Grab Holdings Limited fell 7.8% in early trading on Wednesday following an announcement that Singapore's Land Transport Authority will investigate the supply of taxi and ride-hailing services as part of a review of the point-to-point industry structure and regulatory framework.
The Land Transport Agency said it wants to improve the stability of point-to-point supply over the course of the day, such as during late-night hours where there are some shortages in the supply of rides. "As point-to-point services become more important in the daily lives of Singaporeans, operators must be able to provide these services with minimal disruptions and downtime," noted the regulator.
With its second quarter earnings report, Grab Holdings (GRAB) reported revenue rose 77% to $567M. The company's net loss narrowed to $135M from $547M a year ago.
Shares of Grab Holdings (GRAB) were down 7.8% at 10:40 a.m. to erase gains built up over the last three weeks. The ride-haling and food delivery stock is still slightly up for the year. Short interest on GRAB is at 5.12% of the total float.