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 strengthen its network of drivers in growing markets.
During a recent earnings call, Grab CEO Anthony Tan discussed the challenges in serving certain areas. He stated that even in smaller markets like Singapore, some regions remain “under-served” and “more difficult for human drivers to manage,” particularly in remote locations and during peak hours.
Singapore is a leader in autonomous vehicle innovation, with dedicated testing areas such as the Western Singapore Autonomous Vehicle Test Bed, where AVs undergo real-world testing.
Grab’s interest in AVs parallels similar moves by ride-hailing companies Uber and Lyft, who are also investing in self-driving technology.
The company expects a “longer road to mainstream AV adoption in other parts of Southeast Asia” due to different regulatory environments across the region.
Grab’s focus on reliability and safety in 2025 is important considering the potential impact of AVs on urban transportation. Autonomous vehicles are expected to improve road safety by reducing human errors, which cause most road accidents.
The shift toward AVs also supports Singapore’s green energy goals, as these vehicles are mainly electric. This change could help lower greenhouse gas emissions and reduce the number of privately owned vehicles.
Tan emphasized that upskilling drivers during the transition to autonomous vehicles is “core to our mission and an important aspect of our strategy.”
The adoption of AVs in Singapore’s public transport system is expected to boost efficiency and accessibility. Plans include deploying AV-enabled buses and autonomous shuttles to improve last-mile connectivity and reduce dependence on private cars.
Grab reported a 17% year-over-year revenue increase for the fourth quarter of 2024 and a 19% growth for the full year in its latest earnings report.
