Grab last quarter loss indeed is bad for their business.
Nevertheless, every business need time to build.up.
Grab will not solely depends on their so called taxi service as their main driver of revenue.
1. Look at the financial services that they embarked on with Singtel.
2. Transportation - not only on the taxi service currently they are offering. Below are the highly potential growth they are emarking:
2.1 Grocery delivery - Supermarket direct delivery for B to B and B to C.
2.2 Parceldelivery - Potentially acquire new business due to the fleet of diversity of drivers they have in the SEA market.
3. Online payment - one of the biggest pie in SEA. Digital payment is the upcoming payment type. Even emerging markets are on digital payment.
4. Financial services - Micro financial services and SME financial services will be another big bang to Grab since the Singapore license was awarded last year.
As a whole, Grab maybe not profitable for now. Which most businesses are always the case. It is the potential that makes the difference.
The above are just my personal views and opinions. It does not entail any investment advice.
Comments