Table of Contents

• a. Grab 101

• b. Key Points

• c. Demand

• d. Profits & Margins

• e. Balance Sheet

• f. Guidance & Valuation

• g. Call & Release

• h. Take

a. Grab 101

GRAB offers a consumer-facing app that closely resembles Uber across 8 countries in Southeast Asia. The enterprise was founded 13 years ago, with a mission to “drive Southeast Asia forward with economic empowerment for everyone.”

It provides a broad range of mobility and delivery products, which range from premium to highly affordable offerings to cater to all needs. On the delivery side, it has “GrabFood” for restaurants, and “GrabMart” for other retail businesses. It features a budding self-serve advertising business for both mobility and delivery, with more traction so far in delivery.

Unlike Uber, its third product pillar is financial services. This offers merchant and consumer loans that are mainly funded by partners like Citibank through “GrabFin.” At the same time, it also has stakes in three banks: GXBank in Malaysia; GXSBank in Singapore; SuperBank in Indonesia. Charters allow Grab to more easily comply with complex regulations, give it more flexibility to house deposits and free it to offer more credit tools, including larger loan sizes and specialized products. Looking ahead, it plans to grow its loan portfolio and directly originate more of its own credit. One can view the rapid proliferation of its deposit base as a prerequisite for this, as the firm secures low-cost liquidity needed to drive this shift. Aside from loans, this product category includes wealth management, insurance, savings accounts and a checkout accelerator called GrabPay. It offers “Ovo” as its digital wallet to seamlessly access its payment tools.

Similarly to UberOne, Grab infuses all of this product suite utility into an overarching consumer subscription called GrabUnlimited. GrabUnlimited quadruples order frequency and fosters strong churn and lifetime value (LTV) benefits, just like for Uber. It makes the company’s revenue more visible and its products more differentiated vs. point solution competition. 

b. Key Points

• Somewhat underwhelming but still fine quarter with accelerating gross merchandise value (GMV) growth.

• Strong credit health. 

• Conservative guidance.

• New product launches all continue to work.

c. Demand

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