycle on a long-term basis, particularly as the loan book grows.

Speaker #3: Just to remind everyone, we have two parts of our lending book. We have the bank's piece also, which is backed by the customer deposits.

Speaker #3: And then you've got also our Grab Financial Services, non-bank side, which is on-balance-sheet equity-wise. If you look at our current priority of scaling the lending through our digital banks, we have deposits of roughly $1.6 billion.

Douglas Eu: Thank you, Peter. The next question now moves to the share repurchase, and this comes from Ranjan of J.P. Morgan and Divya of Morgan Stanley. Grab has announced its acceleration to repurchase $40 million of shares, you know, at the end of March itself. Nevertheless, the basic and diluted shares have increased quarter-on-quarter. What is the impact of dilution from stock-based compensation? With regard to the share repurchase program, would you consider upsizing this given the current stock price?

Speaker #3: There's still a lot of headroom in terms of the loan-to-deposit ratio that we could deploy towards those loans. And we are still on target to get to the $2 billion loan book by the end of the year.

Peter Oey: Okay, I'll take this one. If you step back, we announced a $500 million share buyback program earlier this year. I announced also a $250 million accelerated share repurchase and an additional $150 in contingent forward purchase on 24 March. For a total of $400 million has been accelerated, which means only in the market for five to five trading days in Q1 itself. You can't look at it in isolation. Now, both these programs are expected to be executed over the next 4 months. I'll share a lot more in the next quarterly earnings when we look at the Q2 results.

Speaker #3: So our priority now is to make sure that our digital bank's capital structure is efficient, and that deposits are an important component of that.

Speaker #3: But long term, there could be options for us to recycle, based on an immediate priority right now.

Speaker #1: Thank you. So now we'll move on to the final question for today. This comes from Puge, HSBC. So regarding the Foodpanda Taiwan recently announced acquisition.

Speaker #1: Can you share the progress, and what are the key milestones to watch and the likely timings of those milestones? So, final question for Alex.

Speaker #4: Well, it may be a very brief final answer then, Puge. Thanks. So we're in the middle of the approval process with regulators, so no real updates today.

Speaker #4: But we'll make sure we provide updates as soon as we get any further feedback. Thank you.

Peter Oey: Now, in terms of share count, it would amount to roughly around 2% of our total share count, which will more than offset for the dilution from stock-based compensation. That's how we're viewing it. As a reminder, there's still another $100 million left to go in the share buyback program, and we'll continue to have discussions around capital allocations with our board.

Speaker #1: OK, so thanks very much, everyone, for the questions. That concludes today's earnings call. Let me hand over the time to Peter to deliver the closing remarks.

Speaker #5: Thanks, everyone. Hey, it was great. There's a lot going on, typically, in Southeast Asia, earning Grab. I hope you got a flavor in terms of how our performances are.

Speaker #5: Q1's do a fantastic start for us across all the financial fundamentals of our business. A lot of questions around fuel prices, obviously, which we hope we've addressed.

Douglas Eu: Thanks, Peter. The next question now moves to groceries. This question comes from Wei of Mizuho. Regarding to grocery contribution, you've mentioned that GrabMart is only 10% of delivery's GMV, but growing 1.7 times faster than food. When you look at the grocery TAM in Southeast Asia and the economics of the GrabMart model itself, where does GrabMart need to be to basically to contribute to delivery's GMV by 2028 to underpin the $1.5 billion EBITDA target? At what point does grocery become margin accretive to segment rather than a drag to the blended deliveries economics? This is a question for Alex.

Speaker #5: We are leaning in. We want to make sure our driver community are also benefiting, and also will be helping them along the way. And you are continuing to make sure that EV acceleration also happens within Southeast Asia.

Speaker #5: It's a great catalyst for that as far as to lean in on EV adoption. A lot of questions around Indonesia, also around the 8% commission.

Speaker #5: Just to reiterate, demand for our two-wheels business in Indonesia is less than 6% of our GMV. We continue to reiterate our four-year guidance for the rest of the year.

Alex Hungate: GrabMart is an exciting segment. I mean, the TAM is very large, arguably larger than food delivery altogether. We are doing a lot to accelerate the product innovation, particularly the front end, the AI-powered shopping agent, which we think will transform the ease with which consumers can, for example, create a weekly shopping basket and then improve the targeting for GrabMore cross-sell as well. By the way, GrabMore grew more than double-digit quarter-on-quarter. I think it's very, very good signs for both of those things. Overall, as a result, the MTUs going into grocery are 2.6 times the rate of food MTU growth on a year-on-year basis.

Speaker #5: What makes us confident is the traction that we're seeing across the portfolio is about businesses today. So, all the hard work. Thank you very much for all the Grabbers.

Speaker #5: Thank you for all the support that you give us in the first quarter. To all our driver partners, to all our merchants, for all the things that we want to serve and help you also thrive.

Speaker #5: Thank you very much for the first quarter. And also to our shareholders for our support. As usual, the IR team, Doug and I will be on the road over the next few weeks.

Speaker #5: We'll be in the US. We will be across Asia—Singapore, Hong Kong—and also in Australia. Please feel free to reach out to us if you want to meet with us or have a chat, have a coffee.

Alex Hungate: That shows you that it's really expanding the top of our funnel, which is extra important in the age of AI in terms of generating data and deepening the long-term value relationships that we have with our consumers. The order frequency that we saw were 1 times, 1.8 times higher than the food-only users, which illustrates that long-term value enhancement that I was speaking about. Over the long term, the North Star is very clear. We've got global peers who have achieved like 20% to 40% Mart penetration as a percentage of their deliveries business overall. It's definitely the right model that we're pursuing. With regards to the 3-year guidance that you asked about, we expect that GrabMart will maintain its current growth momentum and outpace deliveries growth throughout.

Alex Hungate: Therefore, the higher basket sizes, the engagement and the lifetime value we can achieve reinforce our conviction to achieve the long-term sustainable economics alongside it as part of a comprehensive super app LTV relationship with customers powered by AI. That's how we think about it rather than standalone vertical by vertical. That's the power of our approach. That power becomes enhanced in the AI world where our optimization across all those verticals, to get to the right LTV customers is particularly powerful.

Douglas Eu: Thanks, Alex. The next question will move to financial services. This comes from Ranjan of J.P. Morgan. A 2-part question. The first question is regarding the deposits. Deposits have remained flat quarter and quarter. The question is, what are the challenges that Grab is facing in growing deposit base? The second part of the question is on the loan book and securitization. Would Grab consider securitizing its loan book to free capital to grow the business as well? Perhaps the first question would be for Alex on deposits and Peter, the question on securitization.

Alex Hungate: Okay. Well, first of all, we actually don't have any issue at all in raising deposits. We've been really gratified at the trust that consumers have in the Grab brand, the Grab ecosystem, our capabilities to protect their money. If you look at the pricing of our deposits, we are never the most aggressive in the market. We're able to actually gather sufficient deposits to create the right shape of balance sheet. There's no point having excess deposits, particularly in this yield curve environment. What you're seeing is us carefully managing the level of deposits to make sure that we optimize for P&L purposes. If we needed to raise more deposits, we're very confident that we can do that.

Peter Oey: Now, on the topic of securitization, it's a potential tool for us to be able to recapital recycle on a long-term basis, particularly as the, our loan book grows. Just to remind everyone, we have two parts of our lending book. We have the banks piece also, which are backed by the customer deposits. Then you've got also our Grab Financial Services non-bank side, which is on balance sheet equity-wise. If you look at our current priority through scaling the lending through our digital banks, we have deposits of roughly $1.6 billion. There's still a lot of headroom in terms of their loan-to-deposit ratio that we could deploy towards those loans. We are still on target to get to the $2 billion loan book by the end of the year.

Peter Oey: Our priority now is to use, make sure that our digital banks' capital structure is efficient, and that those deposits are an important component of that. Long term, there could be options for us to recycle. That's not an immediate priority right now.

Douglas Eu: Thank you. Now we'll move on to the final question for today. This comes from Piyush of HSBC. Regarding to Foodpanda, Taiwan, recently announced acquisition, can you share the progress and what are the key milestones to watch and likely timings of those milestones? Final question for Alex.

Alex Hungate: Well, maybe a very brief final answer then, Piyush. Thanks. We're in the middle of the approval process with regulators, so no real updates today. We'll make sure we provide updates as soon as we get any further feedback. Thank you.

Douglas Eu: Okay, thanks very much, everyone for the questions. That concludes today's earnings call. Let me hand over the time to Peter to deliver the closing remarks.

Peter Oey: Thanks, everyone. Hey, look, there's a lot going on typically in Southeast Asia and in Grab. I hope you got a flavor on terms of how our performance are. Q1's off to a fantastic start for us across all the financial fundamentals of our business. A lot of questions around fuel prices, obviously, which we hope we've addressed that. We are leaning in. We wanna make sure our driver community are also benefiting, and also I will be helping them along the way. We are continuing to make sure that EV acceleration also happens within Southeast Asia. It's a great catalyst for that for us to lean in on EV adoption. A lot of questions around Indonesia also around the 8% commission. Just to reiterate, our demand or two-wheels business for Indonesia is less than 6% of our GMV.

Peter Oey: We continue to reiterate our full year guidance for the rest of the year. You know, what makes us confident is the traction that we're seeing across the portfolios of our businesses today. All the hard work, thank you very much for all the Grabbers. Thank you for all the support you gave us in the first quarter. To all our driver partners, to all our merchants, for all the things that we wanna serve and help you also thrive, thank you very much for the first quarter, and also to our shareholders for your support. As usual, the IR team, Ken, Doug, and I will be on the road over the next few weeks. We'll be in the US. We will be across Asia, Singapore, Hong Kong, and also in Australia.

Peter Oey: Please reach out to us if you want to meet with us or have a chat, have a coffee. We're more than happy to sit down with you. See you all next quarter.