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Signages at the Grab Holdings Ltd. headquarters in Singapore, on Sunday, Aug. 20, 2023. Grab released earnings results on Aug. 23. Photographer: Ore Huiying/Bloomberg via Getty Images

Ore Huiying | Bloomberg | Getty Images

Singapore-based Grab said on Wednesday that its ride-hailing unit is on track to hit pre-Covid levels by the end of this year.

In its second-quarter earnings release, Grab reported that its mobility gross merchandise value for the quarter was $1.32 billion, a 28% increase from $1.03 billion in the same period a year ago. Grab, which also offers food delivery and mobile payments, said that its mobility GMV has recovered to 85% of pre-Covid levels.

“International traveler demand continues to recover. We increased airport rides by 64% year on year to reach 77% of pre-Covid levels,” COO Alex Hungate said during an earnings call Wednesday.

“Domestic demand also further normalized across our markets with mobility GMV now 85% of pre-Covid levels. When we compare mobility GMV levels between second quarter 2023 and the same period in 2019, several of our core markets such as Malaysia, Singapore and Thailand have either reached or surpassed these levels,” said Hungate.

Pandemic lockdowns and restrictions hit Grab’s ride-hailing business. In the third quarter of 2021, its mobility business fell behind its deliveries unit, recording $88 million in revenue for a 26% year-over-year decrease while the latter’s revenue soared 58%. Singapore lifted most of its Covid-19 restrictions in April 2022 and all remaining pandemic-era border measures in February this year.

We remain on track to exit 2023 at pre-Covid GMV levels.

Peter Oey

CFO, Grab

In February, Grab CFO Peter Oey told CNBC the company has “seen a lot more traffic” as people head back to offices and resume travel.

“We remain on track to exit 2023 at pre-Covid GMV levels,” Oey said during Grab’s earnings call on Wednesday.

At the start of 2023, Grab also resumed GrabShare — its car-pooling service which was suspended during the pandemic.

“GMV growth was attributed to the growth in mobility and deliveries GMV, and group monthly transacting users,” Sachin Mittal, head of telecom, media and technology research at DBS Bank, said in a note.

Deliveries GMV grew 4% year on year due to an expanding subscriber base for GrabUnlimited, a monthly subscription plan that offers users discounts and deals.

DBS said Grab is fully valued and that “we do not see a big room for margin upliftment in the long-term.”

Grab’s Hungate said driver supply levels are currently at 84% of pre-Covid levels and that the firm will “continue to focus on improving driver supply.” Singapore has faced a shortage of drivers since the pandemic, resulting in higher fares and longer waiting times.

In July, Grab said it would acquire Trans-cab to grow its driver base and digitize Trans-cab’s fleet operations. Trans-cab is Singapore’s third largest taxi operator and has a combined fleet of more than 2,500 vehicles. The deal is expected to be completed by the fourth quarter.

“The company flexed its competitive strength this quarter by acquiring Trans-cab. We believe the acquisition provides inroads to car leasing and expands the fleet for Grab, which should further bolster its mobility services in Singapore,” Kai Wang, senior equity analyst at Morningstar Asia, said in a Aug. 24 report.

Pulls forward profitability timeline

On Wednesday, Grab posted revenue and net loss figures that beat estimates. Revenue for the second quarter was $567 million, up 77% from a year ago. Its net loss was $135 million, an improvement of 75.3% from the $547 million logged in the second quarter of 2022.

Grab’s U.S.-listed shares closed 10.78% higher on Wednesday.

“Overall, it is quite a positive set of numbers,” said Jonathan Woo, senior research analyst at Phillip Securities Research.

“At least there is some end in sight for profitability. We think that Grab could turn a net profit as soon as early 2025 if costs continue to improve,” said Woo.

DBS Bank says it wasn't positive on Singapore-based Grab, but it's 'more comfortable' now

Grab is largely unprofitable, amassing billions of dollars in losses since its inception. But on Wednesday, Grab pushed forward its breakeven target to the third quarter. It previously forecast it would hit break even in the fourth quarter. For 2023, Grab expects revenue between $2.2 billion and $2.3 billion.

Over the past few months, Grab cut costs in response to macroeconomic headwinds, reducing customer incentives and discretionary spending, as well as conducting mass layoffs. Other regional tech giants like Sea and GoTo similarly slashed costs through methods such as mass layoffs and freezing salaries.

In June, Grab announced it would cut over 1,000 jobs in order to “adapt to the environment” and a higher cost of capital. It was the group’s largest round of layoffs since 2020, when it laid off 360 employees in the face of pandemic challenges.

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Mark Zuckerberg slams Apple on its lack of innovation and ‘random rules’

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Mark Zuckerberg slams Apple on its lack of innovation and 'random rules'

Meta CEO Mark Zuckerberg appears at the Meta Connect event in Menlo Park, California, Sept. 25, 2024.

David Paul Morris | Bloomberg | Getty Images

Meta CEO Mark Zuckerberg slammed rival tech giant Apple for lackluster innovation efforts and “random rules” in a lengthy podcast interview on Friday.

“On the one hand, [the iPhone has] been great, because now pretty much everyone in the world has a phone, and that’s kind of what enables pretty amazing things,” Zuckerberg said in an episode of the “Joe Rogan Experience.” “But on the other hand … they have used that platform to put in place a lot of rules that I think feel arbitrary and [I] feel like they haven’t really invented anything great in a while. It’s like Steve Jobs invented the iPhone, and now they’re just kind of sitting on it 20 years later.”

Zuckerberg added that he thought iPhone sales were struggling because consumers are taking longer to upgrade their phones because new models aren’t big improvements from prior iterations.

“So how are they making more money as a company? Well, they do it by basically, like, squeezing people, and, like you’re saying, having this 30% tax on developers by getting you to buy more peripherals and things that plug into it,” Zuckerberg said. “You know, they build stuff like Air Pods, which are cool, but they’ve just thoroughly hamstrung the ability for anyone else to build something that can connect to the iPhone in the same way.”

Apple defends itself from pushback from other companies by saying that it doesn’t want to violate consumers’ privacy and security, according to Zuckerberg. But he said that the problem would be solved if Apple fixed its protocol, like building better security and using encryption.

“It’s insecure because you didn’t build any security into it. And then now you’re using that as a justification for why only your product can connect in an easy way,” Zuckerberg said.

Zuckerberg said that if Apple stopped applying its “random rules,” Meta’s profit would double.

He also took shots at Apple’s Vision Pro headset, which had disappointing U.S. sales. Meta sells its own virtual headsets called the Meta Quest.

“I think the Vision Pro is, I think, one of the bigger swings at doing a new thing that they tried in a while,” Zuckerberg said. “And I don’t want to give them too hard of a time on it, because we do a lot of things where the first version isn’t that good, and you want to kind of judge the third version of it. But I mean, the V1, it definitely did not hit it out of the park.”

“I heard it’s really good for watching movies,” he added.

Apple did not immediately respond to a request for comment from CNBC.

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Why Meta had to ‘bend the knee to Trump’ ahead of his inauguration

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Why Meta had to 'bend the knee to Trump' ahead of his inauguration

Jakub Porzycki | Nurphoto | Getty Images

Mark Zuckerberg’s announcement this week that Meta would pivot its moderation policies to allow more “free expression” was widely viewed as the company’s latest effort to appease President-elect Donald Trump. 

More than any of its Silicon Valley peers, Meta has taken numerous public steps to make amends with Trump since his election victory in November.

That follows a highly contentious four years between the two during Trump’s first term in office, which ended with Facebook — similar to other social media companies — banning Trump from its platform.

As recently as March, Trump was using his preferred nickname of “Zuckerschmuck” when talking about Meta’s CEO and declaring that Facebook was an “enemy of the people.”

With Meta now positioning itself to be a key player in artificial intelligence, Zuckerberg recognizes the need for White House support as his company builds data centers and pursues policies that will allow it to fulfill its lofty ambitions, according to people familiar with the company’s plans who asked not to be named because they weren’t authorized to speak on the matter.

“Even though Facebook is as powerful as it is, it still had to bend the knee to Trump,” said Brian Boland, a former Facebook vice president, who left the company in 2020.

Meta declined to comment for this article.

In Tuesday’s announcement, Zuckerberg said Meta will end third-party fact-checking, remove restrictions on topics such as immigration and gender identity and bring political content back to users’ feeds. Zuckerberg pitched the sweeping policy changes as key to stabilizing Meta’s content-moderation apparatus, which he said had “reached a point where it’s just too many mistakes and too much censorship.”

The policy change was the latest strategic shift Meta has taken to buddy up with Trump and Republicans since Election Day.

A day earlier, Meta announced that UFC CEO Dana White, a longtime Trump friend, is joining the company’s board.

And last week, Meta announced that it was replacing Nick Clegg, its president of global affairs, with Joel Kaplan, who had been the company’s policy vice president. Clegg previously had a career in British politics with the Liberal Democrats party, including as a deputy prime minister, while Kaplan was a White House deputy chief of staff under former President George W. Bush.

Kaplan, who joined Meta in 2011 when it was still known as Facebook, has longstanding ties to the Republican Party and once worked as a law clerk for the late conservative Supreme Court Justice Antonin Scalia. In December, Kaplan posted photos on Facebook of himself with Vice President-elect JD Vance and Trump during their visit to the New York Stock Exchange.

Joel Kaplan, Facebook’s vice president of global policy, on April 17, 2018.

Niall Carson | PA Images | Getty Images

Many Meta employees criticized the policy change internally, with some saying the company is absolving itself of its responsibility to create a safe platform. Current and former employees also expressed concern that marginalized communities could face more online abuse due to the new policy, which is set to take effect over the coming weeks. 

Despite the backlash from employees, people familiar with the company’s thinking said Meta is more willing to make these kinds of moves after laying off 21,000 employees, or nearly a quarter of its workforce, in 2022 and 2023. 

Those cuts affected much of Meta’s civic integrity and trust and safety teams. The civic integrity group was the closest thing the company had to a white-collar union, with members willing to push back against certain policy decisions, former employees said. Since the job cuts, Zuckerberg faces less friction when making broad policy changes, the people said.

Zuckerberg’s overtures to Trump began in the months leading up to the election.

Following the first assassination attempt on Trump in July, Zuckerberg called the photo of Trump raising his fist with blood running down his face “one of the most badass things I’ve ever seen in my life.”

A month later, Zuckerberg penned a letter to the House Judiciary Committee alleging that the Biden administration had pressured Meta’s teams to censor certain Covid-19 content.

“I believe the government pressure was wrong, and I regret that we were not more outspoken about it,” he wrote. 

After Trump’s presidential victory, Zuckerberg joined several other technology executives who visited the president-elect’s Mar-a-Lago resort in Florida. Meta also donated $1 million to Trump’s inaugural fund.

On Friday, Meta revealed to its workforce in a memo obtained by CNBC that it intends to shutter several internal programs related to diversity and inclusion in its hiring process, representing another Trump-friendly move.

The previous day, some details of the company’s new relaxed content-moderation guidelines were published by the news site The Intercept, showing the kind of offensive rhetoric that Meta’s new policy would now allow, including statements such as “Migrants are no better than vomit” and “I bet Jorge’s the one who stole my backpack after track practice today. Immigrants are all thieves.”

Recalibrating for Trump

Zuckerberg, who has been dragged to Washington eight times to testify before congressional committees during the last two administrations, wants to be perceived as someone who can work with Trump and the Republican Party, people familiar with the matter said.

Though Meta’s content-policy updates caught many of its employees and fact-checking partners by surprise, a small group of executives were formulating the plans in the aftermath of the U.S. election results. By New Year’s Day, leadership began planning the public announcements of its policy change, the people said. 

Meta typically undergoes major “recalibrations” after prominent U.S. elections, said Katie Harbath, a former Facebook policy director and CEO of tech consulting firm Anchor Change. When the country undergoes a change in power, Meta adjusts its policies to best suit its business and reputational needs based on the political landscape, Harbath said. 

“In 2028, they’ll recalibrate again,” she said.

After the 2016 election and Trump’s first victory, for example, Zuckerberg toured the U.S. to meet people in states he hadn’t previously visited. He published a 6,000-word manifesto emphasizing the need for Facebook to build more community.

The social media company faced harsh criticism about fake news and Russian election interference on its platforms after the 2016 election.

Following the 2020 election, during the heart of the pandemic, Meta took a harder stand on Covid-19 content, with a policy executive saying in 2021 that the “amount of COVID-19 vaccine misinformation that violates our policies is too much by our standards.” Those efforts may have appeased the Biden administration, but it drew the ire of Republicans.

Meta is once again reacting to the moment, Harbath said.

“There wasn’t a business risk here in Silicon Valley to be more right-leaning,” Harbath said.

While Trump has offered few specific policy proposals for his second administration, Meta has plenty at stake.

The White House could create more relaxed AI regulations compared with those in the European Union, where Meta says harsh restrictions have resulted in the company not releasing some of its more advanced AI technologies. Meta, like other tech giants, also needs more massive data centers and cutting-edge computer chips to help train and run their advanced AI models.

“There’s a business benefit to having Republicans win, because they are traditionally less regulatory,” Harbath said.

Meta’s CEO Mark Zuckerberg reacts as he testifies during the Senate Judiciary Committee hearing on online child sexual exploitation at the U.S. Capitol in Washington, U.S., January 31, 2024. 

Evelyn Hockstein | Reuters

Meta isn’t alone in trying to cozy up to Trump. But the extreme measures the company is taking reflects a particular level of animus expressed by Trump over the years.

Trump has accused Meta of censorship and has expressed resentment over the company’s two-year suspension of his Facebook and Instagram accounts following the Jan. 6 attack on the Capitol.

In July 2024, Trump posted on Truth Social that he intended to “pursue Election Fraudsters at levels never seen before, and they will be sent to prison for long periods of time,” adding “ZUCKERBUCKS, be careful!” Trump reiterated that statement in his book, “Save America,” writing that Zuckerberg plotted against him during the 2020 election and that the Meta CEO would “spend the rest of his life in prison” if it happened again.

Meta spends $14 million annually on providing personal security for Zuckerberg and his family, according to the company’s 2024 proxy statement. As part of that security, the company analyzes any threats or perceived threats against its CEO, according to a person familiar with the matter. Those threats are cataloged, analyzed and dissected by Meta’s multitude of security teams.

After Trump’s comments, Meta’s security teams analyzed how Trump could weaponize the Justice Department and the country’s intelligence agencies against Zuckerberg and what it would cost the company to defend its CEO against a sitting president, said the person, who asked not to be named because of confidentiality.

Meta’s efforts to appease the incoming president bring their own risks.

After Zuckerberg announced the new speech policy Tuesday, Boland, the former executive, was among a number of users who took to Meta’s Threads service to tell their followers that they were quitting Facebook. 

“Last post before deleting,” Boland wrote in his post.

Before the post could be seen by any of his Threads followers, Meta’s content moderation system had taken it down, citing cybersecurity reasons. 

Boland told CNBC in an interview that he couldn’t help but chuckle at the situation. 

“It’s deeply ironic,” Boland said.

— CNBC’s Salvador Rodriguez contributed to this report.

WATCH: Meta is returning to free speech tradition, says Facebook’s former chief privacy officer Chris Kelly

Meta is returning to free speech tradition, says Facebook's former chief privacy officer Chris Kelly

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Apple’s market share slides in China as iPhone shipments decline, analyst Kuo says

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Apple's market share slides in China as iPhone shipments decline, analyst Kuo says

Jaap Arriens | Nurphoto | Getty Images

Apple is losing market share in China due to declining iPhone shipments, supply chain analyst Ming-Chi Kuo wrote in a report on Friday. The stock slid 2.4%.

“Apple has adopted a cautious stance when discussing 2025 iPhone production plans with key suppliers,” Kuo, an analyst at TF Securities, wrote in the post. He added that despite the expected launch of the new iPhone SE 4, shipments are expected to decline 6% year over year for the first half of 2025.

Kuo expects Apple’s market share to continue to slide, as two of the coming iPhones are so thin that they likely will only support eSIM, which the Chinese market currently does not promote.

“These two models could face shipping momentum challenges unless their design is modified,” he wrote.

Kuo wrote that in December, overall smartphone shipments in China were flat from a year earlier, but iPhone shipments dropped 10% to 12%.

There is also “no evidence” that Apple Intelligence, the company’s on-device artificial intelligence offering, is driving hardware upgrades or services revenue, according to Kuo. He wrote that the feature “has not boosted iPhone replacement demand,” according to a supply chain survey he conducted, and added that in his view, the feature’s appeal “has significantly declined compared to cloud-based AI services, which have advanced rapidly in subsequent months.”

Apple’s estimated iPhone shipments total about 220 million units for 2024 and between about 220 million and 225 million for this year, Kuo wrote. That is “below the market consensus of 240 million or more,” he wrote.

Apple did not immediately respond to CNBC’s request for comment.

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