Grab Holdings, Southeast Asia’s leading ride-hailing company, is exploring the use of autonomous vehicles (AVs) to serve less popular routes in Singapore.
The company is currently in talks with regulators and potential partners to deploy self-driving cars, aiming to enhance its network of drivers in rapidly expanding markets.
Addressing Underserved Areas
Anthony Tan, CEO of Grab, highlighted the challenges faced in serving certain areas during a recent earnings call.
He noted that even in smaller markets like Singapore, some regions remain “under-served” and “more challenging for human drivers to manage”, especially in remote locations and during peak hours.
The company’s interest in AVs aligns with Singapore’s position as a frontrunner in autonomous vehicle innovation. Singapore has established dedicated testing areas, such as the Western Singapore Autonomous Vehicle Test Bed, where AVs are trialed in real-world conditions.
Regulatory Landscape Across Southeast Asia
Grab’s exploration of AVs comes as other ride-hailing giants like Uber and Lyft are also venturing into self-driving technology.
However, Grab anticipates a “longer road to mainstream AV adoption in other parts of Southeast Asia” due to varying regulatory landscapes across the region.
The company’s focus on reliability and safety in 2025 is crucial, given the potential impact of AVs on urban transportation.
Autonomous vehicles are expected to enhance road safety by reducing human errors, which account for most road accidents.
Grab’s move towards AVs also aligns with Singapore’s green energy goals, as these vehicles are predominantly electric. This shift could contribute to lowering greenhouse gas emissions and reducing the number of privately owned vehicles on the road.
As Grab continues to explore AV technology, the company remains committed to its existing driver partners.
Tan emphasised the importance of upskilling drivers as part of the transition to autonomous vehicles, stating that it is “core to our mission and an important aspect of our strategy”.
Focus on Efficiency and Accessibility
The adoption of AVs in Singapore’s public transport system is expected to improve efficiency and accessibility. Plans are underway to deploy AV-enabled buses and autonomous shuttles, which could enhance last-mile connectivity and reduce reliance on private cars.
Grab’s interest in AVs comes at a time when the company is experiencing growth in other areas of its business.
In its latest earnings report, Grab reported a 17% year-over-year revenue increase for the fourth quarter of 2024 and a 19% growth for the full year.
As Grab navigates the evolving landscape of autonomous vehicles, the company’s efforts in 2025 will likely focus on ensuring the reliability and safety of these technologies while working closely with regulators and partners to integrate AVs into Singapore’s transportation network.
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