Will you invest in Grab?

A friend of mine who runs a restaurant told me that GrabFood takes 25 - 30% cut of the food transaction value.

They can do that because they are a superapp. It is vastly different from Uber.

Currently, some say they are loss-making in certain countries. It is because they have been reinvesting huge chunks of profits back to grow the market. It is quite similar to the playbook which Shopee has adopted for Southeast Asia market.

Never say never.... until we see the financials! For now, I am leaning towards no.

Hi Gabriel,

I would not. They are burning cash faster than earning it, and I just see no way that they can make it sustainable at this point in time. Unless they can show a way to consistent profitability, I will pass at this point.

I would however, speculate in Grab stock. In other words, if I have a bit of pocket change that doesn't really matter to me, I'll just put a little in to see how it pans out.

I won't unfortunately (sorry Zhi rong).

The cash burn rate for Grab is too high ranging from 30-50 million per year and they have an UBER preference share option which can be exercised in 2023. Grab has to pay Uber s$2.1 Billion dollars.

Until the cash burn rate is reduced and the Uber overhang is reolved, then i would re look at its financial statments and consdier investments.

If its publicly listed, I won't mind putting out for some shares. At its current status, no.