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This prediction on Grab is made on 24th February 2024, where the price is currently at $3.16
The current price of $3.16 has dropped significantly versus the IPO price of $13 back in 2021.
However, I think GRAB has tremendous potential in the long run, and I predict the shares price to grow exponentially in the future and hit $50 per share.
To make things interesting, I am investing $1,000 in Grab’s shares via Interactive Brokers and let’s see the results in a few years!
Updates on Share Price:
Prediction made on Feb 2024: $3.16
11 July 2025: $5 (up 58%)
3 October 2025: $6.16 (up 95%)
Next update Dec 2025:
Here are the reasons why I am bullish on Grab.
1: The Path to Profit Making
Like any tech company, Grab was operating at a loss for many years as they invested to gain market share.
The question most investors would then ask is, can the company ever turn profitable, having operated at a loss since Grab’s inception in 2012
However, in the recent quarter results (4th quarter 2023) and 12 years later, Grab posted their first ever profitable quarter.
With this strong quarter, Grab has also announced $500 Million shares buy back, indicating the management’s strong confidence in the profit making potential of the company.
2: The Start of 2 New Business Model
Currently Grab is well-known for 3 things – Transport, Food Deliveries, and Groceries.
While Grab has to share profits with their drivers/riders for the 3 business models above, the next 2 businesses that they have diversified into are highly profitable with high margins and hard for competitors to replicate.
Let’s look into each, starting with:
New Business Model 1: Native Ads Income
Two of the largest companies in the world, Google and Meta rely heavily on ad revenue as the margins are high and it’s easily scalable.
Side note: Meta has invested (wasted) billions into the Metaverse and failed badly so far, however they are blessed that their bread and butter ad revenue segment continue to perform well and kept the company’s revenue up while Mark Zuckerberg dabbled with the Metaverse.
The same goes for Google, despite launching many new initiatives, Google ads is still the most profitable business model.
Having acquired hundreds of millions of users in Southeast Asia, Grab is now selling ads space on the app as well, with the following example, where Celcom Digi is the advertiser:
Besides Transport, they are also having ads on their Food delivery section.
I foresee ad revenue will be a big part of Grab’s profit margin in the future as the ads can appear on their main page and respective individual page on transport, food delivery, and groceries, giving advertisers plenty of ad space and potential revenue to Grab without having to share the profit with their delivery partners.
High profits, High margins. That’s the appeal of ads.
New Business Model 2: Digital Bank Interest Income
Banks are often known as Bluechip stocks as they typically report sky high profits each year. The business model is simple and easy to understand, banks lend money out and earn interest income.
When done at scale (as most people would borrow to buy house/car), the profits are handsome!
Having gotten the digital bank license, Grab now has its own bank, GXBank in late 2023.
While digital banks are still in their infancy, Grab is unlikely to earn much from interest income in the next couple of years.
However, as the acceptance of digital banks grow and if Grab can provide favourable interest rates to compete with traditional banks, the potential is endless as Grab would not need to pay a middlemen for their interest income.
All in all, Grab’s revenue model is well diversified with the new additions of Ads and Digital Bank.
3: Survival of The Fittest: The Grab Monopoly
Few years ago the transport industry is a blood bath, with Grab going to head to head with Uber.
While many had expected Uber to win this battle, Grab has emerged as the winner and with this victory they monopolised the transport market in majority of the South East Asia countries.
While Air Asia is trying their best to compete, Grab ultimately is still the no.1 choice at the moment.
Besides transport, Grab is also winning the food delivery battle with Foodpanda as there are talks of Foodpanda selling their business to Grab or other buyers.
Grab has proven that they are champions in their field and continue to innovate and deliver great service to customers.
4: The Founder
Founders such as Elon Musk, Mark Zuckerberg, Bill Gates, Jeff Bezos etc are the key to growing their company and exceed investors’ expectations.
Investor’s confidence would also be higher if they know the capability and track record of the founder of the company.
Grab’s co-founder and CEO is Anthony Tan, who helped spur Grab to achieve the status of being a unicorn. Anthony has an MBA from Harvard and is still young at only 41 years.
With plenty of time and energy, I can see Anthony taking Grab to the next level in the coming 10-20 years.
Conclusion
Grab has amazing potential and I expect them to do well in the future, especially on the profit end.
And that’s a wrap, join me next week for the next business predictions.
Disclaimer: This is not financial advice, remember to do your own research.
