Uber v Grab: A Financials Deep Dive
Scale, Profitability and the Path to Dominance
Uber and Grab are not just similar companies. In many ways, they are cut from the same cloth.
In 2018, after years of fierce competition over territory in Southeast Asia, Uber ceded to Grab in a deal that shocked the region.
Uber decided to pull out of SEA, relinquishing all its assets to Grab, in exchange for a 27.5% stake. Today, 7 years later, Uber still owns a sizeable 14% chunk of the business.
As the global pioneer and undisputed market leader, Uber has been the face of the ride-hailing industry since inception. Under founder Travis Kalanick, the company reimagined urban transportation; replacing the traditional taxi model with a platform that prioritised convenience, transparency, and efficiency.
Grab has taken that same blueprint and executed it with laser focus across Southeast Asia. With ~50% share in ride-hailing and >50% in food delivery, it is the dominant force in the region. While Uber is ahead in the life cycle, Grab leads in its home markets, both in market share and user loyalty.
Today, Uber generates nearly $50B in annual revenue, serves 170 million monthly transacting users, and commands an enterprise value close to $200B, placing it among the top 75 most valuable companies globally. Its brand, worth $30B, is virtually synonymous with transportation.
Grab, though earlier in its journey, is no less impressive. With 44.5 million monthly transacting users and 120 million annual users, its user base is massive for a company just over a decade old.
It has become a household name in Southeast Asia and was recently ranked the 106th most valuable brand in the region and the second fastest-growing brand in 2024. At this pace, it's not a stretch to believe that Grab will soon break into the top 20 regional brands.
Analysing Financials:
Scale
Observations:
Uber brings in ~15x of Grab’s revenue while having just 3.8x the number of MTUs that Grab has.
This implies that Uber has much higher take rates and earns ~4x more per transacting user.
This should come as no surprise for Grab shareholders, with the Southeast Asian region, bar a few major cities, being a largely developing region.
>50% of the population are under the age of 32, with their highest earning years ahead of them. It is also a region that is growing rapidly, with huge growth expected in the coming decades.
Key Takeaways:
Grab’s revenue per user has lots of room to run, with monetisation, upselling and a general rise in spending power potential catalysts.
Grab’s serviceable addressable market will continue to grow as the population matures, and as incomes continue to rise.
There is room for 3-5x user expansion over time, especially if FinTech and DigiBank penetration improves.
Growth
Observations:
Most will be surprised that Grab, despite having 4x less users and 15x less revenue than Uber, is growing at similar rates.
The reason is that Uber, while being a much larger business, has exposure to several quick growing regions such as Latin America, Africa, and the Middle East.
Additionally, the rate of growth is not as important as the duration of growth.
Key Takeaways:
Grab’s revenue growth bottomed in Q3 2024, and has been climbing slowly in recent quarters. It will be interesting to see if it manages to re-accelerate its growth as it features new products and services on its platform, while growing its GFin segment.
Uber is an extremely impressive business with strong growth despite starting from a large base. It is undoubtedly a brilliant business.
Profitability
Observations:
With a quick look, it is clear to see that Uber is a vastly more profitable business than Grab today, with >18x the Adjusted EBITDA and Net Income.
Adjusted EBITDA margins are also much higher at Uber, over double that of Grab’s
Key Takeaways:
This comes as no surprise, considering Grab has yet to have a full year of profitability.
However, the trends are clear, Grab is in the inflection point towards profitability, a stark improvement from losing over $1.6B just 3 years ago.
This is also the path that Uber took, with cash burn a prerequisite to market share.
The 2.1% EBITDA margin suggests there is huge room for growth.
Cash Flow/Balance Sheet
Observations:
Grab’s operating cash flows are consistently positive now, a great indicator that the business is sustainable.
Grab has much more net cash relative to Uber’s size.
Key Takeaways:
Grab’s net cash is one of the key bullish theses for the business. Nearly 30% of its current market is in cash, with acquisitions galore happening, none as big as the rumoured GoTo acquisition.
M&A will be key for Grab as the mobility/deliveries space looks poised for consolidation.
Segments/Unit Economics
Observations:
Grab’s delivery segment is larger than its mobility segment, unlike Uber.
SEA consumers often use food delivery, sometimes daily, while ride-hailing may be less frequent. This supports Grab’s super-app strategy, building habitual use across categories.
Key Takeaways:
Grab’s proportion of delivery suggests it may be better positioned for stickiness, bundling, and subscription offerings (e.g. Grab Unlimited)
Grab’s take rate is ~1/2 that of Uber’s. This is a metric I expect to double in the coming years and prove to be a huge tailwind for Grab’s profitability.
Conclusion
Uber is a dominant global platform. But Grab, while earlier in its journey, is rapidly maturing and deeply entrenched in one of the world’s most dynamic regions.
With rising income levels, digital adoption, and ecosystem expansion, Grab is poised for long-term monetisation and margin upside.