Why Grab Holdings Stock Slumped by 12% in September
Delivery and ridesharing services provider Grab Holdings (NASDAQ:GRAB) didn’t provide its investors with much of a lift in September. The company struggled with labor discontent in one of its major Southeast Asian markets and, on the financial side, disclosed a deal to acquire a financial services business.
Market players didn’t react positively to either development and pushed the company’s stock down by 12% that month. I think they have valid causes for concern.
That hotspot for Asia-headquartered Grab was Vietnam, where contract drivers staged a two-day “app boycott,” logging off from the system and encouraging consumers not to transact with the company. This was in protest of recent policy changes by the company that, numerous drivers claim, significantly reduced their earnings.
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