I think DIDIY is a far better value than GRAB. DIDIY generates much higher revenue than GRAB and is much cheaper than GRAB on almost any valuation metric (other than EV/EBITDA). Basically, DIDIY is much cheaper given regulatory risk and so the growth premia you see in GRAB is not reflected in DIDIY stock price. Over time though DIDIY will only grow more as its balance sheet is much stronger.
What interests me most about Grab is deliveries and FinTech, and as an extension, Mart and Ads. DiDi has none of those to the extent Grab does. It is also facing strong competition in ride-hailing. While valuations may be cheap, it is cheap for a reason.
Hey Ruben, great question. I would prefer for them to focus on their FinTech business this year, perhaps doing acquisitions like Validus to expand their offerings. I think entering new verticals will be tempting, but I'm not convinced their lead is strong enough.
ShopeeFood looks to be expanding this year and would put pressure on them. I also believe they should look to acquire as many users as possible in mobility/deliveries while maintaining positive unit economics.
Great work Gab! Grab surely very looks well-positioned to continue their steady and strong growth trajectory in the next few years!
I think DIDIY is a far better value than GRAB. DIDIY generates much higher revenue than GRAB and is much cheaper than GRAB on almost any valuation metric (other than EV/EBITDA). Basically, DIDIY is much cheaper given regulatory risk and so the growth premia you see in GRAB is not reflected in DIDIY stock price. Over time though DIDIY will only grow more as its balance sheet is much stronger.
What interests me most about Grab is deliveries and FinTech, and as an extension, Mart and Ads. DiDi has none of those to the extent Grab does. It is also facing strong competition in ride-hailing. While valuations may be cheap, it is cheap for a reason.
Great read! I’m currently accumulating shares of GRAB as I think it’s one of my stronger investments.
The consistent growth and clear business plan leaves little room for doubt.
This stock is criminally underrated.
My brother is huge on this — I’ll have to give it a look
Would you like to see them entering new verticals this year ("superapp" thesis) or focus on strengthening the current offerings?
Hey Ruben, great question. I would prefer for them to focus on their FinTech business this year, perhaps doing acquisitions like Validus to expand their offerings. I think entering new verticals will be tempting, but I'm not convinced their lead is strong enough.
ShopeeFood looks to be expanding this year and would put pressure on them. I also believe they should look to acquire as many users as possible in mobility/deliveries while maintaining positive unit economics.
Nice