Grab: Moment of Truth
As 25 Aug heralds its earnings call, it is the moment where investors will see whether what it has done classifies it has a good company which is "here to stay". It will also show its road ahead, whether it will recover its losses, or as nay-sayers like to say, will continue to burn money.
Grab has been a magnet for criticism, being called a company with no good business model and one that, well, does not have the consumer at heart. Its transport sector has the highest surcharges amongst its competitors as well as highest commissions collected from its drivers. The very heart of Grab consists of its drivers (resources) and consumers, of which Grab doesn't seem to be taking care of.
It has been for that very reason (lack of drivers) that its business has not performed so well. It has tried to circumvent this issue by reducing waiting time (there by increasing the number of rides) but it has only served to displease consumers. Objectively, I have found Gojek more palatable to use.
Finally, as an investor, who can forget its initial fall from grace at $17 to its lows of $2.
So...why am I still bullish on$Grab Holdings(GRAB)$? Well, despite its kinks, I believe that the business as a "superapp" is here to stay. It has woven itself into almost everyone's daily lives. I see "Grab" everywhere on the streets and it is definitely not a business which will just go away. So that's why tomorrow, it will be time for me to take stock to find out if I'm right. I have slowly accumulated my holdings these few months and I'm long on this stock but I'm prepared to sell if they aren't doing well.
What are your thoughts on this?
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