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Grab is working closely with the Singapore government on self-driving vehicles

Southeast Asian ride-hailing and delivery giant Grab is leaning into driverless technologies to boost market penetration in the region.

The Nasdaq-listed company, which posted four straight quarters of net profit for the first time, said its artificial-intelligence strategy has helped it to keep costs down and boost earnings. Now, it has its sights on delivery drones and self-driving vehicles.

Grab is working closely with the Singapore government on self-driving vehicles, but a high bar on safety protocols and training drivers means that “it’ll take time,” Chief Financial Officer Peter Oey said in an interview.

“We’re not going to rush,” Oey said.

Anthony Tan, chief executive and co-founder of Grab, said in an earnings call Thursday that the company is “leaning heavily” into the opportunity for autonomous vehicles across Southeast Asia, describing it as “very, very top of mind for us.”

Tan added that the company has been working closely with regulators across the region to study the implications of self-driving vehicles and drone deliveries while thinking about the rollout in “a safe, affordable way.”

In September, Grab plans to launch a pilot study in conjunction with property developer Megaworld for drone deliveries in the Philippines. Grab, which hopes to conduct more such studies in the region, has also been testing an autonomous shuttle bus. It partnered with South Korea’s A2Z to launch the service for its employees in Singapore earlier this month.

Announcements about more pilot programs for autonomous vehicles will be made in “a matter of months”, Tan said.

As companies race to dominate the self-driving market, Chinese companies are striking deals around the world in the hope of breaking even and improving economies of scale.

Grab, for example, has recently partnered with China’s WeRide to study the technology.

Such technologies “hypothetically would help reduce costs long term, but it’s way too early to consider that right now” for Grab, said Kai Wang, Asia equity market strategist at Morningstar.

Oey said that Singapore’s tough regulations for taxi licenses mean that it won’t be easy for competitors to penetrate the market in the near term.

“We feel that we’re in a prime position to really lead that charge” when it comes to robotaxis in the city-state, Oey said.

Grab, which makes most of its money from its food delivery and ride-hailing businesses, expects consumer demand for its services to hold up despite economic headwinds. The Singapore-based company has backed its revenue and Ebitda guidance for the year.

Its investments into products focused on affordability seem to have paid off during a time of uncertainty.

Saver rides, which now account for a third of transactions in the segment, helped Grab attract a significant number of new users.

Initiatives such as group orders and family accounts for deliveries also reported strong growth. Subscribers of Grab’s loyalty program have also been driving higher average spending and order frequency, it said.

“You can always create great products, but if you can’t make it affordable, it’s tough,” Oey said.

Grab also rolled out AI tools for merchants and drivers, which have helped increase their earnings, Oey said. Regional corporate costs, which include cloud and software spending, are expected to rise by about 10%-12% for 2025. But Oey said that the increase remains within expectations, given their boost to Grab’s topline growth.

“We’re obviously going to continue to drive profitability. It’s really important for us,” Oey said.

While Grab’s customer base is still expanding, Morningstar’s Wang said that growth could decelerate after 2025 as existing markets become more saturated.

“Expanding significantly beyond their specified margin targets could be challenging given the user acquisition costs needed to attain incremental customers,” Wang said.

Reporting a dip of 3.4 percent or 2.6 percent in organic terms in first-half sales, offset by a strong DTC performance, the executive said the Ermenegildo Zegna Group is focusing on this channel, eyeing global expansion with Temasek’s partnership and fine-tuning brand presence across key markets

MILAN — A day after revealing Temasek Holdings’ investment in the company, the Ermenegildo Zegna Group on Wednesday reported revenues of 927.7 million euros in the first half of the year. This is a 3.4 percent decrease from 960.1 million euros in the same period in 2023. In the second quarter, revenues fell 5.7 percent to 468.9 million euros, dented by the appreciation of the euro. In organic terms, they were down 2.6 percent.

In an interview, chairman and chief executive officer Gildo Zegna said the performance was impacted by “our choice to streamline our wholesale channel, but the decrease was offset by a strong direct-to-consumer business, up 8 percent in organic terms in the second quarter, even beyond our expectations.” Also, the Americas and the Middle East contributed to balance the ongoing slowdown and volatility in China, he said.

To be sure, in organic terms, the Zegna and Thom Browne brands each grew by 7 percent in the DTC channel while Tom Ford Fashion was up 11 percent.

“We are not worried about the tariffs [imposed by the U.S. government], it’s a level that we can absorb,” Zegna said. “We have already made some adjustments to our prices in June.”

The main challenges he sees going forward derive from the “geopolitical situation. I am relatively serene about the rest. We have the right foundations to do quite well in the second half, barring extraordinary events, and I am certain we will grow in the medium term.”

As of Wednesday, the Singapore-based investment company Temasek holds a 10 percent stake in the Italian group, and Zegna during the interview elaborated on the partnership. “It allows us to strengthen our organic expansion globally as a long-term partner, leveraging Temasek’s knowledge of the Asian market.”

He said the relationship with Temasek dates back years, and expressed his pride and pleasure in being chosen for the investment. “They were looking for a strong Made in Italy brand. They are well-established at a global level and this partnership gives me confidence. Temasek is customer-centric, they have experience in hospitality, in retailing with the Paragon mall, they have invested in luxury in Moncler, and they will help us expand in the Far East, which is still underdeveloped.”

The executive added that a Salotto Zegna, reserved for Su Misura and personalization, opened in Singapore a month ago. Asked if he would plan a runway show in Singapore, after Dubai’s spring 2026 collection unveiled in June, Zegna said his namesake brand will return to Milan in January but that he would consider an event in the Asian city and that he is planning one for the Formula 1 Grand Prix there in October.

“I want to clarify that the Zegna family did not sell shares to Temasek and that there is absolutely no plan to delist” from the New York Stock Exchange, he concluded.

Sam Lobban Confirmed as New Thom Browne CEO

Zegna confirmed a WWD scoop posted earlier on Wednesday about Thom Browne CEO Rodrigo Bazan exiting the brand on Aug. 31. He will be succeeded by Sam Lobban, currently serving as executive vice president and general merchandising manager for apparel and designer at Nordstrom. Zegna praised Lobban’s “extensive background in merchandising and his customer-first mindset. This is the right choice, he is very competent and loves the brand, he has all the assets to do well.”

Lobban will be based in New York. At the same time, Zegna made a point to thank Bazan for leading Thom Browne since 2016, growing its sales threefold.

Asked about the recent declines in sales at that brand, Zegna said the market has changed and that “we are ready with a different business model, we had grown too much with wholesale and we have strengthened the brand’s retail channel, modeling our strategy after the Zegna brand’s.”

There are 120 Thom Browne stores and Zegna admitted “there are a few too many in China, and we need to develop the accessories segment and increase business in the U.S. and Europe. I am confident we will succeed.”

Thom Browne earlier this month opened an accessories only store on Madison Avenue in Manhattan.

Sales by Brand

In the first six months ended June 30, sales of the Zegna brand inched up 0.8 percent to 570.4 million euros, while Thom Browne sales fell 22.5 percent to 129.2 million euros.

Tom Ford Fashion rose 2.8 percent to 152.7 million euros. Haider Ackermann debuted his first collection as creative director of Tom Ford during Paris Fashion Week on March 5 to unveil the brand’s fall 2025 collection.

The textile segment was down 6.6 percent to 67 million euros, largely reflecting declining orders from brands outside the group.

Sales by Distribution

In the first half, group DTC revenues rose 4.2 percent to 698 million euros, representing 82 percent of the group’s branded product revenues.

Zegna’s DTC revenues grew 3.7 percent at current exchange rates to 504.5 million euros, driven by the Americas with strong double-digit growth, accelerating in the second quarter, followed by solid double-digit growth in the Europe, Middle East and Africa region, in particular in the Middle East. Performance in the DTC channel in the Greater China region in the second half remained negative and broadly in line with the first quarter.

On June 30, Zegna counted 286 directly operated stores, including an additional store in Dubai Mall (Level Shoes) and in Porto Cervo, Italy.

Thom Browne DTC revenues rose 3 percent to 92.6 million euros, driven by performance in the Americas. In the second quarter, the brand opened stores in Los Angeles Melrose, New York Madison and Tokyo Ginza.

Tom Ford Fashion DTC revenues climbed 8.4 percent to 100.9 million euros with all regions showing positive organic performance and EMEA delivering the strongest results. The brand has 66 directly operated stores, with one net opening in the second quarter in Hong Kong Pacific Place.

In the first half, group wholesale branded revenues fell 27.1 percent to 154.2 million euros.

Zegna wholesale revenues were down 17.1 percent to 65.9 million euros, due to the conversion into retail concessions of some stores and a shift in delivery timing.

Thom Browne wholesale revenues were slashed by 52.4 percent to 36.5 million euros, as per the strategy to streamline the brand’s wholesale presence to focus on the DTC channel.

Tom Ford Fashion wholesale revenues were down 6.5 percent to 51.8 million euros, mainly driven by some previous conversions of stores into retail concessions.

Zegna touted “a good balance of each brand by geography. In 2026, we need to continue to fine tune this in each market.” He expects volatility to continue in 2026 but believes “spaces will open globally and we can catch new opportunities,” eyeing for example openings in Paris for Tom Ford and Thom Browne.

Sales by Region

In the first half, group revenues in EMEA were down 2.3 percent to 328.9 million euros, representing 35 percent of the total, dented by the negative results in the wholesale channel at the three brands. The chairman and CEO said the group had not been impacted by a slowdown in tourism.

Sales in the Americas rose 6.8 percent to 262.7 million euros, accounting for 28 percent of the total, driven by the strong performance of the Zegna and Thom Browne DTC channel. Zegna cited Brazil and Mexico as strongly contributing to the performance in the Americas.

Revenues in the Greater China region decreased 16.2 percent to 223.1 million euros, representing 24 percent of the total. The performance was still impacted by a subdued consumer environment in the region. “This has become the new norm, we have to become more equipped to manage it,” said Zegna. “China for the Zegna brand remains the most important market followed by the U.S. and we continue to believe in it, investing in a careful way.”

Sales in the rest of Asia-Pacific were up 1.4 percent to 111.5 million euros, accounting for 12 percent of the total, reporting a demanding base of comparison in Japan for the whole sector and a more subdued consumer confidence in South Korea.