Greg Au-Yeung

https://lnkd.in/gvxzPPcC #GRAB #UBER #Ride-hailing #Delivery #Travel #AI Recently, Grab (NASDAQ: GRAB) released its Q1 2024 financial report, and investors are curious whether Grab can replicate Uber's (NYSE: UBER) growth trajectory to become a cash cow in the ride-hailing market. However, even using the same business model, cultural differences and economic disparities might hinder exact replication; an example is the West's Booking.com, which in its Q4 2023 earnings call attributed historically high expenses for employee stock options as a competitive strength, whereas Grab's recent call highlighted reducing such expenses as a boost to its competitiveness. Haize Capital suggests using Uber as a benchmark to assess Grab's weaknesses, competitive advantages, and potential benefits from artificial intelligence, and provides the following analysis: 1. Grab struggles to fully replicate Uber: This quarter, Grab reported an adjusted EBITDA of $62 million, turning a year-over-year loss into a profit, and growing 42% quarter-over-quarter. However, after turning operationally profitable in Q4, it slipped back into an operating loss of $75 million in Q1. The summary of separate financial centers across departments totaled $153 million, a 33% decrease from Q4. This indicates that Grab's progress from EBITDA profitability to GAAP profitability is more susceptible to seasonal variations than Uber. Fundamentally, the ride-hailing and delivery business models trade driver time for consumer time, relying on significant economic disparities, a concept yet to be fully validated in Southeast Asia. Currently, Grab's strategy in its ride-hailing and delivery lines involves catering to different consumer spending capacities with products like "Saver delivery," "Standard delivery," and "Priority delivery," using Saver delivery to boost order volume and Priority delivery to enhance EBITDA margins. 2. Grab aims to build "travel" as a competitive moat: In its recent earnings call, Grab clarified the value of "travel" to its business. Beyond regular collaborations with tourism authorities like the Tourism Authority of Thailand, the contributions from B2B distribution and B2C direct sales are scaling up, especially the B2B segment which has partnerships with Trip.com (NASDAQ: TCOM), Alipay, WeChat, and Booking.com (NASDAQ: BKNG), showing strong performance in airport transfer services. The data shows that this quarter, the total number of payment users for the group is 38.5 million, a 16% YoY increase; payment users for on-demand services like ride-hailing grew by 19% YoY; while payment users from B2B and B2C travel increased by 69%, driving the growth in payment user base. Grab also noted that travel customers are considered "premium" users, spending about twice as much daily on Grab compared to domestic users; however, the company did not disclose the quarterly number of travel users or the potential market size. 3. AI in travel scenarios: Beyond-

𝐓𝐡𝐞 𝐎𝐧-𝐃𝐞𝐦𝐚𝐧𝐝 𝐆𝐫𝐨𝐜𝐞𝐫𝐲 𝐑𝐮𝐬𝐡: 𝐍𝐚𝐯𝐢𝐠𝐚𝐭𝐢𝐧𝐠 𝐭𝐡𝐞 𝐀𝐢𝐬𝐥𝐞𝐬 𝐨𝐟 𝐂𝐨𝐧𝐯𝐞𝐧𝐢𝐞𝐧𝐜𝐞 𝐚𝐧𝐝 𝐒𝐮𝐬𝐭𝐚𝐢𝐧𝐚𝐛𝐢𝐥𝐢𝐭𝐲 🛒💨 Beijing's 🇨🇳 on-demand #grocery 🛒 scene is a microcosm of a #global trend, where tech giants like #Meituan, #JD.com, and #DingdongMaicai are locked in a fierce battle for dominance. These companies deploy diverse strategies, from leveraging existing service #ecosystems to rapid e-commerce adaptations and even emphasizing private label products. It's a fascinating display of #innovation, but it raises important questions about this #business model's #sustainability and broader implications. 🤔 Here in #Singapore 🇸🇬, we're experiencing this on-demand grocery and food rush firsthand, with platforms like #GrabMart and #Foodpanda becoming integral to our daily lives. 𝐴𝑛𝑑 𝑦𝑒𝑠, 𝐼'𝑙𝑙 𝑎𝑑𝑚𝑖𝑡, 𝐼'𝑚 𝑜𝑛𝑒 𝑜𝑓 𝑡ℎ𝑒 𝑚𝑎𝑛𝑦 𝑐𝑢𝑙𝑝𝑟𝑖𝑡𝑠 𝑤ℎ𝑜 ℎ𝑎𝑣𝑒 𝑒𝑚𝑏𝑟𝑎𝑐𝑒𝑑 𝑡ℎ𝑒 𝑐𝑜𝑛𝑣𝑒𝑛𝑖𝑒𝑛𝑐𝑒 𝑜𝑓 ℎ𝑎𝑣𝑖𝑛𝑔 𝑓𝑜𝑜𝑑 𝑑𝑒𝑙𝑖𝑣𝑒𝑟𝑒𝑑 𝑡𝑜 𝑚𝑦 𝑑𝑜𝑜𝑟𝑠𝑡𝑒𝑝. 🙋🏻‍♂️ The constant stream of delivery vehicles clogging our roads and contributing to carbon emissions is a stark reminder of the #environmental cost of our insatiable appetite for instant gratification. 🚗💨 While doorstep delivery of fresh produce might seem like a dream come true, it could fuel impulse buying and exacerbate our #foodwaste problem. 😫 The intense competition among these companies also raises red flags 🚩. The article highlights how these companies offer aggressive promotions and discounts to capture market share. While this might seem beneficial for consumers 🛍️ in the short run, it raises serious questions about the long-term sustainability of this model. Can these companies achieve profitability without relying on these unsustainable practices? 🧐 The on-demand grocery 🛒 delivery model is undoubtedly a game-changer, offering unparalleled convenience and transforming our #shopping habits. However, it's crucial to acknowledge the potential pitfalls and ensure that this model doesn't come at the expense of our #environment and #society. 🌍 As #investors, we need to be discerning and consider the long-term viability of these companies. Are they prioritising sustainable practices and fair #labour conditions? Are they #investing in innovative solutions to minimise their environmental footprint? 🌱 These are crucial questions before jumping on the on-demand grocery 🛒 bandwagon. Let's not get swept away by the convenience wave without considering the ripple effects it could have on our planet 🌏 and our future🔮. It's time to have a serious conversation 🗣️ about making this on-demand model truly sustainable and equitable for all. Check out this insightful article (in Chinese, though) for a deeper dive into the intricacies of this battleground in #Beijing, which offers a valuable glimpse into this rapidly evolving landscape. #OnDemandGrocery #Sustainability #ESGInvesting #GroceryWars

Hubei Hongtai Group to Increase Stake in Tianfeng Securities Hubei Hongtai Group has announced its plans to increase its stake in Tianfeng Securities, with an expected increase in the range of 2.1 billion to 4.2 billion shares, equating to a 2.3% to 4.6% increase. This move aims to boost market confidence in Tianfeng Securities and safeguard the interests of small investors. Following the increase, Hongtai Group and its concerted parties could hold a maximum of 27.22% of Tianfeng Securities' shares. This action serves as crucial support for Tianfeng Securities following a significant drop in stock price before the Dragon Boat Festival. As a result of the stake increase news, Tianfeng Securities' stock price rose on June 11, closing at 2.39 yuan per share, a 0.84% increase from the previous trading day. # Thank you Yuan Wei Ling for your submission!

Hong Kong and Singapore-based KPay, which offers financial management tools to merchants and SMBs, raised a $55M Series A led by Apis Partners (Kate Park/TechCrunch)​ 

Hong Kong and Singapore-based KPay, which offers financial management tools to merchants and SMBs, raised a $55M Series A led by Apis Partners (Kate Park/TechCrunch)​ 

Japanese chipmaker Kioxia’s dramatic valuation drop from $18B in 2018 to $5.1B in its upcoming IPO is due to its high debt and lower AI exposure than rivals (Jacky Wong/Wall Street Journal)​ 

Japanese chipmaker Kioxia’s dramatic valuation drop from $18B in 2018 to $5.1B in its upcoming IPO is due to its high debt and lower AI exposure than rivals (Jacky Wong/Wall Street Journal)​