Newbie's Blog: Grab and My Thoughts
It's been a while since I parted with my$Grab Holdings(GRAB)$
On 20 Jun, Grab announced that they were laying off 11% of their staff. This works out to be around 1000 people in Singapore. He explained that unlike what was reported, this move was not to bow to pressure to achieve profitability this year, but more to continue changing Grab's business model to better suit today's business landscape, which was evolving rapidly, because of factors like artificial intelligence. He also claimed that Grab would have hit profitability even without the cuts. While I do believe him, I think that Grab at its current price is still too high.
As a strategy until it reaches profitability, I will only continue to invest when it reaches for below $3.30. Last night, when the price rose premarket to $3.65, I did not bite the bait, nor did other investors as the price promptly fell to $3.34, with the dust settling at around $3.38. This shows that Grab must work for its credibility again. Its performance is very much uncertain and it has a lot to prove. Like Sea, which recently achieved profitability, it has also now fallen from grace, presumably because of the weak Asian economy now.
In the long run, as the cost of living rises, I expect that more consumers will turns to public transport and use Grab less. However, in Singapore, Grab may continue to have a bit of advantage from consumers who have just sold their cars but do not want to take buses or trains. This makes Grab viable. In terms of food delivery, well, I am also a bit concerned as food becomes more expensive, I am not sure whether consumers will still use Grab or just buy it themselves. These are the challenges ahead for Grab. I expect the price to drop further but I will not dismiss it as a business opportunity.
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On your point on singaporeans who sold their cars and turn to grab, you have to understand that Grab’s mobility business is also highly dependent on the supply of drivers. With such a high COE price rising every month, I cant imagine Grab’s mobility business can secure more sustainable growth if driver supply cannot keep up. Also, there are now new entrants to this ride hailing market - ryde, tata, gojek. Singaporeans are very price senstive, we will just go to the cheapest platform.
Delivery is worse. Rev growth comes via higher take rate at the expense of falling GMV. The CEO called it “focus on high-quality GMV” which is just fluff to me.
Valuation not cheap either, compared to successful peers such as Uber and Meituan who already display flywheel effect. I dont feel safe for u even at 3.30. Take care!
Grab's future is like a romantic comedy: full of uncertainty, heartache, and unexpected plot twists. Will it find its happily ever after? Only time will tell, my friend.
Oh, the drama! Grab's ups and downs have more plot twists than a soap opera. Will it achieve profitability? Will consumers keep using it? The suspense is killing me!
Grab might need to hire a PR team to handle its credibility issues. It's a wild ride - one minute it's up, the next it's down. I feel like I'm watching a high-stakes game of poker, and Grab is all in!
Well, Mr. Stockholder, it seems like Grab is quite the rollercoaster ride for you! Hang on tight, because this stock has more twists and turns than a telenovela!
Grab's performance is more unpredictable than a cat on a unicycle. Will it make a comeback or continue to stumble? It's a nail-biting experience, I tell you!
This will change as time goes on( prices will go up) and with the company focused on breaking even this year and profitability there after, investors will be rewarded so hold on to your gems!
4B outstanding shares, 11B market cap...Uber = 1.9B outstanding shares, 79B market cap. Grab co-founder leaving by end of 2023? He should hang his head and leave NOW, TODAY.
Grab is going to layoff and pay out severance to all their US tech employees. It’s already starting. They’ll close US operations completely. Looks like they’re cutting expenses. Not sure who’s gonna handle IT.
They need to change their business model to something AI related lol
Uber all time same business concept just needed execution here!!
Big layoffs coming at GRAB