The Singapore-headquartered firm faces challenges with still-rising interest rates, a souring economic environment and the rise of artificial intelligence, analysts say.
“Grab’s management may have viewed its headcount as bloated,” said Mr Nirgunan Tiruchelvam, head of consumer and internet at investment advisory firm Aletheia Capital.
“Human resource is a key component of costs, and it is important to manage them to achieve profits,” said Associate Professor Nitin Pangarkar from the National University of Singapore Business School.While Southeast Asia remains a bright spot, growth could slow with the ongoing Ukraine war and declining demand from the United States, said Ms Yau.
Across its operations, Grab’s foray into the digital banking space will remain its “weakest link” with capital likely required to keep the new venture going, said Mr Tiruchelvam.More critically, the company will have to keep an eye on the rise of generative artificial intelligence – a key challenge mentioned by its CEO.
The recent surge in AI technology such as ChatGPT poses challenges for Grab, whose technology precedes some of the recent advancements, said Mr Tiruchelvan.
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