🕷️ Crawler Inspector

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Raw Queries and Responses

1. Shard Calculation

Query:

Response:

Calculated Shard: 57 (from laksa160)

2. Crawled Status Check

Query:

curl -X POST \
  'http://laksa057.int.ahrefs:8124/' \
  -H 'Content-Type: text/plain' \
  -H 'X-ClickHouse-Database: crawler3' \
  -H 'Authorization: Basic YXBpOg==' \
  -d 'SELECT getAhrefsURLFromUnparsed(src_unparsed) AS found_url, ifNull(toUnixTimestamp(download_stamp), 0) AS crawl_time, ifNull(toUnixTimestamp(props_url_first_seen), 0) AS first_indexed_time, download_http_code AS http_code, src_unparsed AS src_unparsed, src_root_hash AS src_root_hash, history_drop_reason AS history_drop_reason, meta_title AS meta_title, meta_descriptions AS meta_descriptions, attrs_boilerpipe_text AS attrs_boilerpipe_text, attrs_markdown AS attrs_markdown, attrs_readable_markdown AS attrs_readable_markdown, meta_canonical AS meta_canonical FROM crawler3.page_info_local FINAL PREWHERE (src_root_hash, src_unparsed) IN ((getAhrefsRootHashFromUnparsed(getAhrefsUnparsedNoserviceFromURL(\'https://seekingalpha.com/article/4805856-grab-seas-superapp-destined-for-growth\')), getAhrefsUnparsedNoserviceFromURL(\'https://seekingalpha.com/article/4805856-grab-seas-superapp-destined-for-growth\'))) FORMAT JSONEachRow'

Response:

{"found_url":"https:\/\/seekingalpha.com\/article\/4805856-grab-seas-superapp-destined-for-growth","crawl_time":1775801980,"first_indexed_time":1753852761,"http_code":200,"src_unparsed":"com,seekingalpha!\/article\/4805856-grab-seas-superapp-destined-for-growth s443","src_root_hash":"11478393694123815657","history_drop_reason":null,"meta_title":"Grab: Southeast Asia's SuperApp Destined For Growth (NASDAQ:GRAB) | Seeking Alpha","meta_descriptions":["Grab is a diversified super-app in Southeast Asia, combining ride-hailing, food delivery, and digital payments. Read why GRAB stock is a Strong Buy."],"attrs_boilerpipe_text":"whitebalance.oatt\nGrab (\nGRAB\n) is positioning itself to be the super-app in Southeast Asia (SEA), offering services from ride hailing, food delivery, and digital payments. It combines apps such as Uber, DoorDash, and PayPal, all in one. Their diversified operations and building dominance in SEA create a huge\nbuying opportunity for future potential growth. Grab also has ~$6 billion in cash flow, with a market cap of ~$22 billion, trading around 27% of cash, which stands at $1.44 per share. Grab's growth is not slowing down; being positioned in an unsaturated market, as smaller local firms die down, Grab will capture the majority of the market share. Hence, I'm initiating a 'Strong Buy'.\nThesis\nGrab is to many just SEA's Uber (\nUBER\n), which was also my initial impression, having lived in Malaysia for 14 years. With their diversified operations, Grab is positioning itself in SEA for daily life as everyone is starting to come online. They are positioning themselves with services that are common in Europe and the US, such as ride-hailing, food delivery, financial services, and some e-commerce.\nThis means that their growth potential is high, compared to America's or Europe's, whose markets are getting more and more saturated, whereas SEA's digital adoption is just starting. Uber sold their SEA business to Grab back in 2018, as what Grab can do better than Uber is being more localized and being popular in these regions. Their brand visibility and reliability are only ever increasing, as Uber is no longer a competitor but a shareholder of Grab, which to me shows optimism in Grab to execute in SEA. Grab is a long-term play; it is offering services that are widely available in Europe and the US and offering them in SEA with no competitors like Uber interfering. Demand for these services will simply increase as GDP gets larger and as cities get gentrified, and Grab has positioned itself to be a long-term winner with a potential high CAGR.\nComparing SEA and Europe\nAs I mentioned in my thesis, their growth potential is high operating in SEA compared to the Americas or Europe. I'm going to compare a few metrics to explain why SEA is the next big market that Grab will capitalize on.\nSEA\nEurope\nUS\nPopulation\n~700M\n~744M\n~347M\nForecast 2025 GDP growth\n~4.7%\n~1.1%(EU)\n~1.4%\nMedian Age\n30.9\n44.7(EU)\n~38.5\nSmartphone penetration\n~80%\n89%\n~91%\nBank account ownership\n>70%\n~96%\n~96%\nDigital wallet usage\n~83%\n<20% (Germany and UK)\n~70%\nSEA is growing at a faster pace than Europe and the US, as the economies in SEA are only getting larger. Despite only being 11 countries, their population is only ~44 million less than Europe and is approximately double that of the US. This means their addressable market is only increasing, which is evident in their user growth (explained in the next segment). A higher GDP growth suggests that prices in both Europe and SEA on a constant currency are getting more similar (prices of Grab\/Uber will be similar from point A to B in both locations), as Grab's revenue will increase simply from a growing PPP and income in SEA. Ride-hailing services may also be a luxury to individuals who rely on public transport, as a higher GDP and income will lead to a higher demand for Grab.\nUber Estimate Age Demographics\n(DemandSage)\nThrough surveys, this is the estimated\nage group demand split\nfor Uber. It shows that younger generations have used Uber's ride-hailing services more than older generations. With a significantly lower median age in SEA, I believe that this can be reflected in Grab's demand as well, as Grab stands to gain a larger consumer base than the US and Europe since the median age is lower. There remains substantial room for growth, especially for their financial segments, as smartphone penetration in SEA continues to rise. Increased access to mobile devices is expected to drive further demand for their digital services, such as ride-hailing and digital payments. These statistics also show that the market is more saturated in Europe and the US, as Uber is already well known alongside many competitors, whereas Grab doesn't have to compete with Uber or fear it even enters the market (sold SEA business to Grab in 2018).\nA lower bank account ownership and high digital wallet usage are also good metrics. This strays away from using traditional banking or any credit or debit card, but QR-scanned payments. These are popular in SEA countries like Malaysia, using Touch n GO. This is evident with\n79% mobile wallet payment\nusage in SEA. With a lower banking population, using these super-apps is easy for consumers, as simply scanning a QR code and paying through a smartphone may be smoother than carrying a card. Though cards are still the preferred method of paying, high digital adoption leads to more loan and payment growth potential. This differs from major cities like London, where paying with cards is the most widely used option, rather than scanning a QR code at a roadside store. Digital wallet has a wide presence in SEA through these QR code payments, which GrabPay can capitalize on. (Apple Pay counts as a digital wallet payment but is a card payment. SEA countries like Malaysia's digital wallet refer to scanning a QR code and paying through the third-party app.)\nGrab's ride-hailing segment\nGrab can dominate the SEA region, as Uber left the region due to Grab being able to offer services that are appropriate for each local region. For example, in Indonesia, their\ntotal motorcycles are up to 112M\n, compared to 8.6M in the US, as Southeast Asia countries also top most of the chart. Certain figures also show that th\ne 2-wheeler is significantly preferred over the 4-wheeler.\nGrab's offering motor ride-hailing services is just 1 example of how Uber's glocalization didn't work as it couldn't get up to standard and adapt to SEA's lifestyle, which Grab can.\nUber couldn't reflect each country's cultural values, as their glocalization failed. They had cash to invest and burn but couldn't figure out how to retain users.\nProfit\/Loss in Q1 2025\n(Grab's Investor Relations)\nThis is seen as Grab continues to burn cash and only recently turned a profit in Q1 2025 earnings. In Malaysia 2021, Grab had\n94% market share\nwhilst 32 other registered e-hailing apps (yes, 32 apps) had the other 6%. Grab's market share is now over\n95% for ride hailing and 50% for food delivery\n, still maintaining its dominant position. All these other apps have 1 similarity and 1 difference to Grab; all firms can match local cultures, but the other firms do not have the same amount of cash as Grab to burn. Both factors (culture and cash flow) are important is because Uber had cash to burn but couldn't appeal to local cultures.\nFrom this view, it may be seen as hard for Grab to actually retain its customers, because competition can easily come in and compete with Grab. However, I would disagree. These small firms, as margins shrink and user base retention falls, will exit the market due to profitability issues, or simply be limited to their small market share. This is seen in 2024 as\nGojek exited Vietnam\ndue to struggling to achieve profitability despite '\naggressive efforts, including promotions and localization strategies\n'. In the long term, I feel, these smaller firms will simply die out, and the challenge that Grab has is to maintain and increase retention for its existing user base.\nMore examples to back up this claim with Uber leaving SEA and Gojek leaving Vietnam are also\nGojek leaving Thailand (did losses in 2019 and 2020)\nand\nFoodpanda leaving Thailand.\nSmaller firms like Maxim also face regulatory issues,\ntold to cease operations\nbut are now able to\noperate under probation\n. These businesses face the risk of not even being able to operate at all, which doesn't show the stability like Grab. Most e-hailing apps are simply not as widely available as Grab, as Grab still maintains its market share and has more users and drivers.\nThe idea for these smaller firms is simply to have small and limited operations for specific areas and be profitable for these small firms, or attempt to expand nationwide and not be profitable (examples above with Foodpanda and Gojek). Grab has maintained its market share in ride-hailing, as mentioned above, from 2021 to 2024. It is unlikely their user base will get affected, as Grab runs the majority of the ride-hailing operations in SEA, as Grab's position remains dominant.\nGrab's users\nGrab's Platform Transacting Users\n(Grab's Investor Relations)\nGrab's user growth shows that their promotions and burning cash to retain their user base have been successful. This is a huge green flag for Grab trying to build a super-app, as they try to integrate into people's everyday lives, especially for a firm operating in business-to-consumer (B2C). I believe that higher smartphone penetration, more exposure to the digital world, and people needing services such as mobility and deliveries, all lead to a higher user base. With so much B2C choice in SEA and Grab being able to maintain growth, while turning a profit in Q1, this means that this growth is just starting. 119 million of a 700 million population is also only 17% penetration on a yearly metric, and only ~6.4% on a monthly metric. This shows that Grab has so much more room to grow, as the integration of technology similar to Europe and the US through technology transfer is just starting, as smartphone penetration and bank account ownership are all still lower than in Europe and the US (table above).\nFor the next few quarters, key metrics such as maintaining users as well as its profit margin are things to look out for, as the adoption of Grab services is trending upwards. Since in a B2C model consumers can just swap to a different service, it is essential for user growth to trend upwards and Grab maintain their dominant position.\nGrab's financial services segment\nGrab offers services such as GrabPay, lending, digital banking (GXS Bank) and insurance. Grab has guided for this segment to\nbreak even by 2026\n, as this is currently trading at a negative adjusted EBITDA. In\nQ4 2024 earnings\n, it was noted that '\n90% of the GXS Bank customers in Malaysia came from Grab and the acquisition cost is minimal. The speed at which we've been able to gather deposits and open new accounts we're now up to 4 million new accounts\n'.\nThis shows that this has huge potential for further growth. Users familiar with Grab mobility or delivery services might try Grab's financial services first if they don't have a bank account, as the reliable app is already at the front of their minds. With their proven consistent user growth in mobility and delivery, this can translate to their financial services user growth. When adjusted EBITDA is no longer negative, it could be a high-growth high-margin business.\nFinancial Services Revenue and Adjusted EBITDA Change YoY\n(Grab's Investor Relations)\nIn Q1 2025, revenue grew by 36%, with the loan portfolio growing by 56%, all impressive numbers. It is now all about execution, as seen in their adjusted EBITDA%, which has also been falling.\n2025 Guidance\n(Grab's Investor Relations)\nIf next quarter's results beat estimates and align with the updated guidance shown in Q1 of a 47%-53% YoY increase in Group Adjusted EBITDA, Grab should look to comfortably achieve its goal of positive adjusted EBITDA by 2026. A thing to note for future earnings is user growth as well, as user growth needs to continue for the financial segment to grow (using mobility\/delivery services leads to trying financial services as well). More users also create a larger network effect, as when more people start using GrabPay to transfer money like PayPal, it will attract more users to Grab.\nJust to keep in mind, the long-term potential and penetration are massive, as GDP per capita rises fast and bank usage is low. In China, Alipay is a huge success, and Grab is sort of trying to replicate paying through GrabPay. SEA is an emerging market where demand will only increase for fintech and ride-hailing services as the cities get more and more advanced, as the potential addressable market is hundreds of millions of users that still have no exposure to Grab fintech products.\nGrab and Uber\nCompetition might be high as local businesses adapt to food delivery and such services, but Grab still has the majority market share in SEA. A risk in these scenarios is that the huge US firms to expand into SEA and dominate the market, as Uber has in this scenario. However, Uber has worked with Grab since 2018, so there should be no fear that a huge firm will come in and compete with Grab, as Uber owns\n~14% of Grab.\nAnother positive is that Dara Khosrowshahi, Uber's CEO, is on the\nboard of directors for Grab,\nas Grab is able to have direct help and navigation with Uber's success in the ride-hailing industry. There is still a chance that an established firm might enter the SEA market, but with Uber's failed attempt, there will be huge doubts for any new entrant. With no real competitors in the market for most of SEA, Grab's market share is highly unlikely to be negatively affected in the long term, especially for ride-hailing, maintaining its dominance.\nGrab acquiring GoTo implications\nGoTo (or Gojek) is Grab's competitor when it comes to food delivery services, as mentioned above, Grab has ~50%, while GoTo held ~10.5% back in 2023. Grab has been in talks with GoTo to acquire their operations\nsince 2021\n, as investors speculate that the acquisition will happen because of Grab's large free cash flow. Sources say that Grab and GoTo have been in\nadvanced talks\nin Feb this year, also\neyeing up a loan\nback in March. Grab's cash has to go somewhere, and GoTo is one of the top choices to potentially monopolize the ride-hailing and delivery industries in SEA, as their market share in Indonesia could be\nas high as over 90%\n.\nThe main component Grab is targeting is GoTo's Indonesia operations, as Grab holds\n~70% of ride-hailing market share\nin SEA, while GoTo holds ~60% in Indonesia and a '\nsignificant portion of food delivery through GoFood.'\nIndonesia being the largest GDP in all of SEA means that Grab is facing competition in the largest addressable market in SEA. If Grab does acquire GoTo, their dominance in SEA will get larger. GoTo has already exited multiple SEA markets (mentioned above), and the only market Grab has to compete with GoTo is Indonesia (GoTo has a dominant position over Grab). This will heavily benefit Grab if the deal executes, as in the long term, Grab would only compete with smaller local firms as Grab will maintain its user base and continue to capture the majority of the market share (referring back to the argument that Grab has cash to burn and others don't, so Grab can retain more potential customers if GoTo is no longer competition). I would like to see Grab acquire GoTo as soon as possible, as Grab will heavily benefit from this deal in the long term.\nRisks\nGrab did not repurchase any shares in Q1 and issued a\n$1.25B convertible senior note\nupped to $1.5B, to raise cash shows that Grab is planning something big in my view, such as acquiring GoTo (Gojek), a major player in Indonesia. Mentioned previously of poor margins and high competition,\nGoTo has been down 85% all time\n. I believe Grab, in the long term, will benefit from this acquisition if it happens, but execution risk still exists when such a deal\/acquisition takes place if it does.\nThey are raising more cash, which could suggest that Grab could overpay for GoTo, despite their market cap near its bottom. However, if Grab executes this at a good price and does not overpay, Grab's investor confidence will increase significantly. Grab and GoTo also have\nregulatory pressure\n, as more time may be needed for Grab to complete the deal, which may decrease investor confidence (I believe investors want GoTo under Grab to increase market dominance).\nGrab has also denied reports\nof any discussion between the parties, as this may lead to lower long-term optimism if Grab faces competition with Gojek in some SEA countries such as Indonesia.\nAnother risk is that SEA doesn't have fully developed public transport yet, which may lower Grab's demand as trains\/trams may be more suitable and cheaper for individuals when they are widely available. Malaysia is the\n3rd biggest SEA\ncountry in terms of GDP per capita, with a capital (Kuala Lumpur) that has a good public transport system. Now focusing on a specific Malaysian state, Penang, is home to high foreign direct investment (FDI) inflows into the state, including US tech firms such as Lam Research (\nLRCX\n), Intel (\nINTC\n), Dell (\nDELL\n), and many more. Penang has high inflows of FDI as well as being ranked\ntop 3-5 in terms\nof GDP and GDP per capita among Malaysian states and territories. However, they don't have a developed public transport system. Something to point out on the stats: Kuala Lumpur and Labuan are top 5 but are not Malaysian states. Kuala Lumpur is a territory in Selangor, and Labuan is a territory in Sabah, as Penang ranks high in both metrics in terms of Malaysian states, only really behind Selangor (which has KL capital).\nIn Penang, there are 2 sides, one that is with the mainland (island 1) and one that is not, connected by a bridge (island 2). The capital is on island 2 and away from the mainland. Island 2 has no rail systems throughout the whole city, and only recently started construction within island 2 and is\nexpected to be ready in 2031\n. The only existing rail system in Penang is on island 1 in the corner of the state, connecting Penang to the country's capital, Kuala Lumpur. To travel from island 1 to 2, it is only via car (drive yourself or Grab), bus, or ferry. There are also no plans to link one island to the other today via a rail system.\nThis is one example, but the idea is that Grab can penetrate these markets because their public transport systems are so underdeveloped. Individuals may be forced to use Grab during certain times, such as when the bus stops running or a location far away from buses. This is a long-term risk, as when public transport systems get more developed for SEA countries and for smaller cities such as Penang, Grab's demand will fall as users have more choices. Being cheaper with minimal changes to users' daily lives, trains may be the first choice for Grab. If Grab sees a noticeable demand decline due to increased public transport availability throughout SEA, it will show that Grab services are no longer needed as the norm for some individuals, but as a luxury.\nAnother long-term risk is full self-driving (FSD), as Tesla Robotaxi and Alphabet's Waymo are already launching in the US with hundreds of thousands of paid rides weekly. With a lower cost for FSD, regular hailing service will be obsolete if FSD is at full scale. However, a key thing to note for this risk is location. This is SEA, not Europe or the US. Motorcycles are widespread, and roads could be argued to be more dangerous, being flooded by motorcycles and uneven roads. FSD will need to be fully developed and launched in Europe and the US to even start considering dropping it in SEA due to its different road conditions, as this may be a risk whenever FSD is a norm in society in Western countries. With Uber partnering up with Waymo, Uber's participation in Grab could lead to FSD being brought over to SEA, which will be run on Grab's platform anyway, as Grab is already the dominant player with ties to Uber.\nValuation\nGrab's Valuation Metric\n(Seeking Alpha Valuation Tab)\nGrab from a P\/E GAAP basis could seem overvalued, considering Uber, Lyft, and DoorDash trades at forward P\/E of ~32, ~65, and ~112, Grab does look a little bit expensive.\nGrab is a long-term play, as the potential customers for SEA is so large, and Grab is just starting. Uber, Lyft (\nLYFT\n), and DoorDash (\nDASH\n) are already established players operating in saturated markets. Grab is also building a 'super-app', combining fintech, ride hailing, and mobility. Their revenue growth for any segment isn't slowing down, and will only get better as exposure gets larger.\nGrab also trades with a huge cash flow, more than 30% of their market cap, which, after debt, none of the firms can compare to. With sources estimating that Grab will\ntrade at a P\/E of 41\nby the end of 2027, Grab is not that expensive considering that their financial segment is still at a negative adjusted EBITDA. Once this is positive and Grab is able to show it can be positive by 2026 (direction is heading that way), Grab's long-term user\/revenue trajectory as SEA starts adopting digital services could be double or triple.\nConclusion\nGrab is a long-term play, betting on the idea that Grab can execute in SEA as the next super-app despite high local competition that can undercut their prices. Their revenue and adjusted EBITDA are all trending in the right direction, as they continue to dominate the mobility and delivery markets. It is only time before smaller local players can't keep up with Grab, as they are limited to their small market share and lower revenue.\nWith their next earnings report in a few weeks, we will have more clarity on Grab's trajectory and whether it is still maintaining its forecast of 2026 positive adjusted EBITDA, which the trend should be perfectly in line with as Q1 showed their stable user growth. Grab is already the dominant player in SEA, will maintain its dominant position as offering products that are not widely common and available in SEA, yet creates high-growth potential for Grab, and it is just starting.\n1.93K Followers\nAnalyst’s Disclosure:\nI\/we have a beneficial long position in the shares of GRAB either through stock ownership, options, or other derivatives.\nI wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.\nSeeking Alpha's Disclosure:\nPast performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.","attrs_markdown":"[Skip to content](https:\/\/seekingalpha.com\/article\/4805856-grab-seas-superapp-destined-for-growth#content)\n\n[Home page Seeking Alpha - Power to Investors](https:\/\/seekingalpha.com\/#source=source%3Asite_navigation)\n\n- Create Free Account\n- [About Premium](https:\/\/seekingalpha.com\/subscriptions\/premium#source=why_premium%3Aexpanded%3Anavbar_left)\n- [Explore Alpha Picks](https:\/\/subscriptions.seekingalpha.com\/lp_alpha-picks_sub\/#source=explore_alpha_picks%3Aexpanded%3Anavbar_left)\n- [NEW Summary report](https:\/\/seekingalpha.com\/subscriptions\/premium-virtual-analyst-report#source=virtual_analyst_report%3Aexpanded%3Anavbar_left)\n- [FREE Newsletters](https:\/\/seekingalpha.com\/free-investing-newsletters#source=free_newsletters%3Aexpanded%3Anavbar_left)\n\n- [Home](https:\/\/seekingalpha.com\/#source=home%3Aexpanded%3Anavbar_left)\n- [Stock Analysis](https:\/\/seekingalpha.com\/latest-articles#source=analysis%3Aexpanded%3Anavbar_left)\n  \n  ## Stock Analysis\n  - 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[Key Market Data](https:\/\/seekingalpha.com\/etfs-and-funds\/etf-tables\/key_markets#source=key_markets%3Aexpanded%3Anavbar_left)\n  - [Earnings Calendar](https:\/\/seekingalpha.com\/earnings\/earnings-calendar#source=earnings_calendar%3Aexpanded%3Anavbar_left)\n  - [Currencies](https:\/\/seekingalpha.com\/etfs-and-funds\/etf-tables\/currencies#source=currencies%3Aexpanded%3Anavbar_left)\n  - [Cryptocurrency Prices](https:\/\/seekingalpha.com\/etfs-and-funds\/etf-tables\/cryptocurrency#source=cryptocurrency_prices%3Aexpanded%3Anavbar_left)\n- [Sectors](https:\/\/seekingalpha.com\/sectors#source=sectors%3Aexpanded%3Anavbar_left)\n  \n  ## Sectors\n  - [Technology](https:\/\/seekingalpha.com\/sectors\/technology#source=technology%3Aexpanded%3Anavbar_left)\n  - [Financial](https:\/\/seekingalpha.com\/sectors\/financial#source=financial%3Aexpanded%3Anavbar_left)\n  - [Consumer Discretionary](https:\/\/seekingalpha.com\/sectors\/consumer-discretionary#source=consumer_discretionary%3Aexpanded%3Anavbar_left)\n  - 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[Top Dividend Stocks](https:\/\/seekingalpha.com\/screeners\/9679329c-Top-Dividend-Stocks#source=top_dividend_stocks%3Aexpanded%3Anavbar_left)\n  - [Top Quant Dividend Stocks](https:\/\/seekingalpha.com\/screeners\/9408317dce-Top-Quant-Dividend-Stocks#source=top_quant_dividend_stocks%3Aexpanded%3Anavbar_left)\n  - [Dividend Ideas](https:\/\/seekingalpha.com\/dividends\/dividend-ideas#source=dividend_ideas%3Aexpanded%3Anavbar_left)\n  - [Dividend Quick Picks](https:\/\/seekingalpha.com\/dividends\/dividend-quick-picks#source=dividend_quick_picks%3Aexpanded%3Anavbar_left)\n  - [Dividend Strategy](https:\/\/seekingalpha.com\/dividends\/dividend-strategy#source=dividend_strategy%3Aexpanded%3Anavbar_left)\n  - [Dividend News - Funds](https:\/\/seekingalpha.com\/market-news\/dividend-funds#source=dividend_news_funds%3Aexpanded%3Anavbar_left)\n  - [Dividend News - Stocks](https:\/\/seekingalpha.com\/market-news\/dividend-stocks#source=dividend_news_stocks%3Aexpanded%3Anavbar_left)\n  - [Dividends Data](https:\/\/seekingalpha.com\/etfs-and-funds\/etf-tables\/dividends#source=etf_dividends%3Aexpanded%3Anavbar_left)\n- [ETFs](https:\/\/seekingalpha.com\/etfs-and-funds#source=etfs%3Aexpanded%3Anavbar_left)\n  \n  ## ETFs\n  - [Top Rated ETFs](https:\/\/seekingalpha.com\/screeners\/etfs\/922b797269-Top-Rated-ETFs#source=top_rated_etfs%3Aexpanded%3Anavbar_left)\n  - [ETF Strategies](https:\/\/seekingalpha.com\/etfs-and-funds\/etf-tables\/strategies#source=etf_strategies%3Aexpanded%3Anavbar_left)\n  - [REITs & Real Estate ETFs](https:\/\/seekingalpha.com\/etfs-and-funds\/etf-tables\/real_estate#source=reits_real_estate_etfs%3Aexpanded%3Anavbar_left)\n  - [Commodity ETFs](https:\/\/seekingalpha.com\/etfs-and-funds\/etf-tables\/commodities#source=commodity_etfs%3Aexpanded%3Anavbar_left)\n  - [Emerging Markets ETFs](https:\/\/seekingalpha.com\/etfs-and-funds\/etf-tables\/emerging_markets#source=emerging_markets_etfs%3Aexpanded%3Anavbar_left)\n  - [Growth vs. Value ETFs](https:\/\/seekingalpha.com\/etfs-and-funds\/etf-tables\/growth_vs_value#source=growth_vs_value_etfs%3Aexpanded%3Anavbar_left)\n  - [Bonds](https:\/\/seekingalpha.com\/etfs-and-funds\/etf-tables\/bonds#source=bonds%3Aexpanded%3Anavbar_left)\n  - [Country ETFs](https:\/\/seekingalpha.com\/etfs-and-funds\/etf-tables\/countries#source=countries_etfs%3Aexpanded%3Anavbar_left)\n- [Earnings](https:\/\/seekingalpha.com\/market-news\/earnings#source=earnings%3Aexpanded%3Anavbar_left)\n  \n  ## Earnings\n  - [Earnings Calendar](https:\/\/seekingalpha.com\/earnings\/earnings-calendar#source=earnings_calendar%3Aexpanded%3Anavbar_left)\n  - [Earnings Call Transcripts](https:\/\/seekingalpha.com\/earnings\/earnings-call-transcripts#source=earnings_call_transcripts%3Aexpanded%3Anavbar_left)\n  - [Earnings Call Insights](https:\/\/seekingalpha.com\/market-news\/earnings-calls-insights#source=earnings_call_insights%3Aexpanded%3Anavbar_left)\n- [Education](https:\/\/seekingalpha.com\/investing-resources#source=education%3Aexpanded%3Anavbar_left)\n- [Podcasts](https:\/\/seekingalpha.com\/podcasts#source=podcasts%3Aexpanded%3Anavbar_left)\n- [Videos](https:\/\/seekingalpha.com\/videos#source=videos%3Aexpanded%3Anavbar_left)\n\n## Investing Groups\n- [Explore Investing Groups](https:\/\/seekingalpha.com\/marketplace\/directory#source=investing_groups%3Aexpanded%3Anavbar_left)\n\n## Portfolios\n- [Create Portfolio\\+](https:\/\/seekingalpha.com\/account\/portfolio#source=create_first_portfolio%3Aexpanded%3Anavbar_left)\n- [Portfolio Health Check](https:\/\/seekingalpha.com\/portfolio-health-check#source=portfolio_health_check%3Aexpanded%3Anavbar_left)\n- [About Portfolio](https:\/\/subscriptions.seekingalpha.com\/portfolio_about\/#source=about_portfolio%3Aexpanded%3Anavbar_left)\n\n## Find & Compare\n- [Stock Screener](https:\/\/seekingalpha.com\/screeners#source=stock_screener%3Aexpanded%3Anavbar_left)\n  \n  ## Stock Screener\n  - [All Stocks](https:\/\/seekingalpha.com\/screeners\/967aaa441702-All-Stocks#source=all_stocks%3Aexpanded%3Anavbar_left)\n  - [Top Rated Stocks](https:\/\/seekingalpha.com\/screeners\/96793299-Top-Rated-Stocks#source=top_rated_stocks%3Aexpanded%3Anavbar_left)\n  - [Top Growth Stocks](https:\/\/seekingalpha.com\/screeners\/9679348d-Top-Growth-Stocks#source=top_growth_stocks%3Aexpanded%3Anavbar_left)\n  - [Top Value Stocks](https:\/\/seekingalpha.com\/screeners\/96793482-Top-Value-Stocks#source=top_value_stocks%3Aexpanded%3Anavbar_left)\n  - [Top Small Cap Stocks](https:\/\/seekingalpha.com\/screeners\/967930eb-Top-Small-Cap-Stocks#source=top_small_cap_stocks%3Aexpanded%3Anavbar_left)\n  - [Stocks by Quant](https:\/\/seekingalpha.com\/screeners\/95b9990b-Stocks-by-Quant#source=stocks_by_quant%3Aexpanded%3Anavbar_left)\n  - [Most Shorted Stocks](https:\/\/seekingalpha.com\/screeners\/940d08e1dd-Most-Shorted-Stocks#source=most_shorted_stocks%3Aexpanded%3Anavbar_left)\n  - [Strong Buy Stocks - Short Squeeze](https:\/\/seekingalpha.com\/screeners\/940d0c9cca-Strong-Buy-Stocks-With-Short-Squeeze-Potential#source=strong_buy_stocks_short_squeeze%3Aexpanded%3Anavbar_left)\n  - [Top REITs](https:\/\/seekingalpha.com\/screeners\/9ecfb4dfa7-Top-REITs#source=top_reits%3Aexpanded%3Anavbar_left)\n- [ETF Screener](https:\/\/seekingalpha.com\/screeners\/etfs#source=etf_screener%3Aexpanded%3Anavbar_left)\n  \n  ## ETF Screener\n  - [All ETFs](https:\/\/seekingalpha.com\/screeners\/etfs\/967aaa441700-All-ETFs#source=all_etfs%3Aexpanded%3Anavbar_left)\n  - [Top Alternative ETFs](https:\/\/seekingalpha.com\/screeners\/etfs\/922b7973d1-Top-Alternative-ETFs#source=top_alternative_etfs%3Aexpanded%3Anavbar_left)\n  - [Top Commodities ETFs](https:\/\/seekingalpha.com\/screeners\/etfs\/922b7973d0-Top-Commodities-ETFs#source=top_commodities_etfs%3Aexpanded%3Anavbar_left)\n  - [Top International Equities ETFs](https:\/\/seekingalpha.com\/screeners\/etfs\/922b7973d4-Top-International-Equity-ETFs#source=top_international_equities_etfs%3Aexpanded%3Anavbar_left)\n  - [Top Sector Equity ETFs](https:\/\/seekingalpha.com\/screeners\/etfs\/922b7973d5-Top-Sector-Equity-ETFs#source=top_sector_equity_etfs%3Aexpanded%3Anavbar_left)\n  - [Top U.S. Equity ETFs](https:\/\/seekingalpha.com\/screeners\/etfs\/922b797268-Top-U-S--Equity-ETFs#source=top_us_equity_etfs%3Aexpanded%3Anavbar_left)\n  - [Most Shorted ETFs](https:\/\/seekingalpha.com\/screeners\/etfs\/9ecdd541a8-Most-Shorted-ETFs#source=most_shorted_etfs%3Aexpanded%3Anavbar_left)\n- [Comparisons](https:\/\/seekingalpha.com\/comparison#source=comparisons%3Aexpanded%3Anavbar_left)\n  \n  ## Comparisons\n  - [AI Stocks](https:\/\/seekingalpha.com\/comparison\/91b2fbba4e-Artificial-Intelligence-%28AI%29-Stocks#source=ai_stocks%3Aexpanded%3Anavbar_left)\n  - [5G Stocks](https:\/\/seekingalpha.com\/comparison\/91b2fdf02e-5G-Stocks#source=5g_stocks%3Aexpanded%3Anavbar_left)\n  - [Aerospace & Defense Stocks](https:\/\/seekingalpha.com\/comparison\/91b2fbba40-Aerospace-%26-Defense-Stocks#source=aerospace_defense_stocks%3Aexpanded%3Anavbar_left)\n  - [Dividend Stocks](https:\/\/seekingalpha.com\/comparison\/91b2fbb823-Dividend-Stocks#source=dividend_stocks%3Aexpanded%3Anavbar_left)\n  - [Value Stocks](https:\/\/seekingalpha.com\/comparison\/91b2fbb9fe-Value-Stocks#source=value_stocks%3Aexpanded%3Anavbar_left)\n  - [Blue Chip Stocks](https:\/\/seekingalpha.com\/comparison\/91b2fbbb60-Blue-Chip-Stocks#source=blue_chip_stocks%3Aexpanded%3Anavbar_left)\n  - [FAANG Stocks](https:\/\/seekingalpha.com\/comparison\/9e-FAANG-Stocks#source=faang_stocks%3Aexpanded%3Anavbar_left)\n  - [Gold ETFs](https:\/\/seekingalpha.com\/comparison\/9679-Gold-ETFs#source=gold-etfs%3Aexpanded%3Anavbar_left)\n  - [Cash Equivalents](https:\/\/seekingalpha.com\/comparison\/95bd-Cash-Equivalents#source=cash_equivalents%3Aexpanded%3Anavbar_left)\n  - [Big Bank Stocks](https:\/\/seekingalpha.com\/comparison\/9678-Big-Bank-Stocks#source=big_bank_stocks%3Aexpanded%3Anavbar_left)\n  - [Big Pharma Stocks](https:\/\/seekingalpha.com\/comparison\/967b-Big-Pharma-Stocks#source=big_pharma_stocks%3Aexpanded%3Anavbar_left)\n  - [Retail Stocks](https:\/\/seekingalpha.com\/comparison\/967a-Retail-Stocks#source=retail_stocks%3Aexpanded%3Anavbar_left)\n\n## Subscriptions\n- [Alpha Picks](https:\/\/subscriptions.seekingalpha.com\/lp_alpha-picks_sub\/#source=alpha-picks%3Aexpanded%3Anavbar_left)\n- [Premium & Pro](https:\/\/seekingalpha.com\/subscriptions#source=premium-pro%3Aexpanded%3Anavbar_left)\n- [Group Subscriptions](https:\/\/subscriptions.seekingalpha.com\/group_subscriptions#source=group-subscriptions%3Aexpanded%3Anavbar_left)\n\nSearch field\n\nEntering text into the input field will update the search result below\n\nEntering text into the input field will update the search result below\n\nCreate free account\n\n[Search for Symbols, analysts, keywords](https:\/\/seekingalpha.com\/basic-search \"Search\")\n\nLog in\n\n1. [Home](https:\/\/seekingalpha.com\/#source=first_level_url%3Aarticle%7Ccontent_type%3Aall%7Csection%3Apage_breadcrumbs)\n2. [Stock Ideas](https:\/\/seekingalpha.com\/stock-ideas#source=first_level_url%3Aarticle%7Ccontent_type%3Aall%7Csection%3Apage_breadcrumbs)\n3. [Long Ideas](https:\/\/seekingalpha.com\/stock-ideas\/long-ideas#source=first_level_url%3Aarticle%7Ccontent_type%3Aall%7Csection%3Apage_breadcrumbs)\n4. [Industrial](https:\/\/seekingalpha.com\/stock-ideas\/industrial-goods#source=first_level_url%3Aarticle%7Ccontent_type%3Aall%7Csection%3Apage_breadcrumbs)\n\n- [Singapore](https:\/\/seekingalpha.com\/market-outlook\/global-investing\/analysis\/singapore#source=section%3Amain_content%7Csection_asset%3Athemes%7Cbutton%3Asingapore%7Cfirst_level_url%3Aarticle)\n# Grab: Southeast Asia's SuperApp Destined For Growth\nJul 30, 2025, 1:09 AM ET[Grab Holdings Limited (GRAB) Stock](https:\/\/seekingalpha.com\/symbol\/GRAB#source=section%3Amain_content%7Csection_asset%3Ameta%7Cfirst_level_url%3Aarticle%7Csymbol%3AGRAB)\n\n![](https:\/\/seekingalpha.com\/images\/users_profile\/061\/375\/197\/big_pic.png?io=w36)\n\n[Jia Ming Eow](https:\/\/seekingalpha.com\/author\/jia-ming-eow#source=url_first_level%3Aarticle%7Csection%3Aauthor_brief%3Ajia-ming-eow%7Csection_asset%3Aauthor_brief%7Cauthor_name)\n\n1\\.93K Followers\n\nFollow\n\n- 5\n  \n  Share\n- Save\n- Play(24min)\n- [Comments (27)](https:\/\/seekingalpha.com\/article\/4805856-grab-seas-superapp-destined-for-growth#scroll_comments)\n\n## Summary\n- Grab is a diversified super-app in Southeast Asia, combining ride-hailing, food delivery, and digital payments, creating a massive growth opportunity.\n- With ~\\$6 billion in cash, a potentially successful M\\&A with GoTo could lead to a larger market share.\n- Grab’s strong brand, market dominance, and lack of major competitors position it as a long-term winner as Southeast Asia’s digital economy grows.\n\n![Chic young Asian man using mobile app device on smartphone to order a taxi pick up service by the urban road in downtown city street. Speedy and trustworthy service. Carsharing and business on the go themes](https:\/\/static.seekingalpha.com\/cdn\/s3\/uploads\/getty_images\/1323994547\/image_1323994547.jpg?io=getty-c-w750)\n\nwhitebalance.oatt\n\nGrab ([GRAB](https:\/\/seekingalpha.com\/symbol\/GRAB#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)) is positioning itself to be the super-app in Southeast Asia (SEA), offering services from ride hailing, food delivery, and digital payments. It combines apps such as Uber, DoorDash, and PayPal, all in one. Their diversified operations and building dominance in SEA create a huge buying opportunity for future potential growth. Grab also has ~\\$6 billion in cash flow, with a market cap of ~\\$22 billion, trading around 27% of cash, which stands at \\$1.44 per share. Grab's growth is not slowing down; being positioned in an unsaturated market, as smaller local firms die down, Grab will capture the majority of the market share. Hence, I'm initiating a 'Strong Buy'.\n\n## **Thesis**\nGrab is to many just SEA's Uber ([UBER](https:\/\/seekingalpha.com\/symbol\/UBER#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)), which was also my initial impression, having lived in Malaysia for 14 years. With their diversified operations, Grab is positioning itself in SEA for daily life as everyone is starting to come online. They are positioning themselves with services that are common in Europe and the US, such as ride-hailing, food delivery, financial services, and some e-commerce.\n\nThis means that their growth potential is high, compared to America's or Europe's, whose markets are getting more and more saturated, whereas SEA's digital adoption is just starting. Uber sold their SEA business to Grab back in 2018, as what Grab can do better than Uber is being more localized and being popular in these regions. Their brand visibility and reliability are only ever increasing, as Uber is no longer a competitor but a shareholder of Grab, which to me shows optimism in Grab to execute in SEA. Grab is a long-term play; it is offering services that are widely available in Europe and the US and offering them in SEA with no competitors like Uber interfering. Demand for these services will simply increase as GDP gets larger and as cities get gentrified, and Grab has positioned itself to be a long-term winner with a potential high CAGR.\n\n## **Comparing SEA and Europe**\nAs I mentioned in my thesis, their growth potential is high operating in SEA compared to the Americas or Europe. I'm going to compare a few metrics to explain why SEA is the next big market that Grab will capitalize on.\n\n|   |   |   |   |\n|---|---|---|---|\n|   | SEA | Europe | US |\n| Population | [~700M](https:\/\/www.worldometers.info\/world-population\/south-eastern-asia-population\/#:~:text=Countries%20in%20South-Eastern%20Asia&text=The%20current%20population%20of%20South,the%20latest%20United%20Nations%20data.) | [~744M](https:\/\/www.worldometers.info\/world-population\/europe-population\/) | [~347M](https:\/\/www.worldometers.info\/world-population\/us-population\/) |\n| Forecast 2025 GDP growth | [~4.7%](https:\/\/www.aura.co\/news-and-insights\/southeast-asia-economic-update-1q-2025) | [~1.1%(EU)](https:\/\/economy-finance.ec.europa.eu\/economic-forecast-and-surveys\/economic-forecasts\/spring-2025-economic-forecast-moderate-growth-amid-global-economic-uncertainty_en) | [~1.4%](https:\/\/www.deloitte.com\/us\/en\/insights\/topics\/economy\/us-economic-forecast\/united-states-outlook-analysis.html) |\n| Median Age | [30\\.9](https:\/\/www.worldometers.info\/world-population\/south-eastern-asia-population\/#:~:text=Countries%20in%20South-Eastern%20Asia&text=The%20population%20density%20in%20South,miles%29.&text=The%20median%20age%20in%20South-Eastern%20Asia%20is%2030.9%20years.) | [44\\.7(EU)](https:\/\/ec.europa.eu\/eurostat\/web\/interactive-publications\/demography-2025#:~:text=Median%20age%20of%20the%20population%20in%20the%20EU%3A%2044.7%20years) | [~38.5](https:\/\/www.worldometers.info\/world-population\/us-population\/#:~:text=The%20median%20age%20in%20the%20United%20States%20is%2038.5%20years.) |\n| Smartphone penetration | [~80%](https:\/\/www.researchgate.net\/figure\/Mobile-phone-penetration-rate-in-Southeast-Asia-from-2010-to-2025-Rysunek-3-Wskaznik_fig1_382211243) | [89%](https:\/\/www.gsma.com\/solutions-and-impact\/connectivity-for-good\/mobile-economy\/europe\/) | [~91%](https:\/\/www.pewresearch.org\/internet\/fact-sheet\/mobile\/#:~:text=The%20vast%20majority%20of%20Americans,smartphone%20ownership%20conducted%20in%202011.) |\n| Bank account ownership | [\\>70%](https:\/\/www.temasek.com.sg\/content\/dam\/temasek-corporate\/news-and-views\/resources\/reports\/future-of-southeast-asia-digital-financial-services.pdf) | [~96%](https:\/\/www.wsbi-esbg.org\/number-of-unbanked-adult-eu-citizens-more-than-halved-in-the-last-four-years\/) | [~96%](https:\/\/fdic.gov\/news\/press-releases\/2024\/fdic-survey-finds-96-percent-us-households-were-banked-2023) |\n| Digital wallet usage | [~83%](https:\/\/www.visa.com.vn\/content\/dam\/VCOM\/regional\/ap\/singapore\/global-elements\/documents\/visa-cpa-2023-report-ipvmc-final.pdf) | [\\<20% (Germany and UK)](https:\/\/uk.finance.yahoo.com\/news\/europe-digital-payments-report-2025-080200837.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAMbcOuNPb_XDxrdvSY9rRcDlpnwIYyYj58vkRxXrtzBn1IOzDvme0UKVaHeME3q9c6hvhEvqt0S-sfaVRHUQauv5k0Ho8-EAK9esYQIyrcHQOoiBueQsVz3QpwMsQVfxHCjPnEQMvTZ3jT15VeZooRNeXvF4w0rDD0xXVzU_2HDK) | [~70%](https:\/\/www.pymnts.com\/mobile-wallets\/2025\/us-in-store-mobile-wallet-use-sees-4-3percent-increase-since-2022\/#:~:text=70%25%20share%20of%20consumers%20in,their%20last%20in-store%20transaction.) |\n\nClick to enlarge\n\nSEA is growing at a faster pace than Europe and the US, as the economies in SEA are only getting larger. Despite only being 11 countries, their population is only ~44 million less than Europe and is approximately double that of the US. This means their addressable market is only increasing, which is evident in their user growth (explained in the next segment). A higher GDP growth suggests that prices in both Europe and SEA on a constant currency are getting more similar (prices of Grab\/Uber will be similar from point A to B in both locations), as Grab's revenue will increase simply from a growing PPP and income in SEA. Ride-hailing services may also be a luxury to individuals who rely on public transport, as a higher GDP and income will lead to a higher demand for Grab.\n\n[![ubers usage by age](https:\/\/static.seekingalpha.com\/uploads\/2025\/7\/21\/61375197-17531235749100158_origin.png?io=w640)](https:\/\/static.seekingalpha.com\/uploads\/2025\/7\/21\/61375197-17531235749100158_origin.png)\n\nUber Estimate Age Demographics (DemandSage)\n\nThrough surveys, this is the estimated [age group demand split](https:\/\/www.demandsage.com\/uber-statistics\/) for Uber. It shows that younger generations have used Uber's ride-hailing services more than older generations. With a significantly lower median age in SEA, I believe that this can be reflected in Grab's demand as well, as Grab stands to gain a larger consumer base than the US and Europe since the median age is lower. There remains substantial room for growth, especially for their financial segments, as smartphone penetration in SEA continues to rise. Increased access to mobile devices is expected to drive further demand for their digital services, such as ride-hailing and digital payments. These statistics also show that the market is more saturated in Europe and the US, as Uber is already well known alongside many competitors, whereas Grab doesn't have to compete with Uber or fear it even enters the market (sold SEA business to Grab in 2018).\n\nA lower bank account ownership and high digital wallet usage are also good metrics. This strays away from using traditional banking or any credit or debit card, but QR-scanned payments. These are popular in SEA countries like Malaysia, using Touch n GO. This is evident with [79% mobile wallet payment](https:\/\/fintechnews.sg\/102286\/mobilepayments\/e-wallet-southeast-asia\/) usage in SEA. With a lower banking population, using these super-apps is easy for consumers, as simply scanning a QR code and paying through a smartphone may be smoother than carrying a card. Though cards are still the preferred method of paying, high digital adoption leads to more loan and payment growth potential. This differs from major cities like London, where paying with cards is the most widely used option, rather than scanning a QR code at a roadside store. Digital wallet has a wide presence in SEA through these QR code payments, which GrabPay can capitalize on. (Apple Pay counts as a digital wallet payment but is a card payment. SEA countries like Malaysia's digital wallet refer to scanning a QR code and paying through the third-party app.)\n\n## **Grab's ride-hailing segment**\nGrab can dominate the SEA region, as Uber left the region due to Grab being able to offer services that are appropriate for each local region. For example, in Indonesia, their [total motorcycles are up to 112M](https:\/\/worldpopulationreview.com\/country-rankings\/motorcycles-by-country), compared to 8.6M in the US, as Southeast Asia countries also top most of the chart. Certain figures also show that th[e 2-wheeler is significantly preferred over the 4-wheeler.](https:\/\/vietnamnet.vn\/en\/vietnam-leads-in-motorbike-usage-amongst-southeast-asian-countries-2297156.html#:~:text=Indonesia%20has%20a%20motor%20vehicle,many%20difficulties%20in%20the%20region.) Grab's offering motor ride-hailing services is just 1 example of how Uber's glocalization didn't work as it couldn't get up to standard and adapt to SEA's lifestyle, which Grab can.\n\nUber couldn't reflect each country's cultural values, as their glocalization failed. They had cash to invest and burn but couldn't figure out how to retain users.\n\n[![profit.\/loss in q1 2025](https:\/\/static.seekingalpha.com\/uploads\/2025\/7\/21\/61375197-17531546937160456_origin.png?io=w640)](https:\/\/static.seekingalpha.com\/uploads\/2025\/7\/21\/61375197-17531546937160456_origin.png)\n\nProfit\/Loss in Q1 2025 (Grab's Investor Relations)\n\nThis is seen as Grab continues to burn cash and only recently turned a profit in Q1 2025 earnings. In Malaysia 2021, Grab had [94% market share](https:\/\/cfdyhvvf.manus.space\/) whilst 32 other registered e-hailing apps (yes, 32 apps) had the other 6%. Grab's market share is now over [95% for ride hailing and 50% for food delivery](https:\/\/bytebridge.medium.com\/comprehensive-report-on-grab-holdings-daa9e7d3918f), still maintaining its dominant position. All these other apps have 1 similarity and 1 difference to Grab; all firms can match local cultures, but the other firms do not have the same amount of cash as Grab to burn. Both factors (culture and cash flow) are important is because Uber had cash to burn but couldn't appeal to local cultures.\n\nFrom this view, it may be seen as hard for Grab to actually retain its customers, because competition can easily come in and compete with Grab. However, I would disagree. These small firms, as margins shrink and user base retention falls, will exit the market due to profitability issues, or simply be limited to their small market share. This is seen in 2024 as [Gojek exited Vietnam](https:\/\/en.vcci.com.vn\/ride-hailers-race-for-market-share-after-gojek%E2%80%99s-exit) due to struggling to achieve profitability despite '*aggressive efforts, including promotions and localization strategies*'. In the long term, I feel, these smaller firms will simply die out, and the challenge that Grab has is to maintain and increase retention for its existing user base.\n\nMore examples to back up this claim with Uber leaving SEA and Gojek leaving Vietnam are also [Gojek leaving Thailand (did losses in 2019 and 2020)](https:\/\/www.thejakartapost.com\/paper\/2021\/07\/07\/gojek-exits-thai-market-sells-business-to-airasia.html?u) and [Foodpanda leaving Thailand.](https:\/\/www.dbs.com.sg\/treasures\/aics\/templatedata\/article\/recentdevelopment\/data\/en\/DBSV\/052025\/GRAB_US_05022025.xml) Smaller firms like Maxim also face regulatory issues, [told to cease operations](https:\/\/www.malaymail.com\/news\/malaysia\/2025\/05\/09\/loke-russian-e-hailing-apps-indrive-maxim-ordered-to-cease-operations-over-permit-insurance-violations\/176192) but are now able to [operate under probation](https:\/\/www.freemalaysiatoday.com\/category\/nation\/2025\/07\/23\/e-hailing-firms-maxim-indrive-granted-3-month-probation). These businesses face the risk of not even being able to operate at all, which doesn't show the stability like Grab. Most e-hailing apps are simply not as widely available as Grab, as Grab still maintains its market share and has more users and drivers.\n\nThe idea for these smaller firms is simply to have small and limited operations for specific areas and be profitable for these small firms, or attempt to expand nationwide and not be profitable (examples above with Foodpanda and Gojek). Grab has maintained its market share in ride-hailing, as mentioned above, from 2021 to 2024. It is unlikely their user base will get affected, as Grab runs the majority of the ride-hailing operations in SEA, as Grab's position remains dominant.\n\n## **Grab's users**\n[![change in platform transacting users](https:\/\/static.seekingalpha.com\/uploads\/2025\/7\/21\/61375197-17531561791450627_origin.png?io=w640)](https:\/\/static.seekingalpha.com\/uploads\/2025\/7\/21\/61375197-17531561791450627_origin.png)\n\nGrab's Platform Transacting Users (Grab's Investor Relations)\n\nGrab's user growth shows that their promotions and burning cash to retain their user base have been successful. This is a huge green flag for Grab trying to build a super-app, as they try to integrate into people's everyday lives, especially for a firm operating in business-to-consumer (B2C). I believe that higher smartphone penetration, more exposure to the digital world, and people needing services such as mobility and deliveries, all lead to a higher user base. With so much B2C choice in SEA and Grab being able to maintain growth, while turning a profit in Q1, this means that this growth is just starting. 119 million of a 700 million population is also only 17% penetration on a yearly metric, and only ~6.4% on a monthly metric. This shows that Grab has so much more room to grow, as the integration of technology similar to Europe and the US through technology transfer is just starting, as smartphone penetration and bank account ownership are all still lower than in Europe and the US (table above).\n\nFor the next few quarters, key metrics such as maintaining users as well as its profit margin are things to look out for, as the adoption of Grab services is trending upwards. Since in a B2C model consumers can just swap to a different service, it is essential for user growth to trend upwards and Grab maintain their dominant position.\n\n## **Grab's financial services segment**\nGrab offers services such as GrabPay, lending, digital banking (GXS Bank) and insurance. Grab has guided for this segment to [break even by 2026](https:\/\/investors.grab.com\/news-and-events\/news-details\/2022\/Grab-targets-Group-Adjusted-EBITDA-breakeven-by-H2-2024-as-it-accelerates-path-to-profitability\/default.aspx), as this is currently trading at a negative adjusted EBITDA. In [Q4 2024 earnings](https:\/\/seekingalpha.com\/article\/4770981-grab-holdings-limited-grab-q4-2024-earnings-call-transcript#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link), it was noted that '*90% of the GXS Bank customers in Malaysia came from Grab and the acquisition cost is minimal. The speed at which we've been able to gather deposits and open new accounts we're now up to 4 million new accounts*'.\n\nThis shows that this has huge potential for further growth. Users familiar with Grab mobility or delivery services might try Grab's financial services first if they don't have a bank account, as the reliable app is already at the front of their minds. With their proven consistent user growth in mobility and delivery, this can translate to their financial services user growth. When adjusted EBITDA is no longer negative, it could be a high-growth high-margin business.\n\n[![chagne in fianncial services and loan portoflio yoy](https:\/\/static.seekingalpha.com\/uploads\/2025\/7\/22\/61375197-17532014003555744_origin.png?io=w640)](https:\/\/static.seekingalpha.com\/uploads\/2025\/7\/22\/61375197-17532014003555744_origin.png)\n\nFinancial Services Revenue and Adjusted EBITDA Change YoY (Grab's Investor Relations)\n\nIn Q1 2025, revenue grew by 36%, with the loan portfolio growing by 56%, all impressive numbers. It is now all about execution, as seen in their adjusted EBITDA%, which has also been falling.\n\n[![2025 guidance](https:\/\/static.seekingalpha.com\/uploads\/2025\/7\/22\/61375197-17532015121522925_origin.png?io=w640)](https:\/\/static.seekingalpha.com\/uploads\/2025\/7\/22\/61375197-17532015121522925_origin.png)\n\n2025 Guidance (Grab's Investor Relations)\n\nIf next quarter's results beat estimates and align with the updated guidance shown in Q1 of a 47%-53% YoY increase in Group Adjusted EBITDA, Grab should look to comfortably achieve its goal of positive adjusted EBITDA by 2026. A thing to note for future earnings is user growth as well, as user growth needs to continue for the financial segment to grow (using mobility\/delivery services leads to trying financial services as well). More users also create a larger network effect, as when more people start using GrabPay to transfer money like PayPal, it will attract more users to Grab.\n\nJust to keep in mind, the long-term potential and penetration are massive, as GDP per capita rises fast and bank usage is low. In China, Alipay is a huge success, and Grab is sort of trying to replicate paying through GrabPay. SEA is an emerging market where demand will only increase for fintech and ride-hailing services as the cities get more and more advanced, as the potential addressable market is hundreds of millions of users that still have no exposure to Grab fintech products.\n\n## **Grab and Uber**\nCompetition might be high as local businesses adapt to food delivery and such services, but Grab still has the majority market share in SEA. A risk in these scenarios is that the huge US firms to expand into SEA and dominate the market, as Uber has in this scenario. However, Uber has worked with Grab since 2018, so there should be no fear that a huge firm will come in and compete with Grab, as Uber owns [~14% of Grab.](https:\/\/sg.finance.yahoo.com\/news\/brief-uber-technologies-reports-14-204114191.html) Another positive is that Dara Khosrowshahi, Uber's CEO, is on the [board of directors for Grab,](https:\/\/investors.grab.com\/corporate-governance\/board-of-directors\/) as Grab is able to have direct help and navigation with Uber's success in the ride-hailing industry. There is still a chance that an established firm might enter the SEA market, but with Uber's failed attempt, there will be huge doubts for any new entrant. With no real competitors in the market for most of SEA, Grab's market share is highly unlikely to be negatively affected in the long term, especially for ride-hailing, maintaining its dominance.\n\n## **Grab acquiring GoTo implications**\nGoTo (or Gojek) is Grab's competitor when it comes to food delivery services, as mentioned above, Grab has ~50%, while GoTo held ~10.5% back in 2023. Grab has been in talks with GoTo to acquire their operations [since 2021](https:\/\/en.wikipedia.org\/wiki\/Gojek), as investors speculate that the acquisition will happen because of Grab's large free cash flow. Sources say that Grab and GoTo have been in [advanced talks](https:\/\/www.reuters.com\/markets\/deals\/grab-goto-advanced-merger-talks-sources-say-2025-02-04\/) in Feb this year, also [eyeing up a loan](https:\/\/www.reuters.com\/markets\/deals\/grab-seeks-2-billion-loan-possible-goto-takeover-bloomberg-news-reports-2025-03-26\/) back in March. Grab's cash has to go somewhere, and GoTo is one of the top choices to potentially monopolize the ride-hailing and delivery industries in SEA, as their market share in Indonesia could be [as high as over 90%](https:\/\/www.reuters.com\/sustainability\/boards-policy-regulation\/grab-goto-merger-talks-face-indonesian-regulatory-hurdles-sources-say-2025-06-19\/).\n\nThe main component Grab is targeting is GoTo's Indonesia operations, as Grab holds [~70% of ride-hailing market share](https:\/\/miracuves.com\/battle-of-the-super-apps-gojek-vs-grab\/) in SEA, while GoTo holds ~60% in Indonesia and a '*significant portion of food delivery through GoFood.'* Indonesia being the largest GDP in all of SEA means that Grab is facing competition in the largest addressable market in SEA. If Grab does acquire GoTo, their dominance in SEA will get larger. GoTo has already exited multiple SEA markets (mentioned above), and the only market Grab has to compete with GoTo is Indonesia (GoTo has a dominant position over Grab). This will heavily benefit Grab if the deal executes, as in the long term, Grab would only compete with smaller local firms as Grab will maintain its user base and continue to capture the majority of the market share (referring back to the argument that Grab has cash to burn and others don't, so Grab can retain more potential customers if GoTo is no longer competition). I would like to see Grab acquire GoTo as soon as possible, as Grab will heavily benefit from this deal in the long term.\n\n## **Risks**\nGrab did not repurchase any shares in Q1 and issued a [\\$1.25B convertible senior note](https:\/\/seekingalpha.com\/news\/4456675-grab-holdings-files-to-sell-125b-convertible-senior-notes-due-2030#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) upped to \\$1.5B, to raise cash shows that Grab is planning something big in my view, such as acquiring GoTo (Gojek), a major player in Indonesia. Mentioned previously of poor margins and high competition, [GoTo has been down 85% all time](https:\/\/www.tradingview.com\/symbols\/IDX-GOTO\/?timeframe=ALL). I believe Grab, in the long term, will benefit from this acquisition if it happens, but execution risk still exists when such a deal\/acquisition takes place if it does.\n\nThey are raising more cash, which could suggest that Grab could overpay for GoTo, despite their market cap near its bottom. However, if Grab executes this at a good price and does not overpay, Grab's investor confidence will increase significantly. Grab and GoTo also have [regulatory pressure](https:\/\/eastasiaforum.org\/2025\/07\/03\/grabs-acquisition-of-goto-is-a-big-test-for-indonesias-competition-regulators\/#:~:text=In%20Brief,consumers%2C%20innovation%20and%20small%20businesses), as more time may be needed for Grab to complete the deal, which may decrease investor confidence (I believe investors want GoTo under Grab to increase market dominance). [Grab has also denied reports](https:\/\/www.techinasia.com\/news\/grab-denies-reports-7b-goto-acquisition) of any discussion between the parties, as this may lead to lower long-term optimism if Grab faces competition with Gojek in some SEA countries such as Indonesia.\n\nAnother risk is that SEA doesn't have fully developed public transport yet, which may lower Grab's demand as trains\/trams may be more suitable and cheaper for individuals when they are widely available. Malaysia is the [3rd biggest SEA](https:\/\/www.theglobaleconomy.com\/rankings\/gdp_per_capita_ppp\/South-East-Asia\/) country in terms of GDP per capita, with a capital (Kuala Lumpur) that has a good public transport system. Now focusing on a specific Malaysian state, Penang, is home to high foreign direct investment (FDI) inflows into the state, including US tech firms such as Lam Research ([LRCX](https:\/\/seekingalpha.com\/symbol\/LRCX#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)), Intel ([INTC](https:\/\/seekingalpha.com\/symbol\/INTC#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)), Dell ([DELL](https:\/\/seekingalpha.com\/symbol\/DELL#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)), and many more. Penang has high inflows of FDI as well as being ranked [top 3-5 in terms](https:\/\/en.wikipedia.org\/wiki\/List_of_Malaysian_states_by_GDP) of GDP and GDP per capita among Malaysian states and territories. However, they don't have a developed public transport system. Something to point out on the stats: Kuala Lumpur and Labuan are top 5 but are not Malaysian states. Kuala Lumpur is a territory in Selangor, and Labuan is a territory in Sabah, as Penang ranks high in both metrics in terms of Malaysian states, only really behind Selangor (which has KL capital).\n\nIn Penang, there are 2 sides, one that is with the mainland (island 1) and one that is not, connected by a bridge (island 2). The capital is on island 2 and away from the mainland. Island 2 has no rail systems throughout the whole city, and only recently started construction within island 2 and is [expected to be ready in 2031](https:\/\/www.scoop.my\/news\/264447\/mutiara-lrt-project-kicks-off-as-penangs-six-year-construction-timeline-begins\/). The only existing rail system in Penang is on island 1 in the corner of the state, connecting Penang to the country's capital, Kuala Lumpur. To travel from island 1 to 2, it is only via car (drive yourself or Grab), bus, or ferry. There are also no plans to link one island to the other today via a rail system.\n\nThis is one example, but the idea is that Grab can penetrate these markets because their public transport systems are so underdeveloped. Individuals may be forced to use Grab during certain times, such as when the bus stops running or a location far away from buses. This is a long-term risk, as when public transport systems get more developed for SEA countries and for smaller cities such as Penang, Grab's demand will fall as users have more choices. Being cheaper with minimal changes to users' daily lives, trains may be the first choice for Grab. If Grab sees a noticeable demand decline due to increased public transport availability throughout SEA, it will show that Grab services are no longer needed as the norm for some individuals, but as a luxury.\n\nAnother long-term risk is full self-driving (FSD), as Tesla Robotaxi and Alphabet's Waymo are already launching in the US with hundreds of thousands of paid rides weekly. With a lower cost for FSD, regular hailing service will be obsolete if FSD is at full scale. However, a key thing to note for this risk is location. This is SEA, not Europe or the US. Motorcycles are widespread, and roads could be argued to be more dangerous, being flooded by motorcycles and uneven roads. FSD will need to be fully developed and launched in Europe and the US to even start considering dropping it in SEA due to its different road conditions, as this may be a risk whenever FSD is a norm in society in Western countries. With Uber partnering up with Waymo, Uber's participation in Grab could lead to FSD being brought over to SEA, which will be run on Grab's platform anyway, as Grab is already the dominant player with ties to Uber.\n\n## **Valuation**\n[![Grab's Valuation Metric](https:\/\/static.seekingalpha.com\/uploads\/2025\/7\/22\/61375197-17532022056889076_origin.png?io=w640)](https:\/\/static.seekingalpha.com\/uploads\/2025\/7\/22\/61375197-17532022056889076_origin.png)\n\nGrab's Valuation Metric (Seeking Alpha Valuation Tab)\n\nGrab from a P\/E GAAP basis could seem overvalued, considering Uber, Lyft, and DoorDash trades at forward P\/E of ~32, ~65, and ~112, Grab does look a little bit expensive.\n\nGrab is a long-term play, as the potential customers for SEA is so large, and Grab is just starting. Uber, Lyft ([LYFT](https:\/\/seekingalpha.com\/symbol\/LYFT#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)), and DoorDash ([DASH](https:\/\/seekingalpha.com\/symbol\/DASH#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)) are already established players operating in saturated markets. Grab is also building a 'super-app', combining fintech, ride hailing, and mobility. Their revenue growth for any segment isn't slowing down, and will only get better as exposure gets larger.\n\nGrab also trades with a huge cash flow, more than 30% of their market cap, which, after debt, none of the firms can compare to. With sources estimating that Grab will [trade at a P\/E of 41](https:\/\/finbox.com\/DB:A6I\/explorer\/pe_fwd\/) by the end of 2027, Grab is not that expensive considering that their financial segment is still at a negative adjusted EBITDA. Once this is positive and Grab is able to show it can be positive by 2026 (direction is heading that way), Grab's long-term user\/revenue trajectory as SEA starts adopting digital services could be double or triple.\n\n## **Conclusion**\nGrab is a long-term play, betting on the idea that Grab can execute in SEA as the next super-app despite high local competition that can undercut their prices. Their revenue and adjusted EBITDA are all trending in the right direction, as they continue to dominate the mobility and delivery markets. It is only time before smaller local players can't keep up with Grab, as they are limited to their small market share and lower revenue.\n\nWith their next earnings report in a few weeks, we will have more clarity on Grab's trajectory and whether it is still maintaining its forecast of 2026 positive adjusted EBITDA, which the trend should be perfectly in line with as Q1 showed their stable user growth. Grab is already the dominant player in SEA, will maintain its dominant position as offering products that are not widely common and available in SEA, yet creates high-growth potential for Grab, and it is just starting.\n\nThis article was written by\n\n![](https:\/\/seekingalpha.com\/images\/users_profile\/061\/375\/197\/big_pic.png?io=w36)\n\n[Jia Ming Eow](https:\/\/seekingalpha.com\/author\/jia-ming-eow#source=url_first_level%3Aarticle%7Csection%3Aauthor_root%3Ajia-ming-eow%7Csection_asset%3Aauthor_root%7Cauthor_name)\n\n1\\.93K Followers\n\nFollow\n\nI'm a 20 year old passionate trader managing a 6-figure portfolio trying to and beating the major indexes with my tech-focused\/fintech-focused picks. I am focused mostly on growth stocks, particularly stocks that implement AI into their operations, as well as stocks that have a moat over their sector. My personal strategy revolves around finding stocks with high growth potential and undervalued in the market, creating a portfolio with high growth potential rather than FOMO. My niche is to navigate and identify winners in this AI boom that is being underappreciated, as well as to understand the whole AI ecosystem as the AI boom continues.I started researching and analysing stocks since I was 17, aiming to give users a better insight and my ideas, simply motivated by my passion for the stock market and researching equities. Currently also working as an equity advisor and researcher for a family office with over 9 figures in assets, so catch any of my analysis I write up. Also currently 2nd year in University studying Economics. Feel free to reach out to me on Seeking Alpha or LinkedIn for any enquires\/questions.\n\nShow more\n\nShow more\n\n**Analyst’s Disclosure:** I\/we have a beneficial long position in the shares of GRAB either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.\n\n**Seeking Alpha's Disclosure:** Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.\n\n- Like\n- Share\n- Print\n- [Comments (27)](https:\/\/seekingalpha.com\/article\/4805856-grab-seas-superapp-destined-for-growth#scroll_comments)\n\n### Recommended For You\n![](https:\/\/seekingalpha.com\/images\/users_profile\/062\/493\/212\/big_pic.png?io=w36&t=d9ec773001)\n\n### [Microsoft: The Selloff Looks Better Than The Story](https:\/\/seekingalpha.com\/article\/4889520-microsoft-the-selloff-looks-better-than-the-story#source=section%3Arecommended_for_you%7Csection_asset%3Aintegrated%7Cfirst_level_url%3Aarticle%7Cvariation_group%3Avariation_a%7Cline%3A1)\nQuantryon Capital\n\n![](https:\/\/seekingalpha.com\/images\/users_profile\/053\/884\/093\/big_pic.png?io=w36&t=22c691e95f)\n\n### [Micron: The Memory Bottleneck Is Shifting - And Market Hasn't Caught Up](https:\/\/seekingalpha.com\/article\/4889484-micron-the-memory-bottleneck-is-shifting-and-market-hasnt-caught-up#source=section%3Arecommended_for_you%7Csection_asset%3Aintegrated%7Cfirst_level_url%3Aarticle%7Cvariation_group%3Avariation_a%7Cline%3A2)\nSummit Research\n\n![](https:\/\/seekingalpha.com\/images\/users_profile\/048\/206\/420\/big_pic.png?io=w36&t=358374e03d)\n\n### [Palantir: This Could End Badly](https:\/\/seekingalpha.com\/article\/4889491-palantir-this-could-end-badly#source=section%3Arecommended_for_you%7Csection_asset%3Aintegrated%7Cfirst_level_url%3Aarticle%7Cvariation_group%3Avariation_a%7Cline%3A3)\nBears of Wall Street\n\n![](https:\/\/seekingalpha.com\/images\/users_profile\/016\/009\/792\/big_pic.png?io=w36&t=b042eca515)\n\n### [Intel Foundry Services Is Materializing As The Turnaround Of The Decade](https:\/\/seekingalpha.com\/article\/4889573-intel-foundry-services-is-materializing-as-the-turnaround-of-the-decade#source=section%3Arecommended_for_you%7Csection_asset%3Aintegrated%7Cfirst_level_url%3Aarticle%7Cvariation_group%3Avariation_a%7Cline%3A4)\nMichael Del Monte\n\n![](https:\/\/seekingalpha.com\/images\/users_profile\/058\/583\/751\/big_pic.png?io=w36&t=67a938ba35)\n\n### [Alphabet Stock Defies AI's Gravity](https:\/\/seekingalpha.com\/article\/4889600-alphabet-stock-defies-ai-gravity#source=section%3Arecommended_for_you%7Csection_asset%3Aintegrated%7Cfirst_level_url%3Aarticle%7Cvariation_group%3Avariation_a%7Cline%3A5)\nOliver Rodzianko\n\n![](https:\/\/seekingalpha.com\/images\/users_profile\/047\/644\/028\/big_pic.png?io=w36&t=7804b247ff)\n\n### [Panic In REITs Is Creating Generational Opportunities](https:\/\/seekingalpha.com\/article\/4888768-panic-in-reits-is-creating-generational-opportunities#source=section%3Arecommended_for_you%7Csection_asset%3Aintegrated%7Cfirst_level_url%3Aarticle%7Cvariation_group%3Avariation_a%7Cline%3A6)\nJussi Askola, CFA\n\n![](https:\/\/seekingalpha.com\/images\/users_profile\/060\/524\/232\/big_pic.png?io=w36&t=f87fc67222)\n\n### [This Ceasefire Rally Could Collapse Tomorrow: Here's What I'm Buying Anyway](https:\/\/seekingalpha.com\/article\/4889508-ceasefire-rally-could-collapse-tomorrow-heres-what-im-buying-anyway#source=section%3Arecommended_for_you%7Csection_asset%3Aintegrated%7Cfirst_level_url%3Aarticle%7Cvariation_group%3Avariation_a%7Cline%3A7)\nDeep Value Investing\n\n![](https:\/\/seekingalpha.com\/images\/users_profile\/003\/949\/741\/big_pic.png?io=w36&t=322f5116d5)\n\n### [Nebius: The Constant Gamechanger](https:\/\/seekingalpha.com\/article\/4889580-nebius-the-constant-gamechanger#source=section%3Arecommended_for_you%7Csection_asset%3Aintegrated%7Cfirst_level_url%3Aarticle%7Cvariation_group%3Avariation_a%7Cline%3A8)\nQuad 7 Capital\n\n![](https:\/\/seekingalpha.com\/images\/users_profile\/050\/662\/133\/big_pic.png?io=w36&t=7d5d8de612)\n\n### [CoreWeave: Time To Load Up](https:\/\/seekingalpha.com\/article\/4889603-coreweave-time-to-load-up#source=section%3Arecommended_for_you%7Csection_asset%3Aintegrated%7Cfirst_level_url%3Aarticle%7Cvariation_group%3Avariation_a%7Cline%3A9)\nJames Foord\n\n![](https:\/\/seekingalpha.com\/images\/users_profile\/047\/771\/937\/big_pic.png?io=w36&t=c43bc96cf9)\n\n### [Blue Owl Capital: The Market Thinks Disaster Is Coming, I Think It Is Wrong](https:\/\/seekingalpha.com\/article\/4889619-blue-owl-capital-the-market-thinks-disaster-is-coming-i-think-it-is-wrong#source=section%3Arecommended_for_you%7Csection_asset%3Aintegrated%7Cfirst_level_url%3Aarticle%7Cvariation_group%3Avariation_a%7Cline%3A10)\nSamuel Smith\n\n### Comments (27)\nNewest\n\nIf you type a company or ETF ticker symbol in capital letters we will automatically link to the symbol page. You can remove the link by deleting the \\$ in the comment.\n\nPublish\n\n![](https:\/\/seekingalpha.com\/images\/users_profile\/061\/375\/197\/small_pic.png?t=ae0a20443a)\n\n[Jia Ming Eow](https:\/\/seekingalpha.com\/author\/jia-ming-eow)\n\nArticle UpdateJul 30, 2025, 11:05 AM\n\n[Analyst](https:\/\/about.seekingalpha.com\/become-an-analyst#source=first_level_url%3Anews%7Csection%3Acomments%7Csection_asset%3Abadge%7Cbutton%3AContributor)\n\nPremium\n\n[Comments (173)](https:\/\/seekingalpha.com\/author\/jia-ming-eow)\n\n\\|\n\n\\+ Follow\n\nAppreciate any feedback and a follow if you like to support my work and analysis! Remember to vote right at the end of the article on whether you found the analysis compelling. Thanks\\!\n\nReply\n\nLike\n\n(6)\n\nW\n\n[WC2020](https:\/\/seekingalpha.com\/user\/45189386)\n\nSep 15, 2025, 11:44 AM\n\n[Comments (2)](https:\/\/seekingalpha.com\/user\/45189386)\n\n\\|\n\n\\+ Follow\n\nnicely done\n\nReply\n\nLike\n\n(1)\n\nLiked By Analyst\n\nP\n\n[PatienceDiscipline](https:\/\/seekingalpha.com\/user\/49137940)\n\nAug 05, 2025, 8:41 PM\n\nPremium\n\n[Investing Group](https:\/\/seekingalpha.com\/checkout\/mp_1180#source=first_level_url%3Anews%7Csection%3Acomments%7Csection_asset%3Abadge%7Cbutton%3AInvesting%20Group)\n\n[Comments (1.81K)](https:\/\/seekingalpha.com\/user\/49137940)\n\n\\|\n\n\\+ Follow\n\nSE was a better buy though last year. I feel SE has better immediate prospects. Agree that GRAB's current valuation is a bet on the longer term.\n\nReply\n\nLike\n\n![](https:\/\/seekingalpha.com\/images\/users_profile\/000\/179\/106\/small_pic.png?t=7e68c2d550)\n\n[Sage Capital](https:\/\/seekingalpha.com\/user\/179106)\n\nAug 04, 2025, 4:37 AM\n\nPremium\n\n[Comments (608)](https:\/\/seekingalpha.com\/user\/179106)\n\n\\|\n\n\\+ Follow\n\nGRAB's strong GMV growth should extend into 3Q\/4Q, with EBITDA growing via improving Deliveries margin. Optimization of costs & incentives related to the new initiatives should support margins. GrabMart has been seeing rising traction with growth ahead of Food Deliveries and advertising being a key opportunity to unlock. In Fintech, rising loan penetration with drivers\/merchants, ramp up in BNPL and new products for SMEs launched by Digital Banks are driving growth acceleration.\n\nBottom Line:Stay long with current PT +25%.\n\nReply\n\nLike\n\n![](https:\/\/seekingalpha.com\/images\/users_profile\/028\/795\/505\/small_pic.png?t=a6a38b35ef)\n\n[No Paychecks...Dividends & Interest](https:\/\/seekingalpha.com\/user\/28795505)\n\nJul 31, 2025, 10:16 AM\n\nPremium\n\n[Comments (1.11K)](https:\/\/seekingalpha.com\/user\/28795505)\n\n\\|\n\n\\+ Follow\n\nForgive me....new to GRAB research....why is it down over 4% today? Excellent article\n\nReply\n\nLike\n\n(1)\n\nLiked By Analyst\n\nU\n\n[User 18282742](https:\/\/seekingalpha.com\/user\/18282742)\n\nJul 31, 2025, 10:27 AM\n\nPremium\n\n[Comments (1.96K)](https:\/\/seekingalpha.com\/user\/18282742)\n\n\\|\n\n\\+ Follow\n\n@No Paychecks...Dividends & Interest they reported 2Q last night.\n\nReply\n\nLike\n\n![](https:\/\/seekingalpha.com\/images\/users_profile\/061\/375\/197\/small_pic.png?t=ae0a20443a)\n\n[Jia Ming Eow](https:\/\/seekingalpha.com\/author\/jia-ming-eow)\n\nJul 31, 2025, 11:08 AM\n\n[Analyst](https:\/\/about.seekingalpha.com\/become-an-analyst#source=first_level_url%3Anews%7Csection%3Acomments%7Csection_asset%3Abadge%7Cbutton%3AContributor)\n\nPremium\n\n[Comments (173)](https:\/\/seekingalpha.com\/author\/jia-ming-eow)\n\n\\|\n\n\\+ Follow\n\n@No Paychecks...Dividends & Interest a lot of reasons IMO. The AI growth isn’t slowing down with META and MSFT earnings so markets might just move out of Grab as the returns may be perceived as lower in the short term. A more micro reason could be guidance not raised with their amazing metrics so speculations on a poorer 2H(imo firms raise guidance in q3 as they are more confident at that point, so not raising guidance in q2 isn’t that crazy). Could be overreaction as well, volumes for Grab isn’t that large as liquidity is a lot lower, leading to larger volatility. Another reason could be fcf growth, I flicked through the results yesterday(I’m on holiday rn) and the FCF growth wasn’t that impressive comparing to previous years. Another reason was one of the metrics of growth(forgot which sorry) was lower YoY compared to Q1. Another reason could also be what they are doing with FCF, which was quite a vague answer. I think investors wants GoTo so limited progress on that could also lead to negative sentiment. IMO very good quarter by Grab and overblown, as I’m quite bullish. But my genuine belief is that investors are just allocating capital back to AI as Grab didn’t raise guidance so no idea whats next whereas AI is clearly trending upwards, hence safer bet on AI as the Grab thesis is more long term. Hope this helps\\!\n\nReply\n\nLike\n\n(1)\n\n![](https:\/\/seekingalpha.com\/images\/users_profile\/028\/795\/505\/small_pic.png?t=a6a38b35ef)\n\n[No Paychecks...Dividends & Interest](https:\/\/seekingalpha.com\/user\/28795505)\n\nJul 31, 2025, 1:38 PM\n\nPremium\n\n[Comments (1.11K)](https:\/\/seekingalpha.com\/user\/28795505)\n\n\\|\n\n\\+ Follow\n\n[@Jia Ming Eow](https:\/\/seekingalpha.com\/author\/jia-ming-eow#source=section%3Acomment%7Csection_asset%3Acomment%7Cfirst_level_url%3Aarticle%7Ccontent_id%3A4805856%7Ccomment_id%3A100773331) Thank you so much for the thorough answer....Very much appreciated.....Enjoy you holiday....\n\nReply\n\nLike\n\n(1)\n\nLiked By Analyst\n\nC\n\n[CuPoTKa](https:\/\/seekingalpha.com\/user\/50457651)\n\nJul 31, 2025, 1:24 AM\n\n[Investing Group](https:\/\/seekingalpha.com\/checkout\/mp_1365#source=first_level_url%3Anews%7Csection%3Acomments%7Csection_asset%3Abadge%7Cbutton%3AInvesting%20Group)\n\n[Comments (1.17K)](https:\/\/seekingalpha.com\/user\/50457651)\n\n\\|\n\n\\+ Follow\n\nGrab compared to Uber, Lyft and DoorDash is moving towards the superapp. Superapp for me is the one bridilging between the consumption and the customer finance. Like MELI. In the mobility sector only Grab is doing that.\n\nReply\n\nLike\n\n(1)\n\nLiked By Analyst\n\n![](https:\/\/seekingalpha.com\/images\/users_profile\/061\/375\/197\/small_pic.png?t=ae0a20443a)\n\n[Jia Ming Eow](https:\/\/seekingalpha.com\/author\/jia-ming-eow)\n\nJul 31, 2025, 3:41 AM\n\n[Analyst](https:\/\/about.seekingalpha.com\/become-an-analyst#source=first_level_url%3Anews%7Csection%3Acomments%7Csection_asset%3Abadge%7Cbutton%3AContributor)\n\nPremium\n\n[Comments (173)](https:\/\/seekingalpha.com\/author\/jia-ming-eow)\n\n\\|\n\n\\+ Follow\n\n[@CuPoTKa](https:\/\/seekingalpha.com\/user\/50457651#source=section%3Acomment%7Csection_asset%3Acomment%7Cfirst_level_url%3Aarticle%7Ccontent_id%3A4805856%7Ccomment_id%3A100769028) IMO Uber Lyft and Doordash can’t build a superapp as it will just fail. The fintech neobank and traditional bank competition is so high in the markets they operate in. Grab on the other hand is taking full advantage of underdevelopment of SEA which allows Grab to do it. All about execution with everything trending the right way, as they are ‘destined for growth’. Good luck and thanks\\!\n\nReply\n\nLike\n\n(2)\n\nC\n\n[CuPoTKa](https:\/\/seekingalpha.com\/user\/50457651)\n\nJul 31, 2025, 3:44 AM\n\n[Investing Group](https:\/\/seekingalpha.com\/checkout\/mp_1365#source=first_level_url%3Anews%7Csection%3Acomments%7Csection_asset%3Abadge%7Cbutton%3AInvesting%20Group)\n\n[Comments (1.17K)](https:\/\/seekingalpha.com\/user\/50457651)\n\n\\|\n\n\\+ Follow\n\n[@Jia Ming Eow](https:\/\/seekingalpha.com\/author\/jia-ming-eow#source=section%3Acomment%7Csection_asset%3Acomment%7Cfirst_level_url%3Aarticle%7Ccontent_id%3A4805856%7Ccomment_id%3A100769032) agree\n\nReply\n\nLike\n\n(1)\n\nLiked By Analyst\n\ng\n\n[golfjohh](https:\/\/seekingalpha.com\/user\/23768393)\n\nJul 30, 2025, 11:22 PM\n\nPremium\n\n[Comments (50)](https:\/\/seekingalpha.com\/user\/23768393)\n\n\\|\n\n\\+ Follow\n\nYour Insight into Grab's Business Model in SEA, was well Researched, and Very Informative\\!\n\nSince moving to Thailand 2 years ago, and having visited other SEA Countries, Grab's Presence is Everywhere! I have used Grab's Food and Mobility Services around 50 to 70 times (guestimate) and have Always had a Positive Experience\\!\n\nThanks for the taking the time to share your thoughts\\!\n\nReply\n\nLike\n\n(7)\n\nLiked By Analyst\n\n![](https:\/\/seekingalpha.com\/images\/users_profile\/061\/375\/197\/small_pic.png?t=ae0a20443a)\n\n[Jia Ming Eow](https:\/\/seekingalpha.com\/author\/jia-ming-eow)\n\nJul 31, 2025, 3:36 AM\n\n[Analyst](https:\/\/about.seekingalpha.com\/become-an-analyst#source=first_level_url%3Anews%7Csection%3Acomments%7Csection_asset%3Abadge%7Cbutton%3AContributor)\n\nPremium\n\n[Comments (173)](https:\/\/seekingalpha.com\/author\/jia-ming-eow)\n\n\\|\n\n\\+ Follow\n\n[@golfjohh](https:\/\/seekingalpha.com\/user\/23768393#source=section%3Acomment%7Csection_asset%3Acomment%7Cfirst_level_url%3Aarticle%7Ccontent_id%3A4805856%7Ccomment_id%3A100769022) thanks a lot! They have very strong presence and I have a feeling their brand recognition isn’t that widely known by investors. Anyone whos been in SEA knows how Grab is present everywhere and is clearly building a moat.(my parents still says are we taking grab when we take an Uber in europe, they reside in SEA lol)\n\nReply\n\nLike\n\n(1)\n\nN\n\n[Natturner1966](https:\/\/seekingalpha.com\/user\/53063108)\n\nJul 30, 2025, 8:02 PM\n\nPremium\n\n[Comments (23.38K)](https:\/\/seekingalpha.com\/user\/53063108)\n\n\\|\n\n\\+ Follow\n\nKind of odd that GRAB reported earnings today and nothing from SA.\n\n[finance.yahoo.com\/...](https:\/\/finance.yahoo.com\/news\/grab-holdings-beats-quarterly-revenue-230012060.html \"https:\/\/finance.yahoo.com\/news\/grab-holdings-beats-quarterly-revenue-230012060.html\")\n\n“Grab Holdings beats quarterly revenue estimates“\n\nReuters) -Grab Holdings beat Wall Street expectations for second-quarter revenue on Wednesday, as consumers boosted spending on its ride-hailing and food delivery platform despite global economic uncertainty.\n\nThe Singapore-based company reported revenue of \\$819 million, above analysts' expectations of \\$811.3 million, according to LSEG data\n\nGrab's push to turn its platform into a superapp, integrating ride-hailing, food and grocery delivery, and other digital services, has drawn a growing number of users willing to pay for its subscription plans.\n\nWhile ongoing U.S. trade negotiations have cast a cloud over global economic stability, leading to concerns about tariffs and elevated costs in Southeast Asia, the Singaporean economy has remained resilient. It grew 4.3% in the second quarter, avoiding a technical recession.\n\nGrab posted a profit of \\$20 million for the quarter, compared with a \\$68 million loss in the same period a year earlier.\n\nReply\n\nLike\n\n(7)\n\nLiked By Analyst\n\n![](https:\/\/seekingalpha.com\/images\/users_profile\/061\/375\/197\/small_pic.png?t=ae0a20443a)\n\n[Jia Ming Eow](https:\/\/seekingalpha.com\/author\/jia-ming-eow)\n\nJul 30, 2025, 8:28 PM\n\n[Analyst](https:\/\/about.seekingalpha.com\/become-an-analyst#source=first_level_url%3Anews%7Csection%3Acomments%7Csection_asset%3Abadge%7Cbutton%3AContributor)\n\nPremium\n\n[Comments (173)](https:\/\/seekingalpha.com\/author\/jia-ming-eow)\n\n\\|\n\n\\+ Follow\n\n[@Natturner1966](https:\/\/seekingalpha.com\/user\/53063108#source=section%3Acomment%7Csection_asset%3Acomment%7Cfirst_level_url%3Aarticle%7Ccontent_id%3A4805856%7Ccomment_id%3A100767710) Most news websites have the results out such as tradingview, which makes me think that SA hasn't seen it because the earnings are at an odd time compared to US stocks in general. The press release has nearly been out for 1H30M and earnings call is ongoing right now. This quarter has maintained my bullish stance on Grab though, with most metrics trending up. No idea how market will see it though so next opening will be interesting\\!\n\nReply\n\nLike\n\n(3)\n\nN\n\n[Natturner1966](https:\/\/seekingalpha.com\/user\/53063108)\n\nJul 30, 2025, 8:33 PM\n\nPremium\n\n[Comments (23.38K)](https:\/\/seekingalpha.com\/user\/53063108)\n\n\\|\n\n\\+ Follow\n\n[@Jia Ming Eow](https:\/\/seekingalpha.com\/author\/jia-ming-eow#source=section%3Acomment%7Csection_asset%3Acomment%7Cfirst_level_url%3Aarticle%7Ccontent_id%3A4805856%7Ccomment_id%3A100767728)   \nYes. I was quite pleased with the results. I listened to a bit of the call. I came away enthusiastic about their future.\n\nReply\n\nLike\n\n(3)\n\nLiked By Analyst\n\n![](https:\/\/seekingalpha.com\/images\/users_profile\/000\/765\/344\/small_pic.png?t=5d07726126)\n\n[Who Dat?](https:\/\/seekingalpha.com\/user\/765344)\n\nJul 30, 2025, 3:01 PM\n\nPremium\n\n[Investing Group](https:\/\/seekingalpha.com\/checkout\/mp_1087#source=first_level_url%3Anews%7Csection%3Acomments%7Csection_asset%3Abadge%7Cbutton%3AInvesting%20Group)\n\n[Comments (17.33K)](https:\/\/seekingalpha.com\/user\/765344)\n\n\\|\n\n\\+ Follow\n\nHaving visited multiple Asian countries this past Dec, it opened my eyes how wildly popular Grab is.\n\nI’ve been long ever since I came back to the states.\n\nReply\n\nLike\n\n(4)\n\nLiked By Analyst\n\n![](https:\/\/seekingalpha.com\/images\/users_profile\/061\/375\/197\/small_pic.png?t=ae0a20443a)\n\n[Jia Ming Eow](https:\/\/seekingalpha.com\/author\/jia-ming-eow)\n\nJul 30, 2025, 8:24 PM\n\n[Analyst](https:\/\/about.seekingalpha.com\/become-an-analyst#source=first_level_url%3Anews%7Csection%3Acomments%7Csection_asset%3Abadge%7Cbutton%3AContributor)\n\nPremium\n\n[Comments (173)](https:\/\/seekingalpha.com\/author\/jia-ming-eow)\n\n\\|\n\n\\+ Follow\n\n[@Who Dat?](https:\/\/seekingalpha.com\/user\/765344#source=section%3Acomment%7Csection_asset%3Acomment%7Cfirst_level_url%3Aarticle%7Ccontent_id%3A4805856%7Ccomment_id%3A100767691) Missing the retail hype that many other stocks are experiencing rn imo. Once institutional and retail money start flowing in and momentum builds I believe Grab can run so much higher. Think awareness of Grab is just low, but anyone who has used Grab's services definitely knows how popular it is, hence many are convicted in the bullish thesis.\n\nReply\n\nLike\n\n![](https:\/\/seekingalpha.com\/images\/users_profile\/016\/436\/262\/small_pic.png?t=805d6d6742)\n\n[laruetou](https:\/\/seekingalpha.com\/user\/16436262)\n\nSep 12, 2025, 1:09 AM\n\n[Investing Group](https:\/\/seekingalpha.com\/checkout\/mp_1076#source=first_level_url%3Anews%7Csection%3Acomments%7Csection_asset%3Abadge%7Cbutton%3AInvesting%20Group)\n\n[Comments (89)](https:\/\/seekingalpha.com\/user\/16436262)\n\n\\|\n\n\\+ Follow\n\n[@Who Dat?](https:\/\/seekingalpha.com\/user\/765344#source=section%3Acomment%7Csection_asset%3Acomment%7Cfirst_level_url%3Aarticle%7Ccontent_id%3A4805856%7Ccomment_id%3A101071981) Who dat say \"who dat?\" when I say \"who dat?\"\n\nReply\n\nLike\n\nE\n\n[EatMyShortzSqueeze](https:\/\/seekingalpha.com\/user\/57544130)\n\nJul 30, 2025, 11:32 AM\n\nPremium\n\n[Comments (18)](https:\/\/seekingalpha.com\/user\/57544130)\n\n\\|\n\n\\+ Follow\n\nGreat article. \\$7 is an easy hurdle for Grab.\n\nReply\n\nLike\n\n(3)\n\nLiked By Analyst\n\nB\n\n[Brett Michael Michaels](https:\/\/seekingalpha.com\/user\/59994107)\n\nJul 30, 2025, 10:27 AM\n\nPremium\n\n[Comments (297)](https:\/\/seekingalpha.com\/user\/59994107)\n\n\\|\n\n\\+ Follow\n\nExcellent article! I began a position in GRAB late last year. I've been hesitant to add much for the same reasons UBER dipped out of SEA -- I just don't know the market well. I've also heard governments in the region aren't huge fans of these types of companies, so I fear a regulatory smack down or profit grab. On the other hand, I really like the business model of GRAB and the direction they are heading.\n\nReply\n\nLike\n\n(1)\n\nLiked By Analyst\n\n![](https:\/\/seekingalpha.com\/images\/users_profile\/061\/375\/197\/small_pic.png?t=ae0a20443a)\n\n[Jia Ming Eow](https:\/\/seekingalpha.com\/author\/jia-ming-eow)\n\nJul 30, 2025, 11:14 AM\n\n[Analyst](https:\/\/about.seekingalpha.com\/become-an-analyst#source=first_level_url%3Anews%7Csection%3Acomments%7Csection_asset%3Abadge%7Cbutton%3AContributor)\n\nPremium\n\n[Comments (173)](https:\/\/seekingalpha.com\/author\/jia-ming-eow)\n\n\\|\n\n\\+ Follow\n\n[@Brett Michael Michaels](https:\/\/seekingalpha.com\/user\/59994107#source=section%3Acomment%7Csection_asset%3Acomment%7Cfirst_level_url%3Aarticle%7Ccontent_id%3A4805856%7Ccomment_id%3A100762824) Thanks! Regulatory is a big risk for Grab in the long term, but the potential growth and % high cash is too attractive to pass on IMO\n\nReply\n\nLike\n\n(1)\n\n![](https:\/\/seekingalpha.com\/images\/users_profile\/000\/765\/344\/small_pic.png?t=5d07726126)\n\n[Who Dat?](https:\/\/seekingalpha.com\/user\/765344)\n\nJul 30, 2025, 3:02 PM\n\nPremium\n\n[Investing Group](https:\/\/seekingalpha.com\/checkout\/mp_1087#source=first_level_url%3Anews%7Csection%3Acomments%7Csection_asset%3Abadge%7Cbutton%3AInvesting%20Group)\n\n[Comments (17.33K)](https:\/\/seekingalpha.com\/user\/765344)\n\n\\|\n\n\\+ Follow\n\n[@Brett Michael Michaels](https:\/\/seekingalpha.com\/user\/59994107#source=section%3Acomment%7Csection_asset%3Acomment%7Cfirst_level_url%3Aarticle%7Ccontent_id%3A4805856%7Ccomment_id%3A100764918)   \nOne of my neighbors, who is a teacher, recently asked me about investing. I don’t usually give stock advise but since she asked, I told her to buy GRAB as much as she can in her son’s 529College fund. It was the only stock I could think of that is “affordable” for a teacher to buy in large qty.\n\nI also came close to telling her to buy FUBO but that would be too speculative\n\nReply\n\nLike\n\nz\n\n[zilant](https:\/\/seekingalpha.com\/user\/62822026)\n\nJul 30, 2025, 5:35 AM\n\n[Comments (1)](https:\/\/seekingalpha.com\/user\/62822026)\n\n\\|\n\n\\+ Follow\n\nNice analysis! I’ve been loading up on Grab since April. Really excited for the Q2 earnings call, which is just about a day away.\n\nReply\n\nLike\n\n(5)\n\nLiked By Analyst\n\n![](https:\/\/seekingalpha.com\/images\/users_profile\/061\/375\/197\/small_pic.png?t=ae0a20443a)\n\n[Jia Ming Eow](https:\/\/seekingalpha.com\/author\/jia-ming-eow)\n\nJul 30, 2025, 11:12 AM\n\n[Analyst](https:\/\/about.seekingalpha.com\/become-an-analyst#source=first_level_url%3Anews%7Csection%3Acomments%7Csection_asset%3Abadge%7Cbutton%3AContributor)\n\nPremium\n\n[Comments (173)](https:\/\/seekingalpha.com\/author\/jia-ming-eow)\n\n\\|\n\n\\+ Follow\n\n[@zilant](https:\/\/seekingalpha.com\/user\/62822026#source=section%3Acomment%7Csection_asset%3Acomment%7Cfirst_level_url%3Aarticle%7Ccontent_id%3A4805856%7Ccomment_id%3A100762810) thanks! loaded up as well going into this earnings, 9h from now, hopefully bullish news\\!\n\nReply\n\nLike\n\n(1)\n\n![](https:\/\/seekingalpha.com\/images\/users_profile\/049\/079\/457\/small_pic.png?t=2a8517deee)\n\n[Manfred M.](https:\/\/seekingalpha.com\/user\/49079457)\n\nJul 30, 2025, 2:26 AM\n\n[Comments (301)](https:\/\/seekingalpha.com\/user\/49079457)\n\n\\|\n\n\\+ Follow\n\nGrab is coming under pressure by locals everywhere for not paying enough. Trouble ahead\n\nReply\n\nLike\n\n(4)\n\nLiked By Analyst\n\n![](https:\/\/seekingalpha.com\/images\/users_profile\/061\/375\/197\/small_pic.png?t=ae0a20443a)\n\n[Jia Ming Eow](https:\/\/seekingalpha.com\/author\/jia-ming-eow)\n\nJul 30, 2025, 11:09 AM\n\n[Analyst](https:\/\/about.seekingalpha.com\/become-an-analyst#source=first_level_url%3Anews%7Csection%3Acomments%7Csection_asset%3Abadge%7Cbutton%3AContributor)\n\nPremium\n\n[Comments (173)](https:\/\/seekingalpha.com\/author\/jia-ming-eow)\n\n\\|\n\n\\+ Follow\n\n[@Manfred M.](https:\/\/seekingalpha.com\/user\/49079457#source=section%3Acomment%7Csection_asset%3Acomment%7Cfirst_level_url%3Aarticle%7Ccontent_id%3A4805856%7Ccomment_id%3A100762793) could be a long term regulation problem that develops, but IMO not a big risk\n\nReply\n\nLike\n\n(3)\n\nAdd A Comment\n\nDisagree with this article? [Submit your own](https:\/\/about.seekingalpha.com\/become-an-analyst).\n\nTo report a factual error in this article,\n\nclick here\n\n.\n\nYour feedback matters to us\\!\n\n### About GRAB Stock\n| Symbol | Last Price | % Chg |\n|---|---|---|\n| [GRAB](https:\/\/seekingalpha.com\/symbol\/GRAB#source=first_level_url%3Aarticle%7Csection%3Aright_rail%7Csection_asset%3Aabout%7Cline%3A1%7Csymbol%3AGRAB) Grab Holdings Limited | 3\\.68 | 1\\.38% |\n| Post | 3\\.70 | 0\\.54% |\n\n- 1D\n- 5D\n- 1M\n- 6M\n- 1Y\n- 5Y\n- 10Y\n\n###### Chart\nCombination chart with 2 data series.\n\nView as data table, Chart\n\nThe chart has 1 X axis displaying Time. Data ranges from 2025-04-09 00:00:00 to 2026-04-09 00:00:00.\n\nThe chart has 1 Y axis displaying values. Data ranges from 3.53 to 6.45.\n\nCreated with Highcharts 12.5.0\n\nMay '25\n\nAug '25\n\nNov '25\n\nFeb '26\n\n2\n\n4\n\n6\n\n8\n\nEnd of interactive chart.\n\nMarket Cap\n\n\\$14.88B\n\nPE (FWD)\n\n38\\.75\n\nYield\n\n\\-\n\nRev Growth (YoY)\n\n20\\.49%\n\nShort Interest\n\n6\\.07%\n\nPrev. Close\n\n\\$3.63\n\n[grab Summary](https:\/\/seekingalpha.com\/symbol\/GRAB\/virtual_analyst_report)\n\nCompare to Peers\n\n### More on GRAB\n### [WeRide and Grab launch public robotaxi operations in Singapore](https:\/\/seekingalpha.com\/news\/4571201-weride-and-grab-launch-public-robotaxi-operations-in-singapore#source=section_asset%3Amore-on%7Csection%3Aright_rail%7Cfirst_level_url%3Aarticle%7Cline%3A1%7Cpos%3Aundefined)\n![](https:\/\/seekingalpha.com\/images\/users_profile\/050\/054\/746\/big_pic.png?io=w36)\n\n### [Grab Holdings: Local Network Effect Advantage And Dominant Market Position](https:\/\/seekingalpha.com\/article\/4886271-grab-holdings-local-network-effect-advantage-dominant-market-position#source=section_asset%3Amore-on%7Csection%3Aright_rail%7Cfirst_level_url%3Aarticle%7Cline%3A2%7Cpos%3Aundefined)\n[Fund Letter Stock Ideas](https:\/\/seekingalpha.com\/author\/fund-letter-stock-ideas#source=section_asset%3Amore-on%7Csection%3Aright_rail%7Cfirst_level_url%3Aarticle%7Cline%3A2%7Cpos%3Aundefined)\n### [Analysts applaud Grab's deal to enter Taiwan via the Foodpanda deal](https:\/\/seekingalpha.com\/news\/4567372-analysts-applaud-grabs-deal-to-enter-taiwan-via-the-foodpanda-deal#source=section_asset%3Amore-on%7Csection%3Aright_rail%7Cfirst_level_url%3Aarticle%7Cline%3A3%7Cpos%3Aundefined)\n### [Grab to buy Delivery Hero’s foodpanda Taiwan business for \\$600M](https:\/\/seekingalpha.com\/news\/4567245-grab-to-buy-delivery-heros-foodpanda-taiwan-business-for-600m#source=section_asset%3Amore-on%7Csection%3Aright_rail%7Cfirst_level_url%3Aarticle%7Cline%3A4%7Cpos%3Aundefined)\n\n### Related Stocks\n| Symbol | Last Price | % Chg |\n|---|---|---|\n| [GRAB](https:\/\/seekingalpha.com\/symbol\/GRAB#source=first_level_url%3Anews%7Csection%3Aright_rail%7Csection_asset%3Aabout%7Cline%3A1%7Csymbol%3Agrab) GRAB | 3\\.68 | 1\\.38% |\n| Post: | 3\\.70 | 0\\.54% |\n\n- 1D\n- 5D\n- 1M\n- 6M\n- 1Y\n- 5Y\n- 10Y\n\n###### Chart\nChart with 160 data points.\n\nView as data table, Chart\n\nThe chart has 1 X axis displaying Time. Data ranges from 2026-04-06 09:30:00 to 2026-04-09 16:00:00.\n\nThe chart has 1 Y axis displaying values. Data ranges from 3.5 to 3.775.\n\nCreated with Highcharts 12.5.0\n\nApr 6\n\nApr 7\n\nApr 8\n\nApr 9\n\n3\\.50\n\n3\\.75\n\n4\\.00\n\nEnd of interactive chart.\n\nCompare\n\n### Trending Analysis\n- ![Quantryon Capital profile picture](https:\/\/seekingalpha.com\/images\/users_profile\/062\/493\/212\/big_pic.png?io=w36&t=c4c06ec7e7)\n  \n  ### [Microsoft: The Selloff Looks Better Than The Story](https:\/\/seekingalpha.com\/article\/4889520-microsoft-the-selloff-looks-better-than-the-story#source=first_level_url%3Aarticle%7Csection%3Atrending_articles%7Cline%3A1)\n- ![Summit Research profile picture](https:\/\/seekingalpha.com\/images\/users_profile\/053\/884\/093\/big_pic.png?io=w36&t=13da373018)\n  \n  ### [Micron: The Memory Bottleneck Is Shifting - And Market Hasn't Caught Up](https:\/\/seekingalpha.com\/article\/4889484-micron-the-memory-bottleneck-is-shifting-and-market-hasnt-caught-up#source=first_level_url%3Aarticle%7Csection%3Atrending_articles%7Cline%3A2)\n- ![Bears of Wall Street profile picture](https:\/\/seekingalpha.com\/images\/users_profile\/048\/206\/420\/big_pic.png?io=w36&t=1aff233488)\n  \n  ### [Palantir: This Could End Badly](https:\/\/seekingalpha.com\/article\/4889491-palantir-this-could-end-badly#source=first_level_url%3Aarticle%7Csection%3Atrending_articles%7Cline%3A3)\n- ![Michael Del Monte profile picture](https:\/\/seekingalpha.com\/images\/users_profile\/016\/009\/792\/big_pic.png?io=w36&t=4701d03460)\n  \n  ### [Intel Foundry Services Is Materializing As The Turnaround Of The Decade](https:\/\/seekingalpha.com\/article\/4889573-intel-foundry-services-is-materializing-as-the-turnaround-of-the-decade#source=first_level_url%3Aarticle%7Csection%3Atrending_articles%7Cline%3A4)\n- ![Oliver Rodzianko profile picture](https:\/\/seekingalpha.com\/images\/users_profile\/058\/583\/751\/big_pic.png?io=w36&t=80fff56ff8)\n  \n  ### [Alphabet Stock Defies AI's Gravity](https:\/\/seekingalpha.com\/article\/4889600-alphabet-stock-defies-ai-gravity#source=first_level_url%3Aarticle%7Csection%3Atrending_articles%7Cline%3A5)\n\n[See All Analysis »](https:\/\/seekingalpha.com\/latest-articles#source=first_level_url%3Aarticle%7Csection%3Atrending_articles%7Cbutton%3Amore)\n\n### Trending News\n- 1\n  \n  ### [Bessent, Powell call urgent meeting with bank CEOs about Anthropic model risks](https:\/\/seekingalpha.com\/news\/4573910-bessent-powell-call-urgent-meeting-with-bank-ceos-about-anthropic-model-risks#source=first_level_url%3Aarticle%7Csection%3Atrending_news%7Cline%3A1)\n- 2\n  \n  ### [Software sector plunges, cybersecurity names hit hardest, as AI disruption concerns persist](https:\/\/seekingalpha.com\/news\/4573853-software-sector-plunges-cybersecurity-names-hit-hardest-as-ai-disruption-concerns-persist#source=first_level_url%3Aarticle%7Csection%3Atrending_news%7Cline%3A2)\n- 3\n  \n  ### [Meta pulls down law firm ads seeking clients over Facebook, Instagram addiction](https:\/\/seekingalpha.com\/news\/4573923-meta-pulls-down-law-firm-ads-seeking-clients-over-facebook-instagram-addiction#source=first_level_url%3Aarticle%7Csection%3Atrending_news%7Cline%3A3)\n- 4\n  \n  ### [Texas Pacific Land plunges after CEO of top shareholder Horizon Kinetics dies](https:\/\/seekingalpha.com\/news\/4573864-texas-pacific-land-plunges-after-ceo-of-top-shareholder-horizon-kinetics-dies#source=first_level_url%3Aarticle%7Csection%3Atrending_news%7Cline%3A4)\n- 5\n  \n  ### [Anthropic weighs building its own AI chips: Reuters](https:\/\/seekingalpha.com\/news\/4573924-anthropic-weighs-building-its-own-ai-chips-reuters#source=first_level_url%3Aarticle%7Csection%3Atrending_news%7Cline%3A5)\n\n[See All News »](https:\/\/seekingalpha.com\/market-news#source=first_level_url%3Aarticle%7Csection%3Atrending_news%7Cbutton%3Amore)\n\nTo ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.\n\nIs this happening to you frequently? Please [report it on our feedback forum.](https:\/\/help.seekingalpha.com\/kb-tickets\/new)\n\nIf you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.\n\n![](https:\/\/seekingalpha.com\/_sa_track\/samw\/noscript?noscript[disabled]=true)\n\n![](https:\/\/www.facebook.com\/tr?id=228550053985270&ev=PageView&noscript=1)","attrs_readable_markdown":"![Chic young Asian man using mobile app device on smartphone to order a taxi pick up service by the urban road in downtown city street. Speedy and trustworthy service. Carsharing and business on the go themes](https:\/\/static.seekingalpha.com\/cdn\/s3\/uploads\/getty_images\/1323994547\/image_1323994547.jpg?io=getty-c-w750)\n\nwhitebalance.oatt\n\nGrab ([GRAB](https:\/\/seekingalpha.com\/symbol\/GRAB#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)) is positioning itself to be the super-app in Southeast Asia (SEA), offering services from ride hailing, food delivery, and digital payments. It combines apps such as Uber, DoorDash, and PayPal, all in one. Their diversified operations and building dominance in SEA create a huge buying opportunity for future potential growth. Grab also has ~\\$6 billion in cash flow, with a market cap of ~\\$22 billion, trading around 27% of cash, which stands at \\$1.44 per share. Grab's growth is not slowing down; being positioned in an unsaturated market, as smaller local firms die down, Grab will capture the majority of the market share. Hence, I'm initiating a 'Strong Buy'.\n\n## **Thesis**\nGrab is to many just SEA's Uber ([UBER](https:\/\/seekingalpha.com\/symbol\/UBER#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)), which was also my initial impression, having lived in Malaysia for 14 years. With their diversified operations, Grab is positioning itself in SEA for daily life as everyone is starting to come online. They are positioning themselves with services that are common in Europe and the US, such as ride-hailing, food delivery, financial services, and some e-commerce.\n\nThis means that their growth potential is high, compared to America's or Europe's, whose markets are getting more and more saturated, whereas SEA's digital adoption is just starting. Uber sold their SEA business to Grab back in 2018, as what Grab can do better than Uber is being more localized and being popular in these regions. Their brand visibility and reliability are only ever increasing, as Uber is no longer a competitor but a shareholder of Grab, which to me shows optimism in Grab to execute in SEA. Grab is a long-term play; it is offering services that are widely available in Europe and the US and offering them in SEA with no competitors like Uber interfering. Demand for these services will simply increase as GDP gets larger and as cities get gentrified, and Grab has positioned itself to be a long-term winner with a potential high CAGR.\n\n## **Comparing SEA and Europe**\nAs I mentioned in my thesis, their growth potential is high operating in SEA compared to the Americas or Europe. I'm going to compare a few metrics to explain why SEA is the next big market that Grab will capitalize on.\n\nSEA Europe US Population [~700M](https:\/\/www.worldometers.info\/world-population\/south-eastern-asia-population\/#:~:text=Countries%20in%20South-Eastern%20Asia&text=The%20current%20population%20of%20South,the%20latest%20United%20Nations%20data.) [~744M](https:\/\/www.worldometers.info\/world-population\/europe-population\/) [~347M](https:\/\/www.worldometers.info\/world-population\/us-population\/) Forecast 2025 GDP growth [~4.7%](https:\/\/www.aura.co\/news-and-insights\/southeast-asia-economic-update-1q-2025) [~1.1%(EU)](https:\/\/economy-finance.ec.europa.eu\/economic-forecast-and-surveys\/economic-forecasts\/spring-2025-economic-forecast-moderate-growth-amid-global-economic-uncertainty_en) [~1.4%](https:\/\/www.deloitte.com\/us\/en\/insights\/topics\/economy\/us-economic-forecast\/united-states-outlook-analysis.html) Median Age [30\\.9](https:\/\/www.worldometers.info\/world-population\/south-eastern-asia-population\/#:~:text=Countries%20in%20South-Eastern%20Asia&text=The%20population%20density%20in%20South,miles%29.&text=The%20median%20age%20in%20South-Eastern%20Asia%20is%2030.9%20years.) [44\\.7(EU)](https:\/\/ec.europa.eu\/eurostat\/web\/interactive-publications\/demography-2025#:~:text=Median%20age%20of%20the%20population%20in%20the%20EU%3A%2044.7%20years) [~38.5](https:\/\/www.worldometers.info\/world-population\/us-population\/#:~:text=The%20median%20age%20in%20the%20United%20States%20is%2038.5%20years.) Smartphone penetration [~80%](https:\/\/www.researchgate.net\/figure\/Mobile-phone-penetration-rate-in-Southeast-Asia-from-2010-to-2025-Rysunek-3-Wskaznik_fig1_382211243) [89%](https:\/\/www.gsma.com\/solutions-and-impact\/connectivity-for-good\/mobile-economy\/europe\/) [~91%](https:\/\/www.pewresearch.org\/internet\/fact-sheet\/mobile\/#:~:text=The%20vast%20majority%20of%20Americans,smartphone%20ownership%20conducted%20in%202011.) Bank account ownership [\\>70%](https:\/\/www.temasek.com.sg\/content\/dam\/temasek-corporate\/news-and-views\/resources\/reports\/future-of-southeast-asia-digital-financial-services.pdf) [~96%](https:\/\/www.wsbi-esbg.org\/number-of-unbanked-adult-eu-citizens-more-than-halved-in-the-last-four-years\/) [~96%](https:\/\/fdic.gov\/news\/press-releases\/2024\/fdic-survey-finds-96-percent-us-households-were-banked-2023) Digital wallet usage [~83%](https:\/\/www.visa.com.vn\/content\/dam\/VCOM\/regional\/ap\/singapore\/global-elements\/documents\/visa-cpa-2023-report-ipvmc-final.pdf) [\\<20% (Germany and UK)](https:\/\/uk.finance.yahoo.com\/news\/europe-digital-payments-report-2025-080200837.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAMbcOuNPb_XDxrdvSY9rRcDlpnwIYyYj58vkRxXrtzBn1IOzDvme0UKVaHeME3q9c6hvhEvqt0S-sfaVRHUQauv5k0Ho8-EAK9esYQIyrcHQOoiBueQsVz3QpwMsQVfxHCjPnEQMvTZ3jT15VeZooRNeXvF4w0rDD0xXVzU_2HDK) [~70%](https:\/\/www.pymnts.com\/mobile-wallets\/2025\/us-in-store-mobile-wallet-use-sees-4-3percent-increase-since-2022\/#:~:text=70%25%20share%20of%20consumers%20in,their%20last%20in-store%20transaction.)\n\nSEA is growing at a faster pace than Europe and the US, as the economies in SEA are only getting larger. Despite only being 11 countries, their population is only ~44 million less than Europe and is approximately double that of the US. This means their addressable market is only increasing, which is evident in their user growth (explained in the next segment). A higher GDP growth suggests that prices in both Europe and SEA on a constant currency are getting more similar (prices of Grab\/Uber will be similar from point A to B in both locations), as Grab's revenue will increase simply from a growing PPP and income in SEA. Ride-hailing services may also be a luxury to individuals who rely on public transport, as a higher GDP and income will lead to a higher demand for Grab.\n\n[![ubers usage by age](https:\/\/static.seekingalpha.com\/uploads\/2025\/7\/21\/61375197-17531235749100158_origin.png?io=w640)](https:\/\/static.seekingalpha.com\/uploads\/2025\/7\/21\/61375197-17531235749100158_origin.png)\n\nUber Estimate Age Demographics (DemandSage)\n\nThrough surveys, this is the estimated [age group demand split](https:\/\/www.demandsage.com\/uber-statistics\/) for Uber. It shows that younger generations have used Uber's ride-hailing services more than older generations. With a significantly lower median age in SEA, I believe that this can be reflected in Grab's demand as well, as Grab stands to gain a larger consumer base than the US and Europe since the median age is lower. There remains substantial room for growth, especially for their financial segments, as smartphone penetration in SEA continues to rise. Increased access to mobile devices is expected to drive further demand for their digital services, such as ride-hailing and digital payments. These statistics also show that the market is more saturated in Europe and the US, as Uber is already well known alongside many competitors, whereas Grab doesn't have to compete with Uber or fear it even enters the market (sold SEA business to Grab in 2018).\n\nA lower bank account ownership and high digital wallet usage are also good metrics. This strays away from using traditional banking or any credit or debit card, but QR-scanned payments. These are popular in SEA countries like Malaysia, using Touch n GO. This is evident with [79% mobile wallet payment](https:\/\/fintechnews.sg\/102286\/mobilepayments\/e-wallet-southeast-asia\/) usage in SEA. With a lower banking population, using these super-apps is easy for consumers, as simply scanning a QR code and paying through a smartphone may be smoother than carrying a card. Though cards are still the preferred method of paying, high digital adoption leads to more loan and payment growth potential. This differs from major cities like London, where paying with cards is the most widely used option, rather than scanning a QR code at a roadside store. Digital wallet has a wide presence in SEA through these QR code payments, which GrabPay can capitalize on. (Apple Pay counts as a digital wallet payment but is a card payment. SEA countries like Malaysia's digital wallet refer to scanning a QR code and paying through the third-party app.)\n\n## **Grab's ride-hailing segment**\nGrab can dominate the SEA region, as Uber left the region due to Grab being able to offer services that are appropriate for each local region. For example, in Indonesia, their [total motorcycles are up to 112M](https:\/\/worldpopulationreview.com\/country-rankings\/motorcycles-by-country), compared to 8.6M in the US, as Southeast Asia countries also top most of the chart. Certain figures also show that th[e 2-wheeler is significantly preferred over the 4-wheeler.](https:\/\/vietnamnet.vn\/en\/vietnam-leads-in-motorbike-usage-amongst-southeast-asian-countries-2297156.html#:~:text=Indonesia%20has%20a%20motor%20vehicle,many%20difficulties%20in%20the%20region.) Grab's offering motor ride-hailing services is just 1 example of how Uber's glocalization didn't work as it couldn't get up to standard and adapt to SEA's lifestyle, which Grab can.\n\nUber couldn't reflect each country's cultural values, as their glocalization failed. They had cash to invest and burn but couldn't figure out how to retain users.\n\n[![profit.\/loss in q1 2025](https:\/\/static.seekingalpha.com\/uploads\/2025\/7\/21\/61375197-17531546937160456_origin.png?io=w640)](https:\/\/static.seekingalpha.com\/uploads\/2025\/7\/21\/61375197-17531546937160456_origin.png)\n\nProfit\/Loss in Q1 2025 (Grab's Investor Relations)\n\nThis is seen as Grab continues to burn cash and only recently turned a profit in Q1 2025 earnings. In Malaysia 2021, Grab had [94% market share](https:\/\/cfdyhvvf.manus.space\/) whilst 32 other registered e-hailing apps (yes, 32 apps) had the other 6%. Grab's market share is now over [95% for ride hailing and 50% for food delivery](https:\/\/bytebridge.medium.com\/comprehensive-report-on-grab-holdings-daa9e7d3918f), still maintaining its dominant position. All these other apps have 1 similarity and 1 difference to Grab; all firms can match local cultures, but the other firms do not have the same amount of cash as Grab to burn. Both factors (culture and cash flow) are important is because Uber had cash to burn but couldn't appeal to local cultures.\n\nFrom this view, it may be seen as hard for Grab to actually retain its customers, because competition can easily come in and compete with Grab. However, I would disagree. These small firms, as margins shrink and user base retention falls, will exit the market due to profitability issues, or simply be limited to their small market share. This is seen in 2024 as [Gojek exited Vietnam](https:\/\/en.vcci.com.vn\/ride-hailers-race-for-market-share-after-gojek%E2%80%99s-exit) due to struggling to achieve profitability despite '*aggressive efforts, including promotions and localization strategies*'. In the long term, I feel, these smaller firms will simply die out, and the challenge that Grab has is to maintain and increase retention for its existing user base.\n\nMore examples to back up this claim with Uber leaving SEA and Gojek leaving Vietnam are also [Gojek leaving Thailand (did losses in 2019 and 2020)](https:\/\/www.thejakartapost.com\/paper\/2021\/07\/07\/gojek-exits-thai-market-sells-business-to-airasia.html?u) and [Foodpanda leaving Thailand.](https:\/\/www.dbs.com.sg\/treasures\/aics\/templatedata\/article\/recentdevelopment\/data\/en\/DBSV\/052025\/GRAB_US_05022025.xml) Smaller firms like Maxim also face regulatory issues, [told to cease operations](https:\/\/www.malaymail.com\/news\/malaysia\/2025\/05\/09\/loke-russian-e-hailing-apps-indrive-maxim-ordered-to-cease-operations-over-permit-insurance-violations\/176192) but are now able to [operate under probation](https:\/\/www.freemalaysiatoday.com\/category\/nation\/2025\/07\/23\/e-hailing-firms-maxim-indrive-granted-3-month-probation). These businesses face the risk of not even being able to operate at all, which doesn't show the stability like Grab. Most e-hailing apps are simply not as widely available as Grab, as Grab still maintains its market share and has more users and drivers.\n\nThe idea for these smaller firms is simply to have small and limited operations for specific areas and be profitable for these small firms, or attempt to expand nationwide and not be profitable (examples above with Foodpanda and Gojek). Grab has maintained its market share in ride-hailing, as mentioned above, from 2021 to 2024. It is unlikely their user base will get affected, as Grab runs the majority of the ride-hailing operations in SEA, as Grab's position remains dominant.\n\n## **Grab's users**\n[![change in platform transacting users](https:\/\/static.seekingalpha.com\/uploads\/2025\/7\/21\/61375197-17531561791450627_origin.png?io=w640)](https:\/\/static.seekingalpha.com\/uploads\/2025\/7\/21\/61375197-17531561791450627_origin.png)\n\nGrab's Platform Transacting Users (Grab's Investor Relations)\n\nGrab's user growth shows that their promotions and burning cash to retain their user base have been successful. This is a huge green flag for Grab trying to build a super-app, as they try to integrate into people's everyday lives, especially for a firm operating in business-to-consumer (B2C). I believe that higher smartphone penetration, more exposure to the digital world, and people needing services such as mobility and deliveries, all lead to a higher user base. With so much B2C choice in SEA and Grab being able to maintain growth, while turning a profit in Q1, this means that this growth is just starting. 119 million of a 700 million population is also only 17% penetration on a yearly metric, and only ~6.4% on a monthly metric. This shows that Grab has so much more room to grow, as the integration of technology similar to Europe and the US through technology transfer is just starting, as smartphone penetration and bank account ownership are all still lower than in Europe and the US (table above).\n\nFor the next few quarters, key metrics such as maintaining users as well as its profit margin are things to look out for, as the adoption of Grab services is trending upwards. Since in a B2C model consumers can just swap to a different service, it is essential for user growth to trend upwards and Grab maintain their dominant position.\n\n## **Grab's financial services segment**\nGrab offers services such as GrabPay, lending, digital banking (GXS Bank) and insurance. Grab has guided for this segment to [break even by 2026](https:\/\/investors.grab.com\/news-and-events\/news-details\/2022\/Grab-targets-Group-Adjusted-EBITDA-breakeven-by-H2-2024-as-it-accelerates-path-to-profitability\/default.aspx), as this is currently trading at a negative adjusted EBITDA. In [Q4 2024 earnings](https:\/\/seekingalpha.com\/article\/4770981-grab-holdings-limited-grab-q4-2024-earnings-call-transcript#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link), it was noted that '*90% of the GXS Bank customers in Malaysia came from Grab and the acquisition cost is minimal. The speed at which we've been able to gather deposits and open new accounts we're now up to 4 million new accounts*'.\n\nThis shows that this has huge potential for further growth. Users familiar with Grab mobility or delivery services might try Grab's financial services first if they don't have a bank account, as the reliable app is already at the front of their minds. With their proven consistent user growth in mobility and delivery, this can translate to their financial services user growth. When adjusted EBITDA is no longer negative, it could be a high-growth high-margin business.\n\n[![chagne in fianncial services and loan portoflio yoy](https:\/\/static.seekingalpha.com\/uploads\/2025\/7\/22\/61375197-17532014003555744_origin.png?io=w640)](https:\/\/static.seekingalpha.com\/uploads\/2025\/7\/22\/61375197-17532014003555744_origin.png)\n\nFinancial Services Revenue and Adjusted EBITDA Change YoY (Grab's Investor Relations)\n\nIn Q1 2025, revenue grew by 36%, with the loan portfolio growing by 56%, all impressive numbers. It is now all about execution, as seen in their adjusted EBITDA%, which has also been falling.\n\n[![2025 guidance](https:\/\/static.seekingalpha.com\/uploads\/2025\/7\/22\/61375197-17532015121522925_origin.png?io=w640)](https:\/\/static.seekingalpha.com\/uploads\/2025\/7\/22\/61375197-17532015121522925_origin.png)\n\n2025 Guidance (Grab's Investor Relations)\n\nIf next quarter's results beat estimates and align with the updated guidance shown in Q1 of a 47%-53% YoY increase in Group Adjusted EBITDA, Grab should look to comfortably achieve its goal of positive adjusted EBITDA by 2026. A thing to note for future earnings is user growth as well, as user growth needs to continue for the financial segment to grow (using mobility\/delivery services leads to trying financial services as well). More users also create a larger network effect, as when more people start using GrabPay to transfer money like PayPal, it will attract more users to Grab.\n\nJust to keep in mind, the long-term potential and penetration are massive, as GDP per capita rises fast and bank usage is low. In China, Alipay is a huge success, and Grab is sort of trying to replicate paying through GrabPay. SEA is an emerging market where demand will only increase for fintech and ride-hailing services as the cities get more and more advanced, as the potential addressable market is hundreds of millions of users that still have no exposure to Grab fintech products.\n\n## **Grab and Uber**\nCompetition might be high as local businesses adapt to food delivery and such services, but Grab still has the majority market share in SEA. A risk in these scenarios is that the huge US firms to expand into SEA and dominate the market, as Uber has in this scenario. However, Uber has worked with Grab since 2018, so there should be no fear that a huge firm will come in and compete with Grab, as Uber owns [~14% of Grab.](https:\/\/sg.finance.yahoo.com\/news\/brief-uber-technologies-reports-14-204114191.html) Another positive is that Dara Khosrowshahi, Uber's CEO, is on the [board of directors for Grab,](https:\/\/investors.grab.com\/corporate-governance\/board-of-directors\/) as Grab is able to have direct help and navigation with Uber's success in the ride-hailing industry. There is still a chance that an established firm might enter the SEA market, but with Uber's failed attempt, there will be huge doubts for any new entrant. With no real competitors in the market for most of SEA, Grab's market share is highly unlikely to be negatively affected in the long term, especially for ride-hailing, maintaining its dominance.\n\n## **Grab acquiring GoTo implications**\nGoTo (or Gojek) is Grab's competitor when it comes to food delivery services, as mentioned above, Grab has ~50%, while GoTo held ~10.5% back in 2023. Grab has been in talks with GoTo to acquire their operations [since 2021](https:\/\/en.wikipedia.org\/wiki\/Gojek), as investors speculate that the acquisition will happen because of Grab's large free cash flow. Sources say that Grab and GoTo have been in [advanced talks](https:\/\/www.reuters.com\/markets\/deals\/grab-goto-advanced-merger-talks-sources-say-2025-02-04\/) in Feb this year, also [eyeing up a loan](https:\/\/www.reuters.com\/markets\/deals\/grab-seeks-2-billion-loan-possible-goto-takeover-bloomberg-news-reports-2025-03-26\/) back in March. Grab's cash has to go somewhere, and GoTo is one of the top choices to potentially monopolize the ride-hailing and delivery industries in SEA, as their market share in Indonesia could be [as high as over 90%](https:\/\/www.reuters.com\/sustainability\/boards-policy-regulation\/grab-goto-merger-talks-face-indonesian-regulatory-hurdles-sources-say-2025-06-19\/).\n\nThe main component Grab is targeting is GoTo's Indonesia operations, as Grab holds [~70% of ride-hailing market share](https:\/\/miracuves.com\/battle-of-the-super-apps-gojek-vs-grab\/) in SEA, while GoTo holds ~60% in Indonesia and a '*significant portion of food delivery through GoFood.'* Indonesia being the largest GDP in all of SEA means that Grab is facing competition in the largest addressable market in SEA. If Grab does acquire GoTo, their dominance in SEA will get larger. GoTo has already exited multiple SEA markets (mentioned above), and the only market Grab has to compete with GoTo is Indonesia (GoTo has a dominant position over Grab). This will heavily benefit Grab if the deal executes, as in the long term, Grab would only compete with smaller local firms as Grab will maintain its user base and continue to capture the majority of the market share (referring back to the argument that Grab has cash to burn and others don't, so Grab can retain more potential customers if GoTo is no longer competition). I would like to see Grab acquire GoTo as soon as possible, as Grab will heavily benefit from this deal in the long term.\n\n## **Risks**\nGrab did not repurchase any shares in Q1 and issued a [\\$1.25B convertible senior note](https:\/\/seekingalpha.com\/news\/4456675-grab-holdings-files-to-sell-125b-convertible-senior-notes-due-2030#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) upped to \\$1.5B, to raise cash shows that Grab is planning something big in my view, such as acquiring GoTo (Gojek), a major player in Indonesia. Mentioned previously of poor margins and high competition, [GoTo has been down 85% all time](https:\/\/www.tradingview.com\/symbols\/IDX-GOTO\/?timeframe=ALL). I believe Grab, in the long term, will benefit from this acquisition if it happens, but execution risk still exists when such a deal\/acquisition takes place if it does.\n\nThey are raising more cash, which could suggest that Grab could overpay for GoTo, despite their market cap near its bottom. However, if Grab executes this at a good price and does not overpay, Grab's investor confidence will increase significantly. Grab and GoTo also have [regulatory pressure](https:\/\/eastasiaforum.org\/2025\/07\/03\/grabs-acquisition-of-goto-is-a-big-test-for-indonesias-competition-regulators\/#:~:text=In%20Brief,consumers%2C%20innovation%20and%20small%20businesses), as more time may be needed for Grab to complete the deal, which may decrease investor confidence (I believe investors want GoTo under Grab to increase market dominance). [Grab has also denied reports](https:\/\/www.techinasia.com\/news\/grab-denies-reports-7b-goto-acquisition) of any discussion between the parties, as this may lead to lower long-term optimism if Grab faces competition with Gojek in some SEA countries such as Indonesia.\n\nAnother risk is that SEA doesn't have fully developed public transport yet, which may lower Grab's demand as trains\/trams may be more suitable and cheaper for individuals when they are widely available. Malaysia is the [3rd biggest SEA](https:\/\/www.theglobaleconomy.com\/rankings\/gdp_per_capita_ppp\/South-East-Asia\/) country in terms of GDP per capita, with a capital (Kuala Lumpur) that has a good public transport system. Now focusing on a specific Malaysian state, Penang, is home to high foreign direct investment (FDI) inflows into the state, including US tech firms such as Lam Research ([LRCX](https:\/\/seekingalpha.com\/symbol\/LRCX#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)), Intel ([INTC](https:\/\/seekingalpha.com\/symbol\/INTC#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)), Dell ([DELL](https:\/\/seekingalpha.com\/symbol\/DELL#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)), and many more. Penang has high inflows of FDI as well as being ranked [top 3-5 in terms](https:\/\/en.wikipedia.org\/wiki\/List_of_Malaysian_states_by_GDP) of GDP and GDP per capita among Malaysian states and territories. However, they don't have a developed public transport system. Something to point out on the stats: Kuala Lumpur and Labuan are top 5 but are not Malaysian states. Kuala Lumpur is a territory in Selangor, and Labuan is a territory in Sabah, as Penang ranks high in both metrics in terms of Malaysian states, only really behind Selangor (which has KL capital).\n\nIn Penang, there are 2 sides, one that is with the mainland (island 1) and one that is not, connected by a bridge (island 2). The capital is on island 2 and away from the mainland. Island 2 has no rail systems throughout the whole city, and only recently started construction within island 2 and is [expected to be ready in 2031](https:\/\/www.scoop.my\/news\/264447\/mutiara-lrt-project-kicks-off-as-penangs-six-year-construction-timeline-begins\/). The only existing rail system in Penang is on island 1 in the corner of the state, connecting Penang to the country's capital, Kuala Lumpur. To travel from island 1 to 2, it is only via car (drive yourself or Grab), bus, or ferry. There are also no plans to link one island to the other today via a rail system.\n\nThis is one example, but the idea is that Grab can penetrate these markets because their public transport systems are so underdeveloped. Individuals may be forced to use Grab during certain times, such as when the bus stops running or a location far away from buses. This is a long-term risk, as when public transport systems get more developed for SEA countries and for smaller cities such as Penang, Grab's demand will fall as users have more choices. Being cheaper with minimal changes to users' daily lives, trains may be the first choice for Grab. If Grab sees a noticeable demand decline due to increased public transport availability throughout SEA, it will show that Grab services are no longer needed as the norm for some individuals, but as a luxury.\n\nAnother long-term risk is full self-driving (FSD), as Tesla Robotaxi and Alphabet's Waymo are already launching in the US with hundreds of thousands of paid rides weekly. With a lower cost for FSD, regular hailing service will be obsolete if FSD is at full scale. However, a key thing to note for this risk is location. This is SEA, not Europe or the US. Motorcycles are widespread, and roads could be argued to be more dangerous, being flooded by motorcycles and uneven roads. FSD will need to be fully developed and launched in Europe and the US to even start considering dropping it in SEA due to its different road conditions, as this may be a risk whenever FSD is a norm in society in Western countries. With Uber partnering up with Waymo, Uber's participation in Grab could lead to FSD being brought over to SEA, which will be run on Grab's platform anyway, as Grab is already the dominant player with ties to Uber.\n\n## **Valuation**\n[![Grab's Valuation Metric](https:\/\/static.seekingalpha.com\/uploads\/2025\/7\/22\/61375197-17532022056889076_origin.png?io=w640)](https:\/\/static.seekingalpha.com\/uploads\/2025\/7\/22\/61375197-17532022056889076_origin.png)\n\nGrab's Valuation Metric (Seeking Alpha Valuation Tab)\n\nGrab from a P\/E GAAP basis could seem overvalued, considering Uber, Lyft, and DoorDash trades at forward P\/E of ~32, ~65, and ~112, Grab does look a little bit expensive.\n\nGrab is a long-term play, as the potential customers for SEA is so large, and Grab is just starting. Uber, Lyft ([LYFT](https:\/\/seekingalpha.com\/symbol\/LYFT#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)), and DoorDash ([DASH](https:\/\/seekingalpha.com\/symbol\/DASH#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)) are already established players operating in saturated markets. Grab is also building a 'super-app', combining fintech, ride hailing, and mobility. Their revenue growth for any segment isn't slowing down, and will only get better as exposure gets larger.\n\nGrab also trades with a huge cash flow, more than 30% of their market cap, which, after debt, none of the firms can compare to. With sources estimating that Grab will [trade at a P\/E of 41](https:\/\/finbox.com\/DB:A6I\/explorer\/pe_fwd\/) by the end of 2027, Grab is not that expensive considering that their financial segment is still at a negative adjusted EBITDA. Once this is positive and Grab is able to show it can be positive by 2026 (direction is heading that way), Grab's long-term user\/revenue trajectory as SEA starts adopting digital services could be double or triple.\n\n## **Conclusion**\nGrab is a long-term play, betting on the idea that Grab can execute in SEA as the next super-app despite high local competition that can undercut their prices. Their revenue and adjusted EBITDA are all trending in the right direction, as they continue to dominate the mobility and delivery markets. It is only time before smaller local players can't keep up with Grab, as they are limited to their small market share and lower revenue.\n\nWith their next earnings report in a few weeks, we will have more clarity on Grab's trajectory and whether it is still maintaining its forecast of 2026 positive adjusted EBITDA, which the trend should be perfectly in line with as Q1 showed their stable user growth. Grab is already the dominant player in SEA, will maintain its dominant position as offering products that are not widely common and available in SEA, yet creates high-growth potential for Grab, and it is just starting.\n\n1\\.93K Followers\n\n**Analyst’s Disclosure:** I\/we have a beneficial long position in the shares of GRAB either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.\n\n**Seeking Alpha's Disclosure:** Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.","meta_canonical":null}

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URL	https://seekingalpha.com/article/4805856-grab-seas-superapp-destined-for-growth
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Meta Title	Grab: Southeast Asia's SuperApp Destined For Growth (NASDAQ:GRAB) \| Seeking Alpha
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Boilerpipe Text	whitebalance.oatt Grab ( GRAB ) is positioning itself to be the super-app in Southeast Asia (SEA), offering services from ride hailing, food delivery, and digital payments. It combines apps such as Uber, DoorDash, and PayPal, all in one. Their diversified operations and building dominance in SEA create a huge buying opportunity for future potential growth. Grab also has ~$6 billion in cash flow, with a market cap of ~$22 billion, trading around 27% of cash, which stands at $1.44 per share. Grab's growth is not slowing down; being positioned in an unsaturated market, as smaller local firms die down, Grab will capture the majority of the market share. Hence, I'm initiating a 'Strong Buy'. Thesis Grab is to many just SEA's Uber ( UBER ), which was also my initial impression, having lived in Malaysia for 14 years. With their diversified operations, Grab is positioning itself in SEA for daily life as everyone is starting to come online. They are positioning themselves with services that are common in Europe and the US, such as ride-hailing, food delivery, financial services, and some e-commerce. This means that their growth potential is high, compared to America's or Europe's, whose markets are getting more and more saturated, whereas SEA's digital adoption is just starting. Uber sold their SEA business to Grab back in 2018, as what Grab can do better than Uber is being more localized and being popular in these regions. Their brand visibility and reliability are only ever increasing, as Uber is no longer a competitor but a shareholder of Grab, which to me shows optimism in Grab to execute in SEA. Grab is a long-term play; it is offering services that are widely available in Europe and the US and offering them in SEA with no competitors like Uber interfering. Demand for these services will simply increase as GDP gets larger and as cities get gentrified, and Grab has positioned itself to be a long-term winner with a potential high CAGR. Comparing SEA and Europe As I mentioned in my thesis, their growth potential is high operating in SEA compared to the Americas or Europe. I'm going to compare a few metrics to explain why SEA is the next big market that Grab will capitalize on. SEA Europe US Population ~700M ~744M ~347M Forecast 2025 GDP growth ~4.7% ~1.1%(EU) ~1.4% Median Age 30.9 44.7(EU) ~38.5 Smartphone penetration ~80% 89% ~91% Bank account ownership >70% ~96% ~96% Digital wallet usage ~83% <20% (Germany and UK) ~70% SEA is growing at a faster pace than Europe and the US, as the economies in SEA are only getting larger. Despite only being 11 countries, their population is only ~44 million less than Europe and is approximately double that of the US. This means their addressable market is only increasing, which is evident in their user growth (explained in the next segment). A higher GDP growth suggests that prices in both Europe and SEA on a constant currency are getting more similar (prices of Grab/Uber will be similar from point A to B in both locations), as Grab's revenue will increase simply from a growing PPP and income in SEA. Ride-hailing services may also be a luxury to individuals who rely on public transport, as a higher GDP and income will lead to a higher demand for Grab. Uber Estimate Age Demographics (DemandSage) Through surveys, this is the estimated age group demand split for Uber. It shows that younger generations have used Uber's ride-hailing services more than older generations. With a significantly lower median age in SEA, I believe that this can be reflected in Grab's demand as well, as Grab stands to gain a larger consumer base than the US and Europe since the median age is lower. There remains substantial room for growth, especially for their financial segments, as smartphone penetration in SEA continues to rise. Increased access to mobile devices is expected to drive further demand for their digital services, such as ride-hailing and digital payments. These statistics also show that the market is more saturated in Europe and the US, as Uber is already well known alongside many competitors, whereas Grab doesn't have to compete with Uber or fear it even enters the market (sold SEA business to Grab in 2018). A lower bank account ownership and high digital wallet usage are also good metrics. This strays away from using traditional banking or any credit or debit card, but QR-scanned payments. These are popular in SEA countries like Malaysia, using Touch n GO. This is evident with 79% mobile wallet payment usage in SEA. With a lower banking population, using these super-apps is easy for consumers, as simply scanning a QR code and paying through a smartphone may be smoother than carrying a card. Though cards are still the preferred method of paying, high digital adoption leads to more loan and payment growth potential. This differs from major cities like London, where paying with cards is the most widely used option, rather than scanning a QR code at a roadside store. Digital wallet has a wide presence in SEA through these QR code payments, which GrabPay can capitalize on. (Apple Pay counts as a digital wallet payment but is a card payment. SEA countries like Malaysia's digital wallet refer to scanning a QR code and paying through the third-party app.) Grab's ride-hailing segment Grab can dominate the SEA region, as Uber left the region due to Grab being able to offer services that are appropriate for each local region. For example, in Indonesia, their total motorcycles are up to 112M , compared to 8.6M in the US, as Southeast Asia countries also top most of the chart. Certain figures also show that th e 2-wheeler is significantly preferred over the 4-wheeler. Grab's offering motor ride-hailing services is just 1 example of how Uber's glocalization didn't work as it couldn't get up to standard and adapt to SEA's lifestyle, which Grab can. Uber couldn't reflect each country's cultural values, as their glocalization failed. They had cash to invest and burn but couldn't figure out how to retain users. Profit/Loss in Q1 2025 (Grab's Investor Relations) This is seen as Grab continues to burn cash and only recently turned a profit in Q1 2025 earnings. In Malaysia 2021, Grab had 94% market share whilst 32 other registered e-hailing apps (yes, 32 apps) had the other 6%. Grab's market share is now over 95% for ride hailing and 50% for food delivery , still maintaining its dominant position. All these other apps have 1 similarity and 1 difference to Grab; all firms can match local cultures, but the other firms do not have the same amount of cash as Grab to burn. Both factors (culture and cash flow) are important is because Uber had cash to burn but couldn't appeal to local cultures. From this view, it may be seen as hard for Grab to actually retain its customers, because competition can easily come in and compete with Grab. However, I would disagree. These small firms, as margins shrink and user base retention falls, will exit the market due to profitability issues, or simply be limited to their small market share. This is seen in 2024 as Gojek exited Vietnam due to struggling to achieve profitability despite ' aggressive efforts, including promotions and localization strategies '. In the long term, I feel, these smaller firms will simply die out, and the challenge that Grab has is to maintain and increase retention for its existing user base. More examples to back up this claim with Uber leaving SEA and Gojek leaving Vietnam are also Gojek leaving Thailand (did losses in 2019 and 2020) and Foodpanda leaving Thailand. Smaller firms like Maxim also face regulatory issues, told to cease operations but are now able to operate under probation . These businesses face the risk of not even being able to operate at all, which doesn't show the stability like Grab. Most e-hailing apps are simply not as widely available as Grab, as Grab still maintains its market share and has more users and drivers. The idea for these smaller firms is simply to have small and limited operations for specific areas and be profitable for these small firms, or attempt to expand nationwide and not be profitable (examples above with Foodpanda and Gojek). Grab has maintained its market share in ride-hailing, as mentioned above, from 2021 to 2024. It is unlikely their user base will get affected, as Grab runs the majority of the ride-hailing operations in SEA, as Grab's position remains dominant. Grab's users Grab's Platform Transacting Users (Grab's Investor Relations) Grab's user growth shows that their promotions and burning cash to retain their user base have been successful. This is a huge green flag for Grab trying to build a super-app, as they try to integrate into people's everyday lives, especially for a firm operating in business-to-consumer (B2C). I believe that higher smartphone penetration, more exposure to the digital world, and people needing services such as mobility and deliveries, all lead to a higher user base. With so much B2C choice in SEA and Grab being able to maintain growth, while turning a profit in Q1, this means that this growth is just starting. 119 million of a 700 million population is also only 17% penetration on a yearly metric, and only ~6.4% on a monthly metric. This shows that Grab has so much more room to grow, as the integration of technology similar to Europe and the US through technology transfer is just starting, as smartphone penetration and bank account ownership are all still lower than in Europe and the US (table above). For the next few quarters, key metrics such as maintaining users as well as its profit margin are things to look out for, as the adoption of Grab services is trending upwards. Since in a B2C model consumers can just swap to a different service, it is essential for user growth to trend upwards and Grab maintain their dominant position. Grab's financial services segment Grab offers services such as GrabPay, lending, digital banking (GXS Bank) and insurance. Grab has guided for this segment to break even by 2026 , as this is currently trading at a negative adjusted EBITDA. In Q4 2024 earnings , it was noted that ' 90% of the GXS Bank customers in Malaysia came from Grab and the acquisition cost is minimal. The speed at which we've been able to gather deposits and open new accounts we're now up to 4 million new accounts '. This shows that this has huge potential for further growth. Users familiar with Grab mobility or delivery services might try Grab's financial services first if they don't have a bank account, as the reliable app is already at the front of their minds. With their proven consistent user growth in mobility and delivery, this can translate to their financial services user growth. When adjusted EBITDA is no longer negative, it could be a high-growth high-margin business. Financial Services Revenue and Adjusted EBITDA Change YoY (Grab's Investor Relations) In Q1 2025, revenue grew by 36%, with the loan portfolio growing by 56%, all impressive numbers. It is now all about execution, as seen in their adjusted EBITDA%, which has also been falling. 2025 Guidance (Grab's Investor Relations) If next quarter's results beat estimates and align with the updated guidance shown in Q1 of a 47%-53% YoY increase in Group Adjusted EBITDA, Grab should look to comfortably achieve its goal of positive adjusted EBITDA by 2026. A thing to note for future earnings is user growth as well, as user growth needs to continue for the financial segment to grow (using mobility/delivery services leads to trying financial services as well). More users also create a larger network effect, as when more people start using GrabPay to transfer money like PayPal, it will attract more users to Grab. Just to keep in mind, the long-term potential and penetration are massive, as GDP per capita rises fast and bank usage is low. In China, Alipay is a huge success, and Grab is sort of trying to replicate paying through GrabPay. SEA is an emerging market where demand will only increase for fintech and ride-hailing services as the cities get more and more advanced, as the potential addressable market is hundreds of millions of users that still have no exposure to Grab fintech products. Grab and Uber Competition might be high as local businesses adapt to food delivery and such services, but Grab still has the majority market share in SEA. A risk in these scenarios is that the huge US firms to expand into SEA and dominate the market, as Uber has in this scenario. However, Uber has worked with Grab since 2018, so there should be no fear that a huge firm will come in and compete with Grab, as Uber owns ~14% of Grab. Another positive is that Dara Khosrowshahi, Uber's CEO, is on the board of directors for Grab, as Grab is able to have direct help and navigation with Uber's success in the ride-hailing industry. There is still a chance that an established firm might enter the SEA market, but with Uber's failed attempt, there will be huge doubts for any new entrant. With no real competitors in the market for most of SEA, Grab's market share is highly unlikely to be negatively affected in the long term, especially for ride-hailing, maintaining its dominance. Grab acquiring GoTo implications GoTo (or Gojek) is Grab's competitor when it comes to food delivery services, as mentioned above, Grab has ~50%, while GoTo held ~10.5% back in 2023. Grab has been in talks with GoTo to acquire their operations since 2021 , as investors speculate that the acquisition will happen because of Grab's large free cash flow. Sources say that Grab and GoTo have been in advanced talks in Feb this year, also eyeing up a loan back in March. Grab's cash has to go somewhere, and GoTo is one of the top choices to potentially monopolize the ride-hailing and delivery industries in SEA, as their market share in Indonesia could be as high as over 90% . The main component Grab is targeting is GoTo's Indonesia operations, as Grab holds ~70% of ride-hailing market share in SEA, while GoTo holds ~60% in Indonesia and a ' significant portion of food delivery through GoFood.' Indonesia being the largest GDP in all of SEA means that Grab is facing competition in the largest addressable market in SEA. If Grab does acquire GoTo, their dominance in SEA will get larger. GoTo has already exited multiple SEA markets (mentioned above), and the only market Grab has to compete with GoTo is Indonesia (GoTo has a dominant position over Grab). This will heavily benefit Grab if the deal executes, as in the long term, Grab would only compete with smaller local firms as Grab will maintain its user base and continue to capture the majority of the market share (referring back to the argument that Grab has cash to burn and others don't, so Grab can retain more potential customers if GoTo is no longer competition). I would like to see Grab acquire GoTo as soon as possible, as Grab will heavily benefit from this deal in the long term. Risks Grab did not repurchase any shares in Q1 and issued a $1.25B convertible senior note upped to $1.5B, to raise cash shows that Grab is planning something big in my view, such as acquiring GoTo (Gojek), a major player in Indonesia. Mentioned previously of poor margins and high competition, GoTo has been down 85% all time . I believe Grab, in the long term, will benefit from this acquisition if it happens, but execution risk still exists when such a deal/acquisition takes place if it does. They are raising more cash, which could suggest that Grab could overpay for GoTo, despite their market cap near its bottom. However, if Grab executes this at a good price and does not overpay, Grab's investor confidence will increase significantly. Grab and GoTo also have regulatory pressure , as more time may be needed for Grab to complete the deal, which may decrease investor confidence (I believe investors want GoTo under Grab to increase market dominance). Grab has also denied reports of any discussion between the parties, as this may lead to lower long-term optimism if Grab faces competition with Gojek in some SEA countries such as Indonesia. Another risk is that SEA doesn't have fully developed public transport yet, which may lower Grab's demand as trains/trams may be more suitable and cheaper for individuals when they are widely available. Malaysia is the 3rd biggest SEA country in terms of GDP per capita, with a capital (Kuala Lumpur) that has a good public transport system. Now focusing on a specific Malaysian state, Penang, is home to high foreign direct investment (FDI) inflows into the state, including US tech firms such as Lam Research ( LRCX ), Intel ( INTC ), Dell ( DELL ), and many more. Penang has high inflows of FDI as well as being ranked top 3-5 in terms of GDP and GDP per capita among Malaysian states and territories. However, they don't have a developed public transport system. Something to point out on the stats: Kuala Lumpur and Labuan are top 5 but are not Malaysian states. Kuala Lumpur is a territory in Selangor, and Labuan is a territory in Sabah, as Penang ranks high in both metrics in terms of Malaysian states, only really behind Selangor (which has KL capital). In Penang, there are 2 sides, one that is with the mainland (island 1) and one that is not, connected by a bridge (island 2). The capital is on island 2 and away from the mainland. Island 2 has no rail systems throughout the whole city, and only recently started construction within island 2 and is expected to be ready in 2031 . The only existing rail system in Penang is on island 1 in the corner of the state, connecting Penang to the country's capital, Kuala Lumpur. To travel from island 1 to 2, it is only via car (drive yourself or Grab), bus, or ferry. There are also no plans to link one island to the other today via a rail system. This is one example, but the idea is that Grab can penetrate these markets because their public transport systems are so underdeveloped. Individuals may be forced to use Grab during certain times, such as when the bus stops running or a location far away from buses. This is a long-term risk, as when public transport systems get more developed for SEA countries and for smaller cities such as Penang, Grab's demand will fall as users have more choices. Being cheaper with minimal changes to users' daily lives, trains may be the first choice for Grab. If Grab sees a noticeable demand decline due to increased public transport availability throughout SEA, it will show that Grab services are no longer needed as the norm for some individuals, but as a luxury. Another long-term risk is full self-driving (FSD), as Tesla Robotaxi and Alphabet's Waymo are already launching in the US with hundreds of thousands of paid rides weekly. With a lower cost for FSD, regular hailing service will be obsolete if FSD is at full scale. However, a key thing to note for this risk is location. This is SEA, not Europe or the US. Motorcycles are widespread, and roads could be argued to be more dangerous, being flooded by motorcycles and uneven roads. FSD will need to be fully developed and launched in Europe and the US to even start considering dropping it in SEA due to its different road conditions, as this may be a risk whenever FSD is a norm in society in Western countries. With Uber partnering up with Waymo, Uber's participation in Grab could lead to FSD being brought over to SEA, which will be run on Grab's platform anyway, as Grab is already the dominant player with ties to Uber. Valuation Grab's Valuation Metric (Seeking Alpha Valuation Tab) Grab from a P/E GAAP basis could seem overvalued, considering Uber, Lyft, and DoorDash trades at forward P/E of ~32, ~65, and ~112, Grab does look a little bit expensive. Grab is a long-term play, as the potential customers for SEA is so large, and Grab is just starting. Uber, Lyft ( LYFT ), and DoorDash ( DASH ) are already established players operating in saturated markets. Grab is also building a 'super-app', combining fintech, ride hailing, and mobility. Their revenue growth for any segment isn't slowing down, and will only get better as exposure gets larger. Grab also trades with a huge cash flow, more than 30% of their market cap, which, after debt, none of the firms can compare to. With sources estimating that Grab will trade at a P/E of 41 by the end of 2027, Grab is not that expensive considering that their financial segment is still at a negative adjusted EBITDA. Once this is positive and Grab is able to show it can be positive by 2026 (direction is heading that way), Grab's long-term user/revenue trajectory as SEA starts adopting digital services could be double or triple. Conclusion Grab is a long-term play, betting on the idea that Grab can execute in SEA as the next super-app despite high local competition that can undercut their prices. Their revenue and adjusted EBITDA are all trending in the right direction, as they continue to dominate the mobility and delivery markets. It is only time before smaller local players can't keep up with Grab, as they are limited to their small market share and lower revenue. With their next earnings report in a few weeks, we will have more clarity on Grab's trajectory and whether it is still maintaining its forecast of 2026 positive adjusted EBITDA, which the trend should be perfectly in line with as Q1 showed their stable user growth. Grab is already the dominant player in SEA, will maintain its dominant position as offering products that are not widely common and available in SEA, yet creates high-growth potential for Grab, and it is just starting. 1.93K Followers Analyst’s Disclosure: I/we have a beneficial long position in the shares of GRAB either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
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[Industrial](https://seekingalpha.com/stock-ideas/industrial-goods#source=first_level_url%3Aarticle%7Ccontent_type%3Aall%7Csection%3Apage_breadcrumbs) - [Singapore](https://seekingalpha.com/market-outlook/global-investing/analysis/singapore#source=section%3Amain_content%7Csection_asset%3Athemes%7Cbutton%3Asingapore%7Cfirst_level_url%3Aarticle) # Grab: Southeast Asia's SuperApp Destined For Growth Jul 30, 2025, 1:09 AM ET[Grab Holdings Limited (GRAB) Stock](https://seekingalpha.com/symbol/GRAB#source=section%3Amain_content%7Csection_asset%3Ameta%7Cfirst_level_url%3Aarticle%7Csymbol%3AGRAB) ![](https://seekingalpha.com/images/users_profile/061/375/197/big_pic.png?io=w36) [Jia Ming Eow](https://seekingalpha.com/author/jia-ming-eow#source=url_first_level%3Aarticle%7Csection%3Aauthor_brief%3Ajia-ming-eow%7Csection_asset%3Aauthor_brief%7Cauthor_name) 1\.93K Followers Follow - 5 Share - Save - Play(24min) - [Comments (27)](https://seekingalpha.com/article/4805856-grab-seas-superapp-destined-for-growth#scroll_comments) ## Summary - Grab is a diversified super-app in Southeast Asia, combining ride-hailing, food delivery, and digital payments, creating a massive growth opportunity. - With ~\$6 billion in cash, a potentially successful M\&A with GoTo could lead to a larger market share. - Grab’s strong brand, market dominance, and lack of major competitors position it as a long-term winner as Southeast Asia’s digital economy grows. ![Chic young Asian man using mobile app device on smartphone to order a taxi pick up service by the urban road in downtown city street. Speedy and trustworthy service. Carsharing and business on the go themes](https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1323994547/image_1323994547.jpg?io=getty-c-w750) whitebalance.oatt Grab ([GRAB](https://seekingalpha.com/symbol/GRAB#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)) is positioning itself to be the super-app in Southeast Asia (SEA), offering services from ride hailing, food delivery, and digital payments. It combines apps such as Uber, DoorDash, and PayPal, all in one. Their diversified operations and building dominance in SEA create a huge buying opportunity for future potential growth. Grab also has ~\$6 billion in cash flow, with a market cap of ~\$22 billion, trading around 27% of cash, which stands at \$1.44 per share. Grab's growth is not slowing down; being positioned in an unsaturated market, as smaller local firms die down, Grab will capture the majority of the market share. Hence, I'm initiating a 'Strong Buy'. ## Thesis Grab is to many just SEA's Uber ([UBER](https://seekingalpha.com/symbol/UBER#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)), which was also my initial impression, having lived in Malaysia for 14 years. With their diversified operations, Grab is positioning itself in SEA for daily life as everyone is starting to come online. They are positioning themselves with services that are common in Europe and the US, such as ride-hailing, food delivery, financial services, and some e-commerce. This means that their growth potential is high, compared to America's or Europe's, whose markets are getting more and more saturated, whereas SEA's digital adoption is just starting. Uber sold their SEA business to Grab back in 2018, as what Grab can do better than Uber is being more localized and being popular in these regions. Their brand visibility and reliability are only ever increasing, as Uber is no longer a competitor but a shareholder of Grab, which to me shows optimism in Grab to execute in SEA. Grab is a long-term play; it is offering services that are widely available in Europe and the US and offering them in SEA with no competitors like Uber interfering. Demand for these services will simply increase as GDP gets larger and as cities get gentrified, and Grab has positioned itself to be a long-term winner with a potential high CAGR. ## Comparing SEA and Europe As I mentioned in my thesis, their growth potential is high operating in SEA compared to the Americas or Europe. I'm going to compare a few metrics to explain why SEA is the next big market that Grab will capitalize on. \| \| \| \| \| \|---\|---\|---\|---\| \| \| SEA \| Europe \| US \| \| Population \| [~700M](https://www.worldometers.info/world-population/south-eastern-asia-population/#:~:text=Countries%20in%20South-Eastern%20Asia&text=The%20current%20population%20of%20South,the%20latest%20United%20Nations%20data.) \| [~744M](https://www.worldometers.info/world-population/europe-population/) \| [~347M](https://www.worldometers.info/world-population/us-population/) \| \| Forecast 2025 GDP growth \| [~4.7%](https://www.aura.co/news-and-insights/southeast-asia-economic-update-1q-2025) \| [~1.1%(EU)](https://economy-finance.ec.europa.eu/economic-forecast-and-surveys/economic-forecasts/spring-2025-economic-forecast-moderate-growth-amid-global-economic-uncertainty_en) \| [~1.4%](https://www.deloitte.com/us/en/insights/topics/economy/us-economic-forecast/united-states-outlook-analysis.html) \| \| Median Age \| [30\.9](https://www.worldometers.info/world-population/south-eastern-asia-population/#:~:text=Countries%20in%20South-Eastern%20Asia&text=The%20population%20density%20in%20South,miles%29.&text=The%20median%20age%20in%20South-Eastern%20Asia%20is%2030.9%20years.) \| [44\.7(EU)](https://ec.europa.eu/eurostat/web/interactive-publications/demography-2025#:~:text=Median%20age%20of%20the%20population%20in%20the%20EU%3A%2044.7%20years) \| [~38.5](https://www.worldometers.info/world-population/us-population/#:~:text=The%20median%20age%20in%20the%20United%20States%20is%2038.5%20years.) \| \| Smartphone penetration \| [~80%](https://www.researchgate.net/figure/Mobile-phone-penetration-rate-in-Southeast-Asia-from-2010-to-2025-Rysunek-3-Wskaznik_fig1_382211243) \| [89%](https://www.gsma.com/solutions-and-impact/connectivity-for-good/mobile-economy/europe/) \| [~91%](https://www.pewresearch.org/internet/fact-sheet/mobile/#:~:text=The%20vast%20majority%20of%20Americans,smartphone%20ownership%20conducted%20in%202011.) \| \| Bank account ownership \| [\>70%](https://www.temasek.com.sg/content/dam/temasek-corporate/news-and-views/resources/reports/future-of-southeast-asia-digital-financial-services.pdf) \| [~96%](https://www.wsbi-esbg.org/number-of-unbanked-adult-eu-citizens-more-than-halved-in-the-last-four-years/) \| [~96%](https://fdic.gov/news/press-releases/2024/fdic-survey-finds-96-percent-us-households-were-banked-2023) \| \| Digital wallet usage \| [~83%](https://www.visa.com.vn/content/dam/VCOM/regional/ap/singapore/global-elements/documents/visa-cpa-2023-report-ipvmc-final.pdf) \| [\<20% (Germany and UK)](https://uk.finance.yahoo.com/news/europe-digital-payments-report-2025-080200837.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAMbcOuNPb_XDxrdvSY9rRcDlpnwIYyYj58vkRxXrtzBn1IOzDvme0UKVaHeME3q9c6hvhEvqt0S-sfaVRHUQauv5k0Ho8-EAK9esYQIyrcHQOoiBueQsVz3QpwMsQVfxHCjPnEQMvTZ3jT15VeZooRNeXvF4w0rDD0xXVzU_2HDK) \| [~70%](https://www.pymnts.com/mobile-wallets/2025/us-in-store-mobile-wallet-use-sees-4-3percent-increase-since-2022/#:~:text=70%25%20share%20of%20consumers%20in,their%20last%20in-store%20transaction.) \| Click to enlarge SEA is growing at a faster pace than Europe and the US, as the economies in SEA are only getting larger. Despite only being 11 countries, their population is only ~44 million less than Europe and is approximately double that of the US. This means their addressable market is only increasing, which is evident in their user growth (explained in the next segment). A higher GDP growth suggests that prices in both Europe and SEA on a constant currency are getting more similar (prices of Grab/Uber will be similar from point A to B in both locations), as Grab's revenue will increase simply from a growing PPP and income in SEA. Ride-hailing services may also be a luxury to individuals who rely on public transport, as a higher GDP and income will lead to a higher demand for Grab. [![ubers usage by age](https://static.seekingalpha.com/uploads/2025/7/21/61375197-17531235749100158_origin.png?io=w640)](https://static.seekingalpha.com/uploads/2025/7/21/61375197-17531235749100158_origin.png) Uber Estimate Age Demographics (DemandSage) Through surveys, this is the estimated [age group demand split](https://www.demandsage.com/uber-statistics/) for Uber. It shows that younger generations have used Uber's ride-hailing services more than older generations. With a significantly lower median age in SEA, I believe that this can be reflected in Grab's demand as well, as Grab stands to gain a larger consumer base than the US and Europe since the median age is lower. There remains substantial room for growth, especially for their financial segments, as smartphone penetration in SEA continues to rise. Increased access to mobile devices is expected to drive further demand for their digital services, such as ride-hailing and digital payments. These statistics also show that the market is more saturated in Europe and the US, as Uber is already well known alongside many competitors, whereas Grab doesn't have to compete with Uber or fear it even enters the market (sold SEA business to Grab in 2018). A lower bank account ownership and high digital wallet usage are also good metrics. This strays away from using traditional banking or any credit or debit card, but QR-scanned payments. These are popular in SEA countries like Malaysia, using Touch n GO. This is evident with [79% mobile wallet payment](https://fintechnews.sg/102286/mobilepayments/e-wallet-southeast-asia/) usage in SEA. With a lower banking population, using these super-apps is easy for consumers, as simply scanning a QR code and paying through a smartphone may be smoother than carrying a card. Though cards are still the preferred method of paying, high digital adoption leads to more loan and payment growth potential. This differs from major cities like London, where paying with cards is the most widely used option, rather than scanning a QR code at a roadside store. Digital wallet has a wide presence in SEA through these QR code payments, which GrabPay can capitalize on. (Apple Pay counts as a digital wallet payment but is a card payment. SEA countries like Malaysia's digital wallet refer to scanning a QR code and paying through the third-party app.) ## Grab's ride-hailing segment Grab can dominate the SEA region, as Uber left the region due to Grab being able to offer services that are appropriate for each local region. For example, in Indonesia, their [total motorcycles are up to 112M](https://worldpopulationreview.com/country-rankings/motorcycles-by-country), compared to 8.6M in the US, as Southeast Asia countries also top most of the chart. Certain figures also show that th[e 2-wheeler is significantly preferred over the 4-wheeler.](https://vietnamnet.vn/en/vietnam-leads-in-motorbike-usage-amongst-southeast-asian-countries-2297156.html#:~:text=Indonesia%20has%20a%20motor%20vehicle,many%20difficulties%20in%20the%20region.) Grab's offering motor ride-hailing services is just 1 example of how Uber's glocalization didn't work as it couldn't get up to standard and adapt to SEA's lifestyle, which Grab can. Uber couldn't reflect each country's cultural values, as their glocalization failed. They had cash to invest and burn but couldn't figure out how to retain users. [![profit./loss in q1 2025](https://static.seekingalpha.com/uploads/2025/7/21/61375197-17531546937160456_origin.png?io=w640)](https://static.seekingalpha.com/uploads/2025/7/21/61375197-17531546937160456_origin.png) Profit/Loss in Q1 2025 (Grab's Investor Relations) This is seen as Grab continues to burn cash and only recently turned a profit in Q1 2025 earnings. In Malaysia 2021, Grab had [94% market share](https://cfdyhvvf.manus.space/) whilst 32 other registered e-hailing apps (yes, 32 apps) had the other 6%. Grab's market share is now over [95% for ride hailing and 50% for food delivery](https://bytebridge.medium.com/comprehensive-report-on-grab-holdings-daa9e7d3918f), still maintaining its dominant position. All these other apps have 1 similarity and 1 difference to Grab; all firms can match local cultures, but the other firms do not have the same amount of cash as Grab to burn. Both factors (culture and cash flow) are important is because Uber had cash to burn but couldn't appeal to local cultures. From this view, it may be seen as hard for Grab to actually retain its customers, because competition can easily come in and compete with Grab. However, I would disagree. These small firms, as margins shrink and user base retention falls, will exit the market due to profitability issues, or simply be limited to their small market share. This is seen in 2024 as [Gojek exited Vietnam](https://en.vcci.com.vn/ride-hailers-race-for-market-share-after-gojek%E2%80%99s-exit) due to struggling to achieve profitability despite 'aggressive efforts, including promotions and localization strategies'. In the long term, I feel, these smaller firms will simply die out, and the challenge that Grab has is to maintain and increase retention for its existing user base. More examples to back up this claim with Uber leaving SEA and Gojek leaving Vietnam are also [Gojek leaving Thailand (did losses in 2019 and 2020)](https://www.thejakartapost.com/paper/2021/07/07/gojek-exits-thai-market-sells-business-to-airasia.html?u) and [Foodpanda leaving Thailand.](https://www.dbs.com.sg/treasures/aics/templatedata/article/recentdevelopment/data/en/DBSV/052025/GRAB_US_05022025.xml) Smaller firms like Maxim also face regulatory issues, [told to cease operations](https://www.malaymail.com/news/malaysia/2025/05/09/loke-russian-e-hailing-apps-indrive-maxim-ordered-to-cease-operations-over-permit-insurance-violations/176192) but are now able to [operate under probation](https://www.freemalaysiatoday.com/category/nation/2025/07/23/e-hailing-firms-maxim-indrive-granted-3-month-probation). These businesses face the risk of not even being able to operate at all, which doesn't show the stability like Grab. Most e-hailing apps are simply not as widely available as Grab, as Grab still maintains its market share and has more users and drivers. The idea for these smaller firms is simply to have small and limited operations for specific areas and be profitable for these small firms, or attempt to expand nationwide and not be profitable (examples above with Foodpanda and Gojek). Grab has maintained its market share in ride-hailing, as mentioned above, from 2021 to 2024. It is unlikely their user base will get affected, as Grab runs the majority of the ride-hailing operations in SEA, as Grab's position remains dominant. ## Grab's users [![change in platform transacting users](https://static.seekingalpha.com/uploads/2025/7/21/61375197-17531561791450627_origin.png?io=w640)](https://static.seekingalpha.com/uploads/2025/7/21/61375197-17531561791450627_origin.png) Grab's Platform Transacting Users (Grab's Investor Relations) Grab's user growth shows that their promotions and burning cash to retain their user base have been successful. This is a huge green flag for Grab trying to build a super-app, as they try to integrate into people's everyday lives, especially for a firm operating in business-to-consumer (B2C). I believe that higher smartphone penetration, more exposure to the digital world, and people needing services such as mobility and deliveries, all lead to a higher user base. With so much B2C choice in SEA and Grab being able to maintain growth, while turning a profit in Q1, this means that this growth is just starting. 119 million of a 700 million population is also only 17% penetration on a yearly metric, and only ~6.4% on a monthly metric. This shows that Grab has so much more room to grow, as the integration of technology similar to Europe and the US through technology transfer is just starting, as smartphone penetration and bank account ownership are all still lower than in Europe and the US (table above). For the next few quarters, key metrics such as maintaining users as well as its profit margin are things to look out for, as the adoption of Grab services is trending upwards. Since in a B2C model consumers can just swap to a different service, it is essential for user growth to trend upwards and Grab maintain their dominant position. ## Grab's financial services segment Grab offers services such as GrabPay, lending, digital banking (GXS Bank) and insurance. Grab has guided for this segment to [break even by 2026](https://investors.grab.com/news-and-events/news-details/2022/Grab-targets-Group-Adjusted-EBITDA-breakeven-by-H2-2024-as-it-accelerates-path-to-profitability/default.aspx), as this is currently trading at a negative adjusted EBITDA. In [Q4 2024 earnings](https://seekingalpha.com/article/4770981-grab-holdings-limited-grab-q4-2024-earnings-call-transcript#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link), it was noted that '90% of the GXS Bank customers in Malaysia came from Grab and the acquisition cost is minimal. The speed at which we've been able to gather deposits and open new accounts we're now up to 4 million new accounts'. This shows that this has huge potential for further growth. Users familiar with Grab mobility or delivery services might try Grab's financial services first if they don't have a bank account, as the reliable app is already at the front of their minds. With their proven consistent user growth in mobility and delivery, this can translate to their financial services user growth. When adjusted EBITDA is no longer negative, it could be a high-growth high-margin business. [![chagne in fianncial services and loan portoflio yoy](https://static.seekingalpha.com/uploads/2025/7/22/61375197-17532014003555744_origin.png?io=w640)](https://static.seekingalpha.com/uploads/2025/7/22/61375197-17532014003555744_origin.png) Financial Services Revenue and Adjusted EBITDA Change YoY (Grab's Investor Relations) In Q1 2025, revenue grew by 36%, with the loan portfolio growing by 56%, all impressive numbers. It is now all about execution, as seen in their adjusted EBITDA%, which has also been falling. [![2025 guidance](https://static.seekingalpha.com/uploads/2025/7/22/61375197-17532015121522925_origin.png?io=w640)](https://static.seekingalpha.com/uploads/2025/7/22/61375197-17532015121522925_origin.png) 2025 Guidance (Grab's Investor Relations) If next quarter's results beat estimates and align with the updated guidance shown in Q1 of a 47%-53% YoY increase in Group Adjusted EBITDA, Grab should look to comfortably achieve its goal of positive adjusted EBITDA by 2026. A thing to note for future earnings is user growth as well, as user growth needs to continue for the financial segment to grow (using mobility/delivery services leads to trying financial services as well). More users also create a larger network effect, as when more people start using GrabPay to transfer money like PayPal, it will attract more users to Grab. Just to keep in mind, the long-term potential and penetration are massive, as GDP per capita rises fast and bank usage is low. In China, Alipay is a huge success, and Grab is sort of trying to replicate paying through GrabPay. SEA is an emerging market where demand will only increase for fintech and ride-hailing services as the cities get more and more advanced, as the potential addressable market is hundreds of millions of users that still have no exposure to Grab fintech products. ## Grab and Uber Competition might be high as local businesses adapt to food delivery and such services, but Grab still has the majority market share in SEA. A risk in these scenarios is that the huge US firms to expand into SEA and dominate the market, as Uber has in this scenario. However, Uber has worked with Grab since 2018, so there should be no fear that a huge firm will come in and compete with Grab, as Uber owns [~14% of Grab.](https://sg.finance.yahoo.com/news/brief-uber-technologies-reports-14-204114191.html) Another positive is that Dara Khosrowshahi, Uber's CEO, is on the [board of directors for Grab,](https://investors.grab.com/corporate-governance/board-of-directors/) as Grab is able to have direct help and navigation with Uber's success in the ride-hailing industry. There is still a chance that an established firm might enter the SEA market, but with Uber's failed attempt, there will be huge doubts for any new entrant. With no real competitors in the market for most of SEA, Grab's market share is highly unlikely to be negatively affected in the long term, especially for ride-hailing, maintaining its dominance. ## Grab acquiring GoTo implications GoTo (or Gojek) is Grab's competitor when it comes to food delivery services, as mentioned above, Grab has ~50%, while GoTo held ~10.5% back in 2023. Grab has been in talks with GoTo to acquire their operations [since 2021](https://en.wikipedia.org/wiki/Gojek), as investors speculate that the acquisition will happen because of Grab's large free cash flow. Sources say that Grab and GoTo have been in [advanced talks](https://www.reuters.com/markets/deals/grab-goto-advanced-merger-talks-sources-say-2025-02-04/) in Feb this year, also [eyeing up a loan](https://www.reuters.com/markets/deals/grab-seeks-2-billion-loan-possible-goto-takeover-bloomberg-news-reports-2025-03-26/) back in March. Grab's cash has to go somewhere, and GoTo is one of the top choices to potentially monopolize the ride-hailing and delivery industries in SEA, as their market share in Indonesia could be [as high as over 90%](https://www.reuters.com/sustainability/boards-policy-regulation/grab-goto-merger-talks-face-indonesian-regulatory-hurdles-sources-say-2025-06-19/). The main component Grab is targeting is GoTo's Indonesia operations, as Grab holds [~70% of ride-hailing market share](https://miracuves.com/battle-of-the-super-apps-gojek-vs-grab/) in SEA, while GoTo holds ~60% in Indonesia and a 'significant portion of food delivery through GoFood.' Indonesia being the largest GDP in all of SEA means that Grab is facing competition in the largest addressable market in SEA. If Grab does acquire GoTo, their dominance in SEA will get larger. GoTo has already exited multiple SEA markets (mentioned above), and the only market Grab has to compete with GoTo is Indonesia (GoTo has a dominant position over Grab). This will heavily benefit Grab if the deal executes, as in the long term, Grab would only compete with smaller local firms as Grab will maintain its user base and continue to capture the majority of the market share (referring back to the argument that Grab has cash to burn and others don't, so Grab can retain more potential customers if GoTo is no longer competition). I would like to see Grab acquire GoTo as soon as possible, as Grab will heavily benefit from this deal in the long term. ## Risks Grab did not repurchase any shares in Q1 and issued a [\$1.25B convertible senior note](https://seekingalpha.com/news/4456675-grab-holdings-files-to-sell-125b-convertible-senior-notes-due-2030#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) upped to \$1.5B, to raise cash shows that Grab is planning something big in my view, such as acquiring GoTo (Gojek), a major player in Indonesia. Mentioned previously of poor margins and high competition, [GoTo has been down 85% all time](https://www.tradingview.com/symbols/IDX-GOTO/?timeframe=ALL). I believe Grab, in the long term, will benefit from this acquisition if it happens, but execution risk still exists when such a deal/acquisition takes place if it does. They are raising more cash, which could suggest that Grab could overpay for GoTo, despite their market cap near its bottom. However, if Grab executes this at a good price and does not overpay, Grab's investor confidence will increase significantly. Grab and GoTo also have [regulatory pressure](https://eastasiaforum.org/2025/07/03/grabs-acquisition-of-goto-is-a-big-test-for-indonesias-competition-regulators/#:~:text=In%20Brief,consumers%2C%20innovation%20and%20small%20businesses), as more time may be needed for Grab to complete the deal, which may decrease investor confidence (I believe investors want GoTo under Grab to increase market dominance). [Grab has also denied reports](https://www.techinasia.com/news/grab-denies-reports-7b-goto-acquisition) of any discussion between the parties, as this may lead to lower long-term optimism if Grab faces competition with Gojek in some SEA countries such as Indonesia. Another risk is that SEA doesn't have fully developed public transport yet, which may lower Grab's demand as trains/trams may be more suitable and cheaper for individuals when they are widely available. Malaysia is the [3rd biggest SEA](https://www.theglobaleconomy.com/rankings/gdp_per_capita_ppp/South-East-Asia/) country in terms of GDP per capita, with a capital (Kuala Lumpur) that has a good public transport system. Now focusing on a specific Malaysian state, Penang, is home to high foreign direct investment (FDI) inflows into the state, including US tech firms such as Lam Research ([LRCX](https://seekingalpha.com/symbol/LRCX#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)), Intel ([INTC](https://seekingalpha.com/symbol/INTC#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)), Dell ([DELL](https://seekingalpha.com/symbol/DELL#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)), and many more. Penang has high inflows of FDI as well as being ranked [top 3-5 in terms](https://en.wikipedia.org/wiki/List_of_Malaysian_states_by_GDP) of GDP and GDP per capita among Malaysian states and territories. However, they don't have a developed public transport system. Something to point out on the stats: Kuala Lumpur and Labuan are top 5 but are not Malaysian states. Kuala Lumpur is a territory in Selangor, and Labuan is a territory in Sabah, as Penang ranks high in both metrics in terms of Malaysian states, only really behind Selangor (which has KL capital). In Penang, there are 2 sides, one that is with the mainland (island 1) and one that is not, connected by a bridge (island 2). The capital is on island 2 and away from the mainland. Island 2 has no rail systems throughout the whole city, and only recently started construction within island 2 and is [expected to be ready in 2031](https://www.scoop.my/news/264447/mutiara-lrt-project-kicks-off-as-penangs-six-year-construction-timeline-begins/). The only existing rail system in Penang is on island 1 in the corner of the state, connecting Penang to the country's capital, Kuala Lumpur. To travel from island 1 to 2, it is only via car (drive yourself or Grab), bus, or ferry. There are also no plans to link one island to the other today via a rail system. This is one example, but the idea is that Grab can penetrate these markets because their public transport systems are so underdeveloped. Individuals may be forced to use Grab during certain times, such as when the bus stops running or a location far away from buses. This is a long-term risk, as when public transport systems get more developed for SEA countries and for smaller cities such as Penang, Grab's demand will fall as users have more choices. Being cheaper with minimal changes to users' daily lives, trains may be the first choice for Grab. If Grab sees a noticeable demand decline due to increased public transport availability throughout SEA, it will show that Grab services are no longer needed as the norm for some individuals, but as a luxury. Another long-term risk is full self-driving (FSD), as Tesla Robotaxi and Alphabet's Waymo are already launching in the US with hundreds of thousands of paid rides weekly. With a lower cost for FSD, regular hailing service will be obsolete if FSD is at full scale. However, a key thing to note for this risk is location. This is SEA, not Europe or the US. Motorcycles are widespread, and roads could be argued to be more dangerous, being flooded by motorcycles and uneven roads. FSD will need to be fully developed and launched in Europe and the US to even start considering dropping it in SEA due to its different road conditions, as this may be a risk whenever FSD is a norm in society in Western countries. With Uber partnering up with Waymo, Uber's participation in Grab could lead to FSD being brought over to SEA, which will be run on Grab's platform anyway, as Grab is already the dominant player with ties to Uber. ## Valuation [![Grab's Valuation Metric](https://static.seekingalpha.com/uploads/2025/7/22/61375197-17532022056889076_origin.png?io=w640)](https://static.seekingalpha.com/uploads/2025/7/22/61375197-17532022056889076_origin.png) Grab's Valuation Metric (Seeking Alpha Valuation Tab) Grab from a P/E GAAP basis could seem overvalued, considering Uber, Lyft, and DoorDash trades at forward P/E of ~32, ~65, and ~112, Grab does look a little bit expensive. Grab is a long-term play, as the potential customers for SEA is so large, and Grab is just starting. Uber, Lyft ([LYFT](https://seekingalpha.com/symbol/LYFT#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)), and DoorDash ([DASH](https://seekingalpha.com/symbol/DASH#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)) are already established players operating in saturated markets. Grab is also building a 'super-app', combining fintech, ride hailing, and mobility. Their revenue growth for any segment isn't slowing down, and will only get better as exposure gets larger. Grab also trades with a huge cash flow, more than 30% of their market cap, which, after debt, none of the firms can compare to. With sources estimating that Grab will [trade at a P/E of 41](https://finbox.com/DB:A6I/explorer/pe_fwd/) by the end of 2027, Grab is not that expensive considering that their financial segment is still at a negative adjusted EBITDA. Once this is positive and Grab is able to show it can be positive by 2026 (direction is heading that way), Grab's long-term user/revenue trajectory as SEA starts adopting digital services could be double or triple. ## Conclusion Grab is a long-term play, betting on the idea that Grab can execute in SEA as the next super-app despite high local competition that can undercut their prices. Their revenue and adjusted EBITDA are all trending in the right direction, as they continue to dominate the mobility and delivery markets. It is only time before smaller local players can't keep up with Grab, as they are limited to their small market share and lower revenue. With their next earnings report in a few weeks, we will have more clarity on Grab's trajectory and whether it is still maintaining its forecast of 2026 positive adjusted EBITDA, which the trend should be perfectly in line with as Q1 showed their stable user growth. Grab is already the dominant player in SEA, will maintain its dominant position as offering products that are not widely common and available in SEA, yet creates high-growth potential for Grab, and it is just starting. This article was written by ![](https://seekingalpha.com/images/users_profile/061/375/197/big_pic.png?io=w36) [Jia Ming Eow](https://seekingalpha.com/author/jia-ming-eow#source=url_first_level%3Aarticle%7Csection%3Aauthor_root%3Ajia-ming-eow%7Csection_asset%3Aauthor_root%7Cauthor_name) 1\.93K Followers Follow I'm a 20 year old passionate trader managing a 6-figure portfolio trying to and beating the major indexes with my tech-focused/fintech-focused picks. I am focused mostly on growth stocks, particularly stocks that implement AI into their operations, as well as stocks that have a moat over their sector. My personal strategy revolves around finding stocks with high growth potential and undervalued in the market, creating a portfolio with high growth potential rather than FOMO. My niche is to navigate and identify winners in this AI boom that is being underappreciated, as well as to understand the whole AI ecosystem as the AI boom continues.I started researching and analysing stocks since I was 17, aiming to give users a better insight and my ideas, simply motivated by my passion for the stock market and researching equities. Currently also working as an equity advisor and researcher for a family office with over 9 figures in assets, so catch any of my analysis I write up. Also currently 2nd year in University studying Economics. Feel free to reach out to me on Seeking Alpha or LinkedIn for any enquires/questions. Show more Show more Analyst’s Disclosure: I/we have a beneficial long position in the shares of GRAB either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body. - Like - Share - Print - [Comments (27)](https://seekingalpha.com/article/4805856-grab-seas-superapp-destined-for-growth#scroll_comments) ### Recommended For You ![](https://seekingalpha.com/images/users_profile/062/493/212/big_pic.png?io=w36&t=d9ec773001) ### [Microsoft: The Selloff Looks Better Than The Story](https://seekingalpha.com/article/4889520-microsoft-the-selloff-looks-better-than-the-story#source=section%3Arecommended_for_you%7Csection_asset%3Aintegrated%7Cfirst_level_url%3Aarticle%7Cvariation_group%3Avariation_a%7Cline%3A1) Quantryon Capital ![](https://seekingalpha.com/images/users_profile/053/884/093/big_pic.png?io=w36&t=22c691e95f) ### [Micron: The Memory Bottleneck Is Shifting - And Market Hasn't Caught Up](https://seekingalpha.com/article/4889484-micron-the-memory-bottleneck-is-shifting-and-market-hasnt-caught-up#source=section%3Arecommended_for_you%7Csection_asset%3Aintegrated%7Cfirst_level_url%3Aarticle%7Cvariation_group%3Avariation_a%7Cline%3A2) Summit Research ![](https://seekingalpha.com/images/users_profile/048/206/420/big_pic.png?io=w36&t=358374e03d) ### [Palantir: This Could End Badly](https://seekingalpha.com/article/4889491-palantir-this-could-end-badly#source=section%3Arecommended_for_you%7Csection_asset%3Aintegrated%7Cfirst_level_url%3Aarticle%7Cvariation_group%3Avariation_a%7Cline%3A3) Bears of Wall Street ![](https://seekingalpha.com/images/users_profile/016/009/792/big_pic.png?io=w36&t=b042eca515) ### [Intel Foundry Services Is Materializing As The Turnaround Of The Decade](https://seekingalpha.com/article/4889573-intel-foundry-services-is-materializing-as-the-turnaround-of-the-decade#source=section%3Arecommended_for_you%7Csection_asset%3Aintegrated%7Cfirst_level_url%3Aarticle%7Cvariation_group%3Avariation_a%7Cline%3A4) Michael Del Monte ![](https://seekingalpha.com/images/users_profile/058/583/751/big_pic.png?io=w36&t=67a938ba35) ### [Alphabet Stock Defies AI's Gravity](https://seekingalpha.com/article/4889600-alphabet-stock-defies-ai-gravity#source=section%3Arecommended_for_you%7Csection_asset%3Aintegrated%7Cfirst_level_url%3Aarticle%7Cvariation_group%3Avariation_a%7Cline%3A5) Oliver Rodzianko ![](https://seekingalpha.com/images/users_profile/047/644/028/big_pic.png?io=w36&t=7804b247ff) ### [Panic In REITs Is Creating Generational Opportunities](https://seekingalpha.com/article/4888768-panic-in-reits-is-creating-generational-opportunities#source=section%3Arecommended_for_you%7Csection_asset%3Aintegrated%7Cfirst_level_url%3Aarticle%7Cvariation_group%3Avariation_a%7Cline%3A6) Jussi Askola, CFA ![](https://seekingalpha.com/images/users_profile/060/524/232/big_pic.png?io=w36&t=f87fc67222) ### [This Ceasefire Rally Could Collapse Tomorrow: Here's What I'm Buying Anyway](https://seekingalpha.com/article/4889508-ceasefire-rally-could-collapse-tomorrow-heres-what-im-buying-anyway#source=section%3Arecommended_for_you%7Csection_asset%3Aintegrated%7Cfirst_level_url%3Aarticle%7Cvariation_group%3Avariation_a%7Cline%3A7) Deep Value Investing ![](https://seekingalpha.com/images/users_profile/003/949/741/big_pic.png?io=w36&t=322f5116d5) ### [Nebius: The Constant Gamechanger](https://seekingalpha.com/article/4889580-nebius-the-constant-gamechanger#source=section%3Arecommended_for_you%7Csection_asset%3Aintegrated%7Cfirst_level_url%3Aarticle%7Cvariation_group%3Avariation_a%7Cline%3A8) Quad 7 Capital ![](https://seekingalpha.com/images/users_profile/050/662/133/big_pic.png?io=w36&t=7d5d8de612) ### [CoreWeave: Time To Load Up](https://seekingalpha.com/article/4889603-coreweave-time-to-load-up#source=section%3Arecommended_for_you%7Csection_asset%3Aintegrated%7Cfirst_level_url%3Aarticle%7Cvariation_group%3Avariation_a%7Cline%3A9) James Foord ![](https://seekingalpha.com/images/users_profile/047/771/937/big_pic.png?io=w36&t=c43bc96cf9) ### [Blue Owl Capital: The Market Thinks Disaster Is Coming, I Think It Is Wrong](https://seekingalpha.com/article/4889619-blue-owl-capital-the-market-thinks-disaster-is-coming-i-think-it-is-wrong#source=section%3Arecommended_for_you%7Csection_asset%3Aintegrated%7Cfirst_level_url%3Aarticle%7Cvariation_group%3Avariation_a%7Cline%3A10) Samuel Smith ### Comments (27) Newest If you type a company or ETF ticker symbol in capital letters we will automatically link to the symbol page. You can remove the link by deleting the \$ in the comment. Publish ![](https://seekingalpha.com/images/users_profile/061/375/197/small_pic.png?t=ae0a20443a) [Jia Ming Eow](https://seekingalpha.com/author/jia-ming-eow) Article UpdateJul 30, 2025, 11:05 AM [Analyst](https://about.seekingalpha.com/become-an-analyst#source=first_level_url%3Anews%7Csection%3Acomments%7Csection_asset%3Abadge%7Cbutton%3AContributor) Premium [Comments (173)](https://seekingalpha.com/author/jia-ming-eow) \\| \+ Follow Appreciate any feedback and a follow if you like to support my work and analysis! Remember to vote right at the end of the article on whether you found the analysis compelling. Thanks\! Reply Like (6) W [WC2020](https://seekingalpha.com/user/45189386) Sep 15, 2025, 11:44 AM [Comments (2)](https://seekingalpha.com/user/45189386) \\| \+ Follow nicely done Reply Like (1) Liked By Analyst P [PatienceDiscipline](https://seekingalpha.com/user/49137940) Aug 05, 2025, 8:41 PM Premium [Investing Group](https://seekingalpha.com/checkout/mp_1180#source=first_level_url%3Anews%7Csection%3Acomments%7Csection_asset%3Abadge%7Cbutton%3AInvesting%20Group) [Comments (1.81K)](https://seekingalpha.com/user/49137940) \\| \+ Follow SE was a better buy though last year. I feel SE has better immediate prospects. Agree that GRAB's current valuation is a bet on the longer term. Reply Like ![](https://seekingalpha.com/images/users_profile/000/179/106/small_pic.png?t=7e68c2d550) [Sage Capital](https://seekingalpha.com/user/179106) Aug 04, 2025, 4:37 AM Premium [Comments (608)](https://seekingalpha.com/user/179106) \\| \+ Follow GRAB's strong GMV growth should extend into 3Q/4Q, with EBITDA growing via improving Deliveries margin. Optimization of costs & incentives related to the new initiatives should support margins. GrabMart has been seeing rising traction with growth ahead of Food Deliveries and advertising being a key opportunity to unlock. In Fintech, rising loan penetration with drivers/merchants, ramp up in BNPL and new products for SMEs launched by Digital Banks are driving growth acceleration. Bottom Line:Stay long with current PT +25%. Reply Like ![](https://seekingalpha.com/images/users_profile/028/795/505/small_pic.png?t=a6a38b35ef) [No Paychecks...Dividends & Interest](https://seekingalpha.com/user/28795505) Jul 31, 2025, 10:16 AM Premium [Comments (1.11K)](https://seekingalpha.com/user/28795505) \\| \+ Follow Forgive me....new to GRAB research....why is it down over 4% today? Excellent article Reply Like (1) Liked By Analyst U [User 18282742](https://seekingalpha.com/user/18282742) Jul 31, 2025, 10:27 AM Premium [Comments (1.96K)](https://seekingalpha.com/user/18282742) \\| \+ Follow @No Paychecks...Dividends & Interest they reported 2Q last night. Reply Like ![](https://seekingalpha.com/images/users_profile/061/375/197/small_pic.png?t=ae0a20443a) [Jia Ming Eow](https://seekingalpha.com/author/jia-ming-eow) Jul 31, 2025, 11:08 AM [Analyst](https://about.seekingalpha.com/become-an-analyst#source=first_level_url%3Anews%7Csection%3Acomments%7Csection_asset%3Abadge%7Cbutton%3AContributor) Premium [Comments (173)](https://seekingalpha.com/author/jia-ming-eow) \\| \+ Follow @No Paychecks...Dividends & Interest a lot of reasons IMO. The AI growth isn’t slowing down with META and MSFT earnings so markets might just move out of Grab as the returns may be perceived as lower in the short term. A more micro reason could be guidance not raised with their amazing metrics so speculations on a poorer 2H(imo firms raise guidance in q3 as they are more confident at that point, so not raising guidance in q2 isn’t that crazy). Could be overreaction as well, volumes for Grab isn’t that large as liquidity is a lot lower, leading to larger volatility. Another reason could be fcf growth, I flicked through the results yesterday(I’m on holiday rn) and the FCF growth wasn’t that impressive comparing to previous years. Another reason was one of the metrics of growth(forgot which sorry) was lower YoY compared to Q1. Another reason could also be what they are doing with FCF, which was quite a vague answer. I think investors wants GoTo so limited progress on that could also lead to negative sentiment. IMO very good quarter by Grab and overblown, as I’m quite bullish. But my genuine belief is that investors are just allocating capital back to AI as Grab didn’t raise guidance so no idea whats next whereas AI is clearly trending upwards, hence safer bet on AI as the Grab thesis is more long term. Hope this helps\! Reply Like (1) ![](https://seekingalpha.com/images/users_profile/028/795/505/small_pic.png?t=a6a38b35ef) [No Paychecks...Dividends & Interest](https://seekingalpha.com/user/28795505) Jul 31, 2025, 1:38 PM Premium [Comments (1.11K)](https://seekingalpha.com/user/28795505) \\| \+ Follow [@Jia Ming Eow](https://seekingalpha.com/author/jia-ming-eow#source=section%3Acomment%7Csection_asset%3Acomment%7Cfirst_level_url%3Aarticle%7Ccontent_id%3A4805856%7Ccomment_id%3A100773331) Thank you so much for the thorough answer....Very much appreciated.....Enjoy you holiday.... Reply Like (1) Liked By Analyst C [CuPoTKa](https://seekingalpha.com/user/50457651) Jul 31, 2025, 1:24 AM [Investing Group](https://seekingalpha.com/checkout/mp_1365#source=first_level_url%3Anews%7Csection%3Acomments%7Csection_asset%3Abadge%7Cbutton%3AInvesting%20Group) [Comments (1.17K)](https://seekingalpha.com/user/50457651) \\| \+ Follow Grab compared to Uber, Lyft and DoorDash is moving towards the superapp. Superapp for me is the one bridilging between the consumption and the customer finance. Like MELI. In the mobility sector only Grab is doing that. Reply Like (1) Liked By Analyst ![](https://seekingalpha.com/images/users_profile/061/375/197/small_pic.png?t=ae0a20443a) [Jia Ming Eow](https://seekingalpha.com/author/jia-ming-eow) Jul 31, 2025, 3:41 AM [Analyst](https://about.seekingalpha.com/become-an-analyst#source=first_level_url%3Anews%7Csection%3Acomments%7Csection_asset%3Abadge%7Cbutton%3AContributor) Premium [Comments (173)](https://seekingalpha.com/author/jia-ming-eow) \\| \+ Follow [@CuPoTKa](https://seekingalpha.com/user/50457651#source=section%3Acomment%7Csection_asset%3Acomment%7Cfirst_level_url%3Aarticle%7Ccontent_id%3A4805856%7Ccomment_id%3A100769028) IMO Uber Lyft and Doordash can’t build a superapp as it will just fail. The fintech neobank and traditional bank competition is so high in the markets they operate in. Grab on the other hand is taking full advantage of underdevelopment of SEA which allows Grab to do it. All about execution with everything trending the right way, as they are ‘destined for growth’. Good luck and thanks\! Reply Like (2) C [CuPoTKa](https://seekingalpha.com/user/50457651) Jul 31, 2025, 3:44 AM [Investing Group](https://seekingalpha.com/checkout/mp_1365#source=first_level_url%3Anews%7Csection%3Acomments%7Csection_asset%3Abadge%7Cbutton%3AInvesting%20Group) [Comments (1.17K)](https://seekingalpha.com/user/50457651) \\| \+ Follow [@Jia Ming Eow](https://seekingalpha.com/author/jia-ming-eow#source=section%3Acomment%7Csection_asset%3Acomment%7Cfirst_level_url%3Aarticle%7Ccontent_id%3A4805856%7Ccomment_id%3A100769032) agree Reply Like (1) Liked By Analyst g [golfjohh](https://seekingalpha.com/user/23768393) Jul 30, 2025, 11:22 PM Premium [Comments (50)](https://seekingalpha.com/user/23768393) \\| \+ Follow Your Insight into Grab's Business Model in SEA, was well Researched, and Very Informative\! Since moving to Thailand 2 years ago, and having visited other SEA Countries, Grab's Presence is Everywhere! I have used Grab's Food and Mobility Services around 50 to 70 times (guestimate) and have Always had a Positive Experience\! Thanks for the taking the time to share your thoughts\! Reply Like (7) Liked By Analyst ![](https://seekingalpha.com/images/users_profile/061/375/197/small_pic.png?t=ae0a20443a) [Jia Ming Eow](https://seekingalpha.com/author/jia-ming-eow) Jul 31, 2025, 3:36 AM [Analyst](https://about.seekingalpha.com/become-an-analyst#source=first_level_url%3Anews%7Csection%3Acomments%7Csection_asset%3Abadge%7Cbutton%3AContributor) Premium [Comments (173)](https://seekingalpha.com/author/jia-ming-eow) \\| \+ Follow [@golfjohh](https://seekingalpha.com/user/23768393#source=section%3Acomment%7Csection_asset%3Acomment%7Cfirst_level_url%3Aarticle%7Ccontent_id%3A4805856%7Ccomment_id%3A100769022) thanks a lot! They have very strong presence and I have a feeling their brand recognition isn’t that widely known by investors. Anyone whos been in SEA knows how Grab is present everywhere and is clearly building a moat.(my parents still says are we taking grab when we take an Uber in europe, they reside in SEA lol) Reply Like (1) N [Natturner1966](https://seekingalpha.com/user/53063108) Jul 30, 2025, 8:02 PM Premium [Comments (23.38K)](https://seekingalpha.com/user/53063108) \\| \+ Follow Kind of odd that GRAB reported earnings today and nothing from SA. [finance.yahoo.com/...](https://finance.yahoo.com/news/grab-holdings-beats-quarterly-revenue-230012060.html "https://finance.yahoo.com/news/grab-holdings-beats-quarterly-revenue-230012060.html") “Grab Holdings beats quarterly revenue estimates“ Reuters) -Grab Holdings beat Wall Street expectations for second-quarter revenue on Wednesday, as consumers boosted spending on its ride-hailing and food delivery platform despite global economic uncertainty. The Singapore-based company reported revenue of \$819 million, above analysts' expectations of \$811.3 million, according to LSEG data Grab's push to turn its platform into a superapp, integrating ride-hailing, food and grocery delivery, and other digital services, has drawn a growing number of users willing to pay for its subscription plans. While ongoing U.S. trade negotiations have cast a cloud over global economic stability, leading to concerns about tariffs and elevated costs in Southeast Asia, the Singaporean economy has remained resilient. It grew 4.3% in the second quarter, avoiding a technical recession. Grab posted a profit of \$20 million for the quarter, compared with a \$68 million loss in the same period a year earlier. Reply Like (7) Liked By Analyst ![](https://seekingalpha.com/images/users_profile/061/375/197/small_pic.png?t=ae0a20443a) [Jia Ming Eow](https://seekingalpha.com/author/jia-ming-eow) Jul 30, 2025, 8:28 PM [Analyst](https://about.seekingalpha.com/become-an-analyst#source=first_level_url%3Anews%7Csection%3Acomments%7Csection_asset%3Abadge%7Cbutton%3AContributor) Premium [Comments (173)](https://seekingalpha.com/author/jia-ming-eow) \\| \+ Follow [@Natturner1966](https://seekingalpha.com/user/53063108#source=section%3Acomment%7Csection_asset%3Acomment%7Cfirst_level_url%3Aarticle%7Ccontent_id%3A4805856%7Ccomment_id%3A100767710) Most news websites have the results out such as tradingview, which makes me think that SA hasn't seen it because the earnings are at an odd time compared to US stocks in general. The press release has nearly been out for 1H30M and earnings call is ongoing right now. This quarter has maintained my bullish stance on Grab though, with most metrics trending up. No idea how market will see it though so next opening will be interesting\! Reply Like (3) N [Natturner1966](https://seekingalpha.com/user/53063108) Jul 30, 2025, 8:33 PM Premium [Comments (23.38K)](https://seekingalpha.com/user/53063108) \\| \+ Follow [@Jia Ming Eow](https://seekingalpha.com/author/jia-ming-eow#source=section%3Acomment%7Csection_asset%3Acomment%7Cfirst_level_url%3Aarticle%7Ccontent_id%3A4805856%7Ccomment_id%3A100767728) Yes. I was quite pleased with the results. I listened to a bit of the call. I came away enthusiastic about their future. Reply Like (3) Liked By Analyst ![](https://seekingalpha.com/images/users_profile/000/765/344/small_pic.png?t=5d07726126) [Who Dat?](https://seekingalpha.com/user/765344) Jul 30, 2025, 3:01 PM Premium [Investing Group](https://seekingalpha.com/checkout/mp_1087#source=first_level_url%3Anews%7Csection%3Acomments%7Csection_asset%3Abadge%7Cbutton%3AInvesting%20Group) [Comments (17.33K)](https://seekingalpha.com/user/765344) \\| \+ Follow Having visited multiple Asian countries this past Dec, it opened my eyes how wildly popular Grab is. I’ve been long ever since I came back to the states. Reply Like (4) Liked By Analyst ![](https://seekingalpha.com/images/users_profile/061/375/197/small_pic.png?t=ae0a20443a) [Jia Ming Eow](https://seekingalpha.com/author/jia-ming-eow) Jul 30, 2025, 8:24 PM [Analyst](https://about.seekingalpha.com/become-an-analyst#source=first_level_url%3Anews%7Csection%3Acomments%7Csection_asset%3Abadge%7Cbutton%3AContributor) Premium [Comments (173)](https://seekingalpha.com/author/jia-ming-eow) \\| \+ Follow [@Who Dat?](https://seekingalpha.com/user/765344#source=section%3Acomment%7Csection_asset%3Acomment%7Cfirst_level_url%3Aarticle%7Ccontent_id%3A4805856%7Ccomment_id%3A100767691) Missing the retail hype that many other stocks are experiencing rn imo. Once institutional and retail money start flowing in and momentum builds I believe Grab can run so much higher. Think awareness of Grab is just low, but anyone who has used Grab's services definitely knows how popular it is, hence many are convicted in the bullish thesis. Reply Like ![](https://seekingalpha.com/images/users_profile/016/436/262/small_pic.png?t=805d6d6742) [laruetou](https://seekingalpha.com/user/16436262) Sep 12, 2025, 1:09 AM [Investing Group](https://seekingalpha.com/checkout/mp_1076#source=first_level_url%3Anews%7Csection%3Acomments%7Csection_asset%3Abadge%7Cbutton%3AInvesting%20Group) [Comments (89)](https://seekingalpha.com/user/16436262) \\| \+ Follow [@Who Dat?](https://seekingalpha.com/user/765344#source=section%3Acomment%7Csection_asset%3Acomment%7Cfirst_level_url%3Aarticle%7Ccontent_id%3A4805856%7Ccomment_id%3A101071981) Who dat say "who dat?" when I say "who dat?" Reply Like E [EatMyShortzSqueeze](https://seekingalpha.com/user/57544130) Jul 30, 2025, 11:32 AM Premium [Comments (18)](https://seekingalpha.com/user/57544130) \\| \+ Follow Great article. \$7 is an easy hurdle for Grab. Reply Like (3) Liked By Analyst B [Brett Michael Michaels](https://seekingalpha.com/user/59994107) Jul 30, 2025, 10:27 AM Premium [Comments (297)](https://seekingalpha.com/user/59994107) \\| \+ Follow Excellent article! I began a position in GRAB late last year. I've been hesitant to add much for the same reasons UBER dipped out of SEA -- I just don't know the market well. I've also heard governments in the region aren't huge fans of these types of companies, so I fear a regulatory smack down or profit grab. On the other hand, I really like the business model of GRAB and the direction they are heading. Reply Like (1) Liked By Analyst ![](https://seekingalpha.com/images/users_profile/061/375/197/small_pic.png?t=ae0a20443a) [Jia Ming Eow](https://seekingalpha.com/author/jia-ming-eow) Jul 30, 2025, 11:14 AM [Analyst](https://about.seekingalpha.com/become-an-analyst#source=first_level_url%3Anews%7Csection%3Acomments%7Csection_asset%3Abadge%7Cbutton%3AContributor) Premium [Comments (173)](https://seekingalpha.com/author/jia-ming-eow) \\| \+ Follow [@Brett Michael Michaels](https://seekingalpha.com/user/59994107#source=section%3Acomment%7Csection_asset%3Acomment%7Cfirst_level_url%3Aarticle%7Ccontent_id%3A4805856%7Ccomment_id%3A100762824) Thanks! Regulatory is a big risk for Grab in the long term, but the potential growth and % high cash is too attractive to pass on IMO Reply Like (1) ![](https://seekingalpha.com/images/users_profile/000/765/344/small_pic.png?t=5d07726126) [Who Dat?](https://seekingalpha.com/user/765344) Jul 30, 2025, 3:02 PM Premium [Investing Group](https://seekingalpha.com/checkout/mp_1087#source=first_level_url%3Anews%7Csection%3Acomments%7Csection_asset%3Abadge%7Cbutton%3AInvesting%20Group) [Comments (17.33K)](https://seekingalpha.com/user/765344) \\| \+ Follow [@Brett Michael Michaels](https://seekingalpha.com/user/59994107#source=section%3Acomment%7Csection_asset%3Acomment%7Cfirst_level_url%3Aarticle%7Ccontent_id%3A4805856%7Ccomment_id%3A100764918) One of my neighbors, who is a teacher, recently asked me about investing. I don’t usually give stock advise but since she asked, I told her to buy GRAB as much as she can in her son’s 529College fund. It was the only stock I could think of that is “affordable” for a teacher to buy in large qty. I also came close to telling her to buy FUBO but that would be too speculative Reply Like z [zilant](https://seekingalpha.com/user/62822026) Jul 30, 2025, 5:35 AM [Comments (1)](https://seekingalpha.com/user/62822026) \\| \+ Follow Nice analysis! I’ve been loading up on Grab since April. Really excited for the Q2 earnings call, which is just about a day away. Reply Like (5) Liked By Analyst ![](https://seekingalpha.com/images/users_profile/061/375/197/small_pic.png?t=ae0a20443a) [Jia Ming Eow](https://seekingalpha.com/author/jia-ming-eow) Jul 30, 2025, 11:12 AM [Analyst](https://about.seekingalpha.com/become-an-analyst#source=first_level_url%3Anews%7Csection%3Acomments%7Csection_asset%3Abadge%7Cbutton%3AContributor) Premium [Comments (173)](https://seekingalpha.com/author/jia-ming-eow) \\| \+ Follow [@zilant](https://seekingalpha.com/user/62822026#source=section%3Acomment%7Csection_asset%3Acomment%7Cfirst_level_url%3Aarticle%7Ccontent_id%3A4805856%7Ccomment_id%3A100762810) thanks! loaded up as well going into this earnings, 9h from now, hopefully bullish news\! Reply Like (1) ![](https://seekingalpha.com/images/users_profile/049/079/457/small_pic.png?t=2a8517deee) [Manfred M.](https://seekingalpha.com/user/49079457) Jul 30, 2025, 2:26 AM [Comments (301)](https://seekingalpha.com/user/49079457) \\| \+ Follow Grab is coming under pressure by locals everywhere for not paying enough. Trouble ahead Reply Like (4) Liked By Analyst ![](https://seekingalpha.com/images/users_profile/061/375/197/small_pic.png?t=ae0a20443a) [Jia Ming Eow](https://seekingalpha.com/author/jia-ming-eow) Jul 30, 2025, 11:09 AM [Analyst](https://about.seekingalpha.com/become-an-analyst#source=first_level_url%3Anews%7Csection%3Acomments%7Csection_asset%3Abadge%7Cbutton%3AContributor) Premium [Comments (173)](https://seekingalpha.com/author/jia-ming-eow) \\| \+ Follow [@Manfred M.](https://seekingalpha.com/user/49079457#source=section%3Acomment%7Csection_asset%3Acomment%7Cfirst_level_url%3Aarticle%7Ccontent_id%3A4805856%7Ccomment_id%3A100762793) could be a long term regulation problem that develops, but IMO not a big risk Reply Like (3) Add A Comment Disagree with this article? [Submit your own](https://about.seekingalpha.com/become-an-analyst). To report a factual error in this article, click here . Your feedback matters to us\! ### About GRAB Stock \| Symbol \| Last Price \| % Chg \| \|---\|---\|---\| \| [GRAB](https://seekingalpha.com/symbol/GRAB#source=first_level_url%3Aarticle%7Csection%3Aright_rail%7Csection_asset%3Aabout%7Cline%3A1%7Csymbol%3AGRAB) Grab Holdings Limited \| 3\.68 \| 1\.38% \| \| Post \| 3\.70 \| 0\.54% \| - 1D - 5D - 1M - 6M - 1Y - 5Y - 10Y ###### Chart Combination chart with 2 data series. View as data table, Chart The chart has 1 X axis displaying Time. Data ranges from 2025-04-09 00:00:00 to 2026-04-09 00:00:00. The chart has 1 Y axis displaying values. Data ranges from 3.53 to 6.45. Created with Highcharts 12.5.0 May '25 Aug '25 Nov '25 Feb '26 2 4 6 8 End of interactive chart. Market Cap \$14.88B PE (FWD) 38\.75 Yield \- Rev Growth (YoY) 20\.49% Short Interest 6\.07% Prev. Close \$3.63 [grab Summary](https://seekingalpha.com/symbol/GRAB/virtual_analyst_report) Compare to Peers ### More on GRAB ### [WeRide and Grab launch public robotaxi operations in Singapore](https://seekingalpha.com/news/4571201-weride-and-grab-launch-public-robotaxi-operations-in-singapore#source=section_asset%3Amore-on%7Csection%3Aright_rail%7Cfirst_level_url%3Aarticle%7Cline%3A1%7Cpos%3Aundefined) ![](https://seekingalpha.com/images/users_profile/050/054/746/big_pic.png?io=w36) ### [Grab Holdings: Local Network Effect Advantage And Dominant Market Position](https://seekingalpha.com/article/4886271-grab-holdings-local-network-effect-advantage-dominant-market-position#source=section_asset%3Amore-on%7Csection%3Aright_rail%7Cfirst_level_url%3Aarticle%7Cline%3A2%7Cpos%3Aundefined) [Fund Letter Stock Ideas](https://seekingalpha.com/author/fund-letter-stock-ideas#source=section_asset%3Amore-on%7Csection%3Aright_rail%7Cfirst_level_url%3Aarticle%7Cline%3A2%7Cpos%3Aundefined) ### [Analysts applaud Grab's deal to enter Taiwan via the Foodpanda deal](https://seekingalpha.com/news/4567372-analysts-applaud-grabs-deal-to-enter-taiwan-via-the-foodpanda-deal#source=section_asset%3Amore-on%7Csection%3Aright_rail%7Cfirst_level_url%3Aarticle%7Cline%3A3%7Cpos%3Aundefined) ### [Grab to buy Delivery Hero’s foodpanda Taiwan business for \$600M](https://seekingalpha.com/news/4567245-grab-to-buy-delivery-heros-foodpanda-taiwan-business-for-600m#source=section_asset%3Amore-on%7Csection%3Aright_rail%7Cfirst_level_url%3Aarticle%7Cline%3A4%7Cpos%3Aundefined) ### Related Stocks \| Symbol \| Last Price \| % Chg \| \|---\|---\|---\| \| [GRAB](https://seekingalpha.com/symbol/GRAB#source=first_level_url%3Anews%7Csection%3Aright_rail%7Csection_asset%3Aabout%7Cline%3A1%7Csymbol%3Agrab) GRAB \| 3\.68 \| 1\.38% \| \| Post: \| 3\.70 \| 0\.54% \| - 1D - 5D - 1M - 6M - 1Y - 5Y - 10Y ###### Chart Chart with 160 data points. View as data table, Chart The chart has 1 X axis displaying Time. Data ranges from 2026-04-06 09:30:00 to 2026-04-09 16:00:00. The chart has 1 Y axis displaying values. Data ranges from 3.5 to 3.775. Created with Highcharts 12.5.0 Apr 6 Apr 7 Apr 8 Apr 9 3\.50 3\.75 4\.00 End of interactive chart. 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Readable Markdown	![Chic young Asian man using mobile app device on smartphone to order a taxi pick up service by the urban road in downtown city street. Speedy and trustworthy service. Carsharing and business on the go themes](https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1323994547/image_1323994547.jpg?io=getty-c-w750) whitebalance.oatt Grab ([GRAB](https://seekingalpha.com/symbol/GRAB#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)) is positioning itself to be the super-app in Southeast Asia (SEA), offering services from ride hailing, food delivery, and digital payments. It combines apps such as Uber, DoorDash, and PayPal, all in one. Their diversified operations and building dominance in SEA create a huge buying opportunity for future potential growth. Grab also has ~\$6 billion in cash flow, with a market cap of ~\$22 billion, trading around 27% of cash, which stands at \$1.44 per share. Grab's growth is not slowing down; being positioned in an unsaturated market, as smaller local firms die down, Grab will capture the majority of the market share. Hence, I'm initiating a 'Strong Buy'. ## Thesis Grab is to many just SEA's Uber ([UBER](https://seekingalpha.com/symbol/UBER#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)), which was also my initial impression, having lived in Malaysia for 14 years. With their diversified operations, Grab is positioning itself in SEA for daily life as everyone is starting to come online. They are positioning themselves with services that are common in Europe and the US, such as ride-hailing, food delivery, financial services, and some e-commerce. This means that their growth potential is high, compared to America's or Europe's, whose markets are getting more and more saturated, whereas SEA's digital adoption is just starting. Uber sold their SEA business to Grab back in 2018, as what Grab can do better than Uber is being more localized and being popular in these regions. Their brand visibility and reliability are only ever increasing, as Uber is no longer a competitor but a shareholder of Grab, which to me shows optimism in Grab to execute in SEA. Grab is a long-term play; it is offering services that are widely available in Europe and the US and offering them in SEA with no competitors like Uber interfering. Demand for these services will simply increase as GDP gets larger and as cities get gentrified, and Grab has positioned itself to be a long-term winner with a potential high CAGR. ## Comparing SEA and Europe As I mentioned in my thesis, their growth potential is high operating in SEA compared to the Americas or Europe. I'm going to compare a few metrics to explain why SEA is the next big market that Grab will capitalize on. SEA Europe US Population [~700M](https://www.worldometers.info/world-population/south-eastern-asia-population/#:~:text=Countries%20in%20South-Eastern%20Asia&text=The%20current%20population%20of%20South,the%20latest%20United%20Nations%20data.) [~744M](https://www.worldometers.info/world-population/europe-population/) [~347M](https://www.worldometers.info/world-population/us-population/) Forecast 2025 GDP growth [~4.7%](https://www.aura.co/news-and-insights/southeast-asia-economic-update-1q-2025) [~1.1%(EU)](https://economy-finance.ec.europa.eu/economic-forecast-and-surveys/economic-forecasts/spring-2025-economic-forecast-moderate-growth-amid-global-economic-uncertainty_en) [~1.4%](https://www.deloitte.com/us/en/insights/topics/economy/us-economic-forecast/united-states-outlook-analysis.html) Median Age [30\.9](https://www.worldometers.info/world-population/south-eastern-asia-population/#:~:text=Countries%20in%20South-Eastern%20Asia&text=The%20population%20density%20in%20South,miles%29.&text=The%20median%20age%20in%20South-Eastern%20Asia%20is%2030.9%20years.) [44\.7(EU)](https://ec.europa.eu/eurostat/web/interactive-publications/demography-2025#:~:text=Median%20age%20of%20the%20population%20in%20the%20EU%3A%2044.7%20years) [~38.5](https://www.worldometers.info/world-population/us-population/#:~:text=The%20median%20age%20in%20the%20United%20States%20is%2038.5%20years.) Smartphone penetration [~80%](https://www.researchgate.net/figure/Mobile-phone-penetration-rate-in-Southeast-Asia-from-2010-to-2025-Rysunek-3-Wskaznik_fig1_382211243) [89%](https://www.gsma.com/solutions-and-impact/connectivity-for-good/mobile-economy/europe/) [~91%](https://www.pewresearch.org/internet/fact-sheet/mobile/#:~:text=The%20vast%20majority%20of%20Americans,smartphone%20ownership%20conducted%20in%202011.) Bank account ownership [\>70%](https://www.temasek.com.sg/content/dam/temasek-corporate/news-and-views/resources/reports/future-of-southeast-asia-digital-financial-services.pdf) [~96%](https://www.wsbi-esbg.org/number-of-unbanked-adult-eu-citizens-more-than-halved-in-the-last-four-years/) [~96%](https://fdic.gov/news/press-releases/2024/fdic-survey-finds-96-percent-us-households-were-banked-2023) Digital wallet usage [~83%](https://www.visa.com.vn/content/dam/VCOM/regional/ap/singapore/global-elements/documents/visa-cpa-2023-report-ipvmc-final.pdf) [\<20% (Germany and UK)](https://uk.finance.yahoo.com/news/europe-digital-payments-report-2025-080200837.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAMbcOuNPb_XDxrdvSY9rRcDlpnwIYyYj58vkRxXrtzBn1IOzDvme0UKVaHeME3q9c6hvhEvqt0S-sfaVRHUQauv5k0Ho8-EAK9esYQIyrcHQOoiBueQsVz3QpwMsQVfxHCjPnEQMvTZ3jT15VeZooRNeXvF4w0rDD0xXVzU_2HDK) [~70%](https://www.pymnts.com/mobile-wallets/2025/us-in-store-mobile-wallet-use-sees-4-3percent-increase-since-2022/#:~:text=70%25%20share%20of%20consumers%20in,their%20last%20in-store%20transaction.) SEA is growing at a faster pace than Europe and the US, as the economies in SEA are only getting larger. Despite only being 11 countries, their population is only ~44 million less than Europe and is approximately double that of the US. This means their addressable market is only increasing, which is evident in their user growth (explained in the next segment). A higher GDP growth suggests that prices in both Europe and SEA on a constant currency are getting more similar (prices of Grab/Uber will be similar from point A to B in both locations), as Grab's revenue will increase simply from a growing PPP and income in SEA. Ride-hailing services may also be a luxury to individuals who rely on public transport, as a higher GDP and income will lead to a higher demand for Grab. [![ubers usage by age](https://static.seekingalpha.com/uploads/2025/7/21/61375197-17531235749100158_origin.png?io=w640)](https://static.seekingalpha.com/uploads/2025/7/21/61375197-17531235749100158_origin.png) Uber Estimate Age Demographics (DemandSage) Through surveys, this is the estimated [age group demand split](https://www.demandsage.com/uber-statistics/) for Uber. It shows that younger generations have used Uber's ride-hailing services more than older generations. With a significantly lower median age in SEA, I believe that this can be reflected in Grab's demand as well, as Grab stands to gain a larger consumer base than the US and Europe since the median age is lower. There remains substantial room for growth, especially for their financial segments, as smartphone penetration in SEA continues to rise. Increased access to mobile devices is expected to drive further demand for their digital services, such as ride-hailing and digital payments. These statistics also show that the market is more saturated in Europe and the US, as Uber is already well known alongside many competitors, whereas Grab doesn't have to compete with Uber or fear it even enters the market (sold SEA business to Grab in 2018). A lower bank account ownership and high digital wallet usage are also good metrics. This strays away from using traditional banking or any credit or debit card, but QR-scanned payments. These are popular in SEA countries like Malaysia, using Touch n GO. This is evident with [79% mobile wallet payment](https://fintechnews.sg/102286/mobilepayments/e-wallet-southeast-asia/) usage in SEA. With a lower banking population, using these super-apps is easy for consumers, as simply scanning a QR code and paying through a smartphone may be smoother than carrying a card. Though cards are still the preferred method of paying, high digital adoption leads to more loan and payment growth potential. This differs from major cities like London, where paying with cards is the most widely used option, rather than scanning a QR code at a roadside store. Digital wallet has a wide presence in SEA through these QR code payments, which GrabPay can capitalize on. (Apple Pay counts as a digital wallet payment but is a card payment. SEA countries like Malaysia's digital wallet refer to scanning a QR code and paying through the third-party app.) ## Grab's ride-hailing segment Grab can dominate the SEA region, as Uber left the region due to Grab being able to offer services that are appropriate for each local region. For example, in Indonesia, their [total motorcycles are up to 112M](https://worldpopulationreview.com/country-rankings/motorcycles-by-country), compared to 8.6M in the US, as Southeast Asia countries also top most of the chart. Certain figures also show that th[e 2-wheeler is significantly preferred over the 4-wheeler.](https://vietnamnet.vn/en/vietnam-leads-in-motorbike-usage-amongst-southeast-asian-countries-2297156.html#:~:text=Indonesia%20has%20a%20motor%20vehicle,many%20difficulties%20in%20the%20region.) Grab's offering motor ride-hailing services is just 1 example of how Uber's glocalization didn't work as it couldn't get up to standard and adapt to SEA's lifestyle, which Grab can. Uber couldn't reflect each country's cultural values, as their glocalization failed. They had cash to invest and burn but couldn't figure out how to retain users. [![profit./loss in q1 2025](https://static.seekingalpha.com/uploads/2025/7/21/61375197-17531546937160456_origin.png?io=w640)](https://static.seekingalpha.com/uploads/2025/7/21/61375197-17531546937160456_origin.png) Profit/Loss in Q1 2025 (Grab's Investor Relations) This is seen as Grab continues to burn cash and only recently turned a profit in Q1 2025 earnings. In Malaysia 2021, Grab had [94% market share](https://cfdyhvvf.manus.space/) whilst 32 other registered e-hailing apps (yes, 32 apps) had the other 6%. Grab's market share is now over [95% for ride hailing and 50% for food delivery](https://bytebridge.medium.com/comprehensive-report-on-grab-holdings-daa9e7d3918f), still maintaining its dominant position. All these other apps have 1 similarity and 1 difference to Grab; all firms can match local cultures, but the other firms do not have the same amount of cash as Grab to burn. Both factors (culture and cash flow) are important is because Uber had cash to burn but couldn't appeal to local cultures. From this view, it may be seen as hard for Grab to actually retain its customers, because competition can easily come in and compete with Grab. However, I would disagree. These small firms, as margins shrink and user base retention falls, will exit the market due to profitability issues, or simply be limited to their small market share. This is seen in 2024 as [Gojek exited Vietnam](https://en.vcci.com.vn/ride-hailers-race-for-market-share-after-gojek%E2%80%99s-exit) due to struggling to achieve profitability despite 'aggressive efforts, including promotions and localization strategies'. In the long term, I feel, these smaller firms will simply die out, and the challenge that Grab has is to maintain and increase retention for its existing user base. More examples to back up this claim with Uber leaving SEA and Gojek leaving Vietnam are also [Gojek leaving Thailand (did losses in 2019 and 2020)](https://www.thejakartapost.com/paper/2021/07/07/gojek-exits-thai-market-sells-business-to-airasia.html?u) and [Foodpanda leaving Thailand.](https://www.dbs.com.sg/treasures/aics/templatedata/article/recentdevelopment/data/en/DBSV/052025/GRAB_US_05022025.xml) Smaller firms like Maxim also face regulatory issues, [told to cease operations](https://www.malaymail.com/news/malaysia/2025/05/09/loke-russian-e-hailing-apps-indrive-maxim-ordered-to-cease-operations-over-permit-insurance-violations/176192) but are now able to [operate under probation](https://www.freemalaysiatoday.com/category/nation/2025/07/23/e-hailing-firms-maxim-indrive-granted-3-month-probation). These businesses face the risk of not even being able to operate at all, which doesn't show the stability like Grab. Most e-hailing apps are simply not as widely available as Grab, as Grab still maintains its market share and has more users and drivers. The idea for these smaller firms is simply to have small and limited operations for specific areas and be profitable for these small firms, or attempt to expand nationwide and not be profitable (examples above with Foodpanda and Gojek). Grab has maintained its market share in ride-hailing, as mentioned above, from 2021 to 2024. It is unlikely their user base will get affected, as Grab runs the majority of the ride-hailing operations in SEA, as Grab's position remains dominant. ## Grab's users [![change in platform transacting users](https://static.seekingalpha.com/uploads/2025/7/21/61375197-17531561791450627_origin.png?io=w640)](https://static.seekingalpha.com/uploads/2025/7/21/61375197-17531561791450627_origin.png) Grab's Platform Transacting Users (Grab's Investor Relations) Grab's user growth shows that their promotions and burning cash to retain their user base have been successful. This is a huge green flag for Grab trying to build a super-app, as they try to integrate into people's everyday lives, especially for a firm operating in business-to-consumer (B2C). I believe that higher smartphone penetration, more exposure to the digital world, and people needing services such as mobility and deliveries, all lead to a higher user base. With so much B2C choice in SEA and Grab being able to maintain growth, while turning a profit in Q1, this means that this growth is just starting. 119 million of a 700 million population is also only 17% penetration on a yearly metric, and only ~6.4% on a monthly metric. This shows that Grab has so much more room to grow, as the integration of technology similar to Europe and the US through technology transfer is just starting, as smartphone penetration and bank account ownership are all still lower than in Europe and the US (table above). For the next few quarters, key metrics such as maintaining users as well as its profit margin are things to look out for, as the adoption of Grab services is trending upwards. Since in a B2C model consumers can just swap to a different service, it is essential for user growth to trend upwards and Grab maintain their dominant position. ## Grab's financial services segment Grab offers services such as GrabPay, lending, digital banking (GXS Bank) and insurance. Grab has guided for this segment to [break even by 2026](https://investors.grab.com/news-and-events/news-details/2022/Grab-targets-Group-Adjusted-EBITDA-breakeven-by-H2-2024-as-it-accelerates-path-to-profitability/default.aspx), as this is currently trading at a negative adjusted EBITDA. In [Q4 2024 earnings](https://seekingalpha.com/article/4770981-grab-holdings-limited-grab-q4-2024-earnings-call-transcript#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link), it was noted that '90% of the GXS Bank customers in Malaysia came from Grab and the acquisition cost is minimal. The speed at which we've been able to gather deposits and open new accounts we're now up to 4 million new accounts'. This shows that this has huge potential for further growth. Users familiar with Grab mobility or delivery services might try Grab's financial services first if they don't have a bank account, as the reliable app is already at the front of their minds. With their proven consistent user growth in mobility and delivery, this can translate to their financial services user growth. When adjusted EBITDA is no longer negative, it could be a high-growth high-margin business. [![chagne in fianncial services and loan portoflio yoy](https://static.seekingalpha.com/uploads/2025/7/22/61375197-17532014003555744_origin.png?io=w640)](https://static.seekingalpha.com/uploads/2025/7/22/61375197-17532014003555744_origin.png) Financial Services Revenue and Adjusted EBITDA Change YoY (Grab's Investor Relations) In Q1 2025, revenue grew by 36%, with the loan portfolio growing by 56%, all impressive numbers. It is now all about execution, as seen in their adjusted EBITDA%, which has also been falling. [![2025 guidance](https://static.seekingalpha.com/uploads/2025/7/22/61375197-17532015121522925_origin.png?io=w640)](https://static.seekingalpha.com/uploads/2025/7/22/61375197-17532015121522925_origin.png) 2025 Guidance (Grab's Investor Relations) If next quarter's results beat estimates and align with the updated guidance shown in Q1 of a 47%-53% YoY increase in Group Adjusted EBITDA, Grab should look to comfortably achieve its goal of positive adjusted EBITDA by 2026. A thing to note for future earnings is user growth as well, as user growth needs to continue for the financial segment to grow (using mobility/delivery services leads to trying financial services as well). More users also create a larger network effect, as when more people start using GrabPay to transfer money like PayPal, it will attract more users to Grab. Just to keep in mind, the long-term potential and penetration are massive, as GDP per capita rises fast and bank usage is low. In China, Alipay is a huge success, and Grab is sort of trying to replicate paying through GrabPay. SEA is an emerging market where demand will only increase for fintech and ride-hailing services as the cities get more and more advanced, as the potential addressable market is hundreds of millions of users that still have no exposure to Grab fintech products. ## Grab and Uber Competition might be high as local businesses adapt to food delivery and such services, but Grab still has the majority market share in SEA. A risk in these scenarios is that the huge US firms to expand into SEA and dominate the market, as Uber has in this scenario. However, Uber has worked with Grab since 2018, so there should be no fear that a huge firm will come in and compete with Grab, as Uber owns [~14% of Grab.](https://sg.finance.yahoo.com/news/brief-uber-technologies-reports-14-204114191.html) Another positive is that Dara Khosrowshahi, Uber's CEO, is on the [board of directors for Grab,](https://investors.grab.com/corporate-governance/board-of-directors/) as Grab is able to have direct help and navigation with Uber's success in the ride-hailing industry. There is still a chance that an established firm might enter the SEA market, but with Uber's failed attempt, there will be huge doubts for any new entrant. With no real competitors in the market for most of SEA, Grab's market share is highly unlikely to be negatively affected in the long term, especially for ride-hailing, maintaining its dominance. ## Grab acquiring GoTo implications GoTo (or Gojek) is Grab's competitor when it comes to food delivery services, as mentioned above, Grab has ~50%, while GoTo held ~10.5% back in 2023. Grab has been in talks with GoTo to acquire their operations [since 2021](https://en.wikipedia.org/wiki/Gojek), as investors speculate that the acquisition will happen because of Grab's large free cash flow. Sources say that Grab and GoTo have been in [advanced talks](https://www.reuters.com/markets/deals/grab-goto-advanced-merger-talks-sources-say-2025-02-04/) in Feb this year, also [eyeing up a loan](https://www.reuters.com/markets/deals/grab-seeks-2-billion-loan-possible-goto-takeover-bloomberg-news-reports-2025-03-26/) back in March. Grab's cash has to go somewhere, and GoTo is one of the top choices to potentially monopolize the ride-hailing and delivery industries in SEA, as their market share in Indonesia could be [as high as over 90%](https://www.reuters.com/sustainability/boards-policy-regulation/grab-goto-merger-talks-face-indonesian-regulatory-hurdles-sources-say-2025-06-19/). The main component Grab is targeting is GoTo's Indonesia operations, as Grab holds [~70% of ride-hailing market share](https://miracuves.com/battle-of-the-super-apps-gojek-vs-grab/) in SEA, while GoTo holds ~60% in Indonesia and a 'significant portion of food delivery through GoFood.' Indonesia being the largest GDP in all of SEA means that Grab is facing competition in the largest addressable market in SEA. If Grab does acquire GoTo, their dominance in SEA will get larger. GoTo has already exited multiple SEA markets (mentioned above), and the only market Grab has to compete with GoTo is Indonesia (GoTo has a dominant position over Grab). This will heavily benefit Grab if the deal executes, as in the long term, Grab would only compete with smaller local firms as Grab will maintain its user base and continue to capture the majority of the market share (referring back to the argument that Grab has cash to burn and others don't, so Grab can retain more potential customers if GoTo is no longer competition). I would like to see Grab acquire GoTo as soon as possible, as Grab will heavily benefit from this deal in the long term. ## Risks Grab did not repurchase any shares in Q1 and issued a [\$1.25B convertible senior note](https://seekingalpha.com/news/4456675-grab-holdings-files-to-sell-125b-convertible-senior-notes-due-2030#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) upped to \$1.5B, to raise cash shows that Grab is planning something big in my view, such as acquiring GoTo (Gojek), a major player in Indonesia. Mentioned previously of poor margins and high competition, [GoTo has been down 85% all time](https://www.tradingview.com/symbols/IDX-GOTO/?timeframe=ALL). I believe Grab, in the long term, will benefit from this acquisition if it happens, but execution risk still exists when such a deal/acquisition takes place if it does. They are raising more cash, which could suggest that Grab could overpay for GoTo, despite their market cap near its bottom. However, if Grab executes this at a good price and does not overpay, Grab's investor confidence will increase significantly. Grab and GoTo also have [regulatory pressure](https://eastasiaforum.org/2025/07/03/grabs-acquisition-of-goto-is-a-big-test-for-indonesias-competition-regulators/#:~:text=In%20Brief,consumers%2C%20innovation%20and%20small%20businesses), as more time may be needed for Grab to complete the deal, which may decrease investor confidence (I believe investors want GoTo under Grab to increase market dominance). [Grab has also denied reports](https://www.techinasia.com/news/grab-denies-reports-7b-goto-acquisition) of any discussion between the parties, as this may lead to lower long-term optimism if Grab faces competition with Gojek in some SEA countries such as Indonesia. Another risk is that SEA doesn't have fully developed public transport yet, which may lower Grab's demand as trains/trams may be more suitable and cheaper for individuals when they are widely available. Malaysia is the [3rd biggest SEA](https://www.theglobaleconomy.com/rankings/gdp_per_capita_ppp/South-East-Asia/) country in terms of GDP per capita, with a capital (Kuala Lumpur) that has a good public transport system. Now focusing on a specific Malaysian state, Penang, is home to high foreign direct investment (FDI) inflows into the state, including US tech firms such as Lam Research ([LRCX](https://seekingalpha.com/symbol/LRCX#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)), Intel ([INTC](https://seekingalpha.com/symbol/INTC#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)), Dell ([DELL](https://seekingalpha.com/symbol/DELL#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)), and many more. Penang has high inflows of FDI as well as being ranked [top 3-5 in terms](https://en.wikipedia.org/wiki/List_of_Malaysian_states_by_GDP) of GDP and GDP per capita among Malaysian states and territories. However, they don't have a developed public transport system. Something to point out on the stats: Kuala Lumpur and Labuan are top 5 but are not Malaysian states. Kuala Lumpur is a territory in Selangor, and Labuan is a territory in Sabah, as Penang ranks high in both metrics in terms of Malaysian states, only really behind Selangor (which has KL capital). In Penang, there are 2 sides, one that is with the mainland (island 1) and one that is not, connected by a bridge (island 2). The capital is on island 2 and away from the mainland. Island 2 has no rail systems throughout the whole city, and only recently started construction within island 2 and is [expected to be ready in 2031](https://www.scoop.my/news/264447/mutiara-lrt-project-kicks-off-as-penangs-six-year-construction-timeline-begins/). The only existing rail system in Penang is on island 1 in the corner of the state, connecting Penang to the country's capital, Kuala Lumpur. To travel from island 1 to 2, it is only via car (drive yourself or Grab), bus, or ferry. There are also no plans to link one island to the other today via a rail system. This is one example, but the idea is that Grab can penetrate these markets because their public transport systems are so underdeveloped. Individuals may be forced to use Grab during certain times, such as when the bus stops running or a location far away from buses. This is a long-term risk, as when public transport systems get more developed for SEA countries and for smaller cities such as Penang, Grab's demand will fall as users have more choices. Being cheaper with minimal changes to users' daily lives, trains may be the first choice for Grab. If Grab sees a noticeable demand decline due to increased public transport availability throughout SEA, it will show that Grab services are no longer needed as the norm for some individuals, but as a luxury. Another long-term risk is full self-driving (FSD), as Tesla Robotaxi and Alphabet's Waymo are already launching in the US with hundreds of thousands of paid rides weekly. With a lower cost for FSD, regular hailing service will be obsolete if FSD is at full scale. However, a key thing to note for this risk is location. This is SEA, not Europe or the US. Motorcycles are widespread, and roads could be argued to be more dangerous, being flooded by motorcycles and uneven roads. FSD will need to be fully developed and launched in Europe and the US to even start considering dropping it in SEA due to its different road conditions, as this may be a risk whenever FSD is a norm in society in Western countries. With Uber partnering up with Waymo, Uber's participation in Grab could lead to FSD being brought over to SEA, which will be run on Grab's platform anyway, as Grab is already the dominant player with ties to Uber. ## Valuation [![Grab's Valuation Metric](https://static.seekingalpha.com/uploads/2025/7/22/61375197-17532022056889076_origin.png?io=w640)](https://static.seekingalpha.com/uploads/2025/7/22/61375197-17532022056889076_origin.png) Grab's Valuation Metric (Seeking Alpha Valuation Tab) Grab from a P/E GAAP basis could seem overvalued, considering Uber, Lyft, and DoorDash trades at forward P/E of ~32, ~65, and ~112, Grab does look a little bit expensive. Grab is a long-term play, as the potential customers for SEA is so large, and Grab is just starting. Uber, Lyft ([LYFT](https://seekingalpha.com/symbol/LYFT#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)), and DoorDash ([DASH](https://seekingalpha.com/symbol/DASH#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)) are already established players operating in saturated markets. Grab is also building a 'super-app', combining fintech, ride hailing, and mobility. Their revenue growth for any segment isn't slowing down, and will only get better as exposure gets larger. Grab also trades with a huge cash flow, more than 30% of their market cap, which, after debt, none of the firms can compare to. With sources estimating that Grab will [trade at a P/E of 41](https://finbox.com/DB:A6I/explorer/pe_fwd/) by the end of 2027, Grab is not that expensive considering that their financial segment is still at a negative adjusted EBITDA. Once this is positive and Grab is able to show it can be positive by 2026 (direction is heading that way), Grab's long-term user/revenue trajectory as SEA starts adopting digital services could be double or triple. ## Conclusion Grab is a long-term play, betting on the idea that Grab can execute in SEA as the next super-app despite high local competition that can undercut their prices. Their revenue and adjusted EBITDA are all trending in the right direction, as they continue to dominate the mobility and delivery markets. It is only time before smaller local players can't keep up with Grab, as they are limited to their small market share and lower revenue. With their next earnings report in a few weeks, we will have more clarity on Grab's trajectory and whether it is still maintaining its forecast of 2026 positive adjusted EBITDA, which the trend should be perfectly in line with as Q1 showed their stable user growth. Grab is already the dominant player in SEA, will maintain its dominant position as offering products that are not widely common and available in SEA, yet creates high-growth potential for Grab, and it is just starting. 1\.93K Followers Analyst’s Disclosure: I/we have a beneficial long position in the shares of GRAB either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
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