To The Moon

$Grab Holdings(GRAB)$A good amount of GMV growth is still fueled by incentives and perks. With a net cash of only 2.6billion, Grab will be forced to cut down incentives, and from here you can see what is the true GMV.

Food delivery industry itself a very competitive sector. In Singapore we have Food Panda, Deliveroo and Grab food. In Indo we have Go-To (merger of tokopedia and Gojek). The markets that Grab serves in are unlike Uber. These countries are more densely populated and food can be obtained relatively easier. I really wonder what is the true demand for food delivery and how much are consumers willing to pay.

In terms of PS valuation, Grab is more expensive than Uber and Meituan, both companies which have grown past the J-curve and exhibiting the flywheel effect! Whereas Grab is still struggling with high HQ cost with their newly built HQ building in SG. Most analysts'estimated Grab can only turn profitable in 2025. Before that, i wonder how long Grab's balance sheet allow such level of cash burn.