As a pure eHailing business, I would say it is a subpar business model.
From an angle that it covers delivery in the F&B as well a the grocery range, I can see huge potential. Already I see habitually it sticks once the users use it for a few times. Makes things so much more convenient. And convenience is a big factor.

Combining all of these into a market dominated super app is something I think is likely to happen.

So yes, I do see the business case.

A lot of grocery big stores also have their own delivery service.
The competition in this area is intense.

Once pandemic over, more and more people may opt for dine in and less F&B delivery.
For F&B, dine in is still a prefer choice for many.
F&B with tapao with delivery wont' able to match the dine in experience whether in term of taste, environment, and comfort.

In my housing area, already see less F&B delivery once dine in is allowed and more people dine in in kopitiam and restaurant.

while most will still use it albeit less frequently, this is a trend but take the drivers, sellers and regulations into the discussion, there are many sides to be considered and consumers will just have to accept that things are gonna be more expensive in the name of 'convenience'.

and since it's a not-so-difficult business model, big stores can setup their own delivery services for efficiency

saturation will be an issue in the future, not so soon though as what we see from uber, as references



perhaps the tipping point would be full autonomous/driverless for more earnings, cutting off the drivers

Important is the proprietary technology stickiness i guess.

Like google case bing or yahoo or ask will never replace it due to its superior technology in getting the result user wanted although many try to replicate the business.

For grab , so far apart from being fast mover and branding i think uber, didi, airasia, shopee could easily pump money and compete with them, as they dont differentiate enough in terms of technology, hence this could be a very competitive industry in future. Its basically like ecommerce, easy to replicate.

Grab's entire premise lies on it's ability to establish dominance in the SEA market.
2022 will be critical. Won't be surprised to see acquisitions as part of the overall strategy.

other apps are trying to emulate Grab though like airasia and Shopee.

now looks like change lane to coach enterprise to raise capital or IPO... lol

This post has been edited by labtec: Dec 13 2021, 02:35 PM

Got ppl so gullible meh?

What do you think?

oh i thought it's franchising now

otherwise how these gurus afford their lambo's? by buying topglove meh

Kakakaka!

You should had follow them buy saham...................

Many businesses e.g delivery, ghost kitchen, online marketplace, etc could be copied without much difficulty. However, how many have cash to burn until achieving dominant like Didi, Alibaba, Uber, etc.

It seems grab merger didn't have lock-in period and many of its investors cashed out.

Well the problem of grab model is that its not particularly innovative hence the price competition and all year discount model.

Its distorting real economic value via cash burn. If grab tomorrow charge mcd delivery rm8 per trip will people use grab or people use mcd own delivery instead. Its the same for ride hailing.

Thats why im wondering can grab do an amazon or will they just be a wework.

You do know uber also know this limitation of theirs hence they throwing all their money on driverless tech to be more like google instead.

Driverless and AI is costly, and massive initial capital investment needed and potential with high cash burn rate on going.

If a driverless ehailing just cost a few RM per trip and a few hundred per day revenue, it is difficult to balance the book and cash flow generation.

ehailing is popular because of its inexpensive at current rate.
If ehailing per trip needs to cost 40-50, not many people can afford it anymore. If so, It may drive people back to public transport like MRT.

Uber also got out competed by Grab

Their business model is just bleeding cash.

Whoever has the deepest pocket survived. A reason why CCP is clipping Baba's and SoftBank wings.

This post has been edited by icemanfx: Dec 13 2021, 07:05 PM

Yup, literally outlast your competition and last one standing takes it all.

Some funds view it as a tech/software company

Like how tsla is ev/battery/Hyperloop/SpaceX all in one, hence the evaluation

Pandemic time, glove stocks sibeh fast out QR... Now song over liao, QR macam Serba.