GRABW - Grab Holdings: Grabbing Market Share In A Sea Of Challenges

2024-06-25 02:43:59 ET

Summary

• Grab is the most popular ride-hailing app in Southeast Asia, except in Indonesia, where Gojek is a significant competitor.
• Grab's delivery segment is its largest source of revenue and just turned profitable only in 2023.
• Grab's financial services segment, including digital banking, is crucial for its vision of becoming a super app in the region.

Investment Thesis

Grab Holdings ( GRAB ) is a developer of a super-app that provides ride-sharing/hailing, delivery and financial services like digital payments and banking.

Right now, only its ride-sharing segment has a long-term track record of profitability. However, given that the company has already captured the majority market share in the Southeast Asian ("SEA") region, it is unclear whether Grab can continue to grow significantly in this segment. Indonesia is the only market in SEA that Grab has yet to gain a majority share in the ride-sharing segment, and it is facing formidable competition, especially from Gojek....

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