$Grab Holdings (GRAB.US)$ The end goal of any company is to ...
$Grab Holdings(GRAB.US$ The end goal of any company is to eventually earn more money than you put in. Grab's strategy to do so since 2012 has failed so far, and they do not seem to have any coherent plan to achieve it. The intent was to haemorrhage money investing aggressively in customer growth, until it becomes so dominant that it could force out its competitors. Unfortunately that didn't seem to have worked out. The competition in all operating sectors is stronger than ever before, and most consumers in the SEA region are extremely price sensitive, meaning their users would simply switch to the plethora of alternatives the moment Grab attempts to raise prices to a breakeven level. Hard to see how this company can ever earn anything from this perspective.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
102315873OP : And to those regular users of the Grab app, you should be hoping that Grab never reaches such a dominant position. Prices would rise far above what they are now. For e.g. Do you really believe the ~$5 or so fees you are paying is sufficient to cover the full cost of your food delivery?
Emily : SG$5 is not cheap liao man
M103079281R : That's what they said for amazon too
102315873OP M103079281R: You do realize that the vast majority of startups fail without ever generating a cent in profit? The vast majority of the time, the naysayers are correct. It's illogical to think that because Amazon was successful, Grab will be as well. Their business models are very, very different.
102315873OP M103079281R: Amazon's success stems from the fact that it controls the entire infrastructure on which it's deliveries are made, from procurement, to inventory management, to customer delivery. That's what it was spending all those initial years developing, and that's the reason it has such strong market power. Amazon always had a coherent plan to eventually start making money. In contrast, Grab's strategy today is still more or less the same as Grab's strategy 10 years ago - attempt to outlast everyone else by aggressively lowering prices below the breakeven point, and hope to be the last one standing. It has already been proven time and again that this doesn't work.