Roads & Transportation

India is prize worth keeping for Uber

20 April 2018

The ride-hailing giant says it won’t exit the market with a minority stake as it did in Southeast Asia and China. Uber has a narrower gap with local rival Ola and the country can serve as a good test-bed for new ideas. Without India, Uber would also look less global in an IPO.

Cox: Belt and Road paving way to worrying excess

17 April 2018

Hallmarks of speculative exuberance abound with China's plan to recreate modern Silk Road trade routes. There are fancy new banking jobs, silly conferences and creative investment ideas. The danger is the $1.5 trln initiative devolves into an epic era of capital misallocation.

Apollo’s Greyhound bet looks past UK politics

12 April 2018

Transport operator FirstGroup has rejected an approach from the U.S. buyout giant. The offer is bold given the UK backlash against rail privatisation. But the company’s American operations, including the iconic long-haul buses, help support its 1.3 bln pound market value.

Meituan deal sets pace in Chinese bicycle-sharing

4 April 2018

The food-delivering, ticket-booking, ride-sharing app is buying Mobike for $2.7 bln. Given the competitive and cash-burning realities, investors should be relieved at the sale. For rival Ofo, which just raised nearly $900 mln more from Alibaba and others, the riding gets tougher.

GKN owners should stick with the devil they know

23 March 2018

The UK engineer’s shareholders must choose whether to accept Melrose Industries’ $11 bln hostile cash-and-share bid. The buyer has a record for turnarounds, while GKN has missed targets. But Melrose’s plans are vague and riskier. GKN deserves the benefit of the doubt.

Daimler’s creepy Chinese suitor scrubs up well

21 March 2018

Geely’s earnings doubled to $1.7 billion in 2017, as its SUVs flew off the lots. Chairman Li Shufu’s surprise stake-building ruffled feathers in Germany. But Li’s company is trouncing Daimler’s current local partner, BAIC. That might in time prompt a rethink in Stuttgart.

D.C. subway could ride Hong Kong’s MTR

20 March 2018

The Washington Metro's equipment and safety woes are a smoking symbol of U.S. infrastructure ineptitude. Market-based fixes would be wise. Other cities have hired Hong Kong's mass-transit provider for help, but its property and punctuality playbook also may be replicable.

Qantas can ride an Australian recovery

22 February 2018

The flag carrier has pulled away from regional rivals, with impressive cash generation and record pre-tax profit. Shares are up 70 percent from early 2017, and it is renewing its fleet. Still, higher oil prices and any extra domestic competition could yet mean turbulence.

Old activist needs to rent new strategy for Avis

16 February 2018

Hedge fund SRS is waging a proxy fight for three seats on the car-rental company’s board. Avis is a ripe target, having struggled with price pressures and missed targets. But an eight-year investor with two directors in place already isn’t the most persuasive agent of change.

Nissan’s partners can help it shift to higher gear

8 February 2018

The $42 bln Japanese automaker's operating profit tanked, as it discounted cars in America and a domestic inspection scandal took its toll. That will keep its laggard valuation stuck in neutral. Nissan's challenge is to make the most of its alliances with Renault and Mitsubishi.

Ola puts SoftBank in back seat with overseas drive

5 February 2018

The Indian ride-hailing outfit wants a slice of the action in Australia. The intrusion into one of Uber’s strongholds will irk SoftBank, which is a big investor in both firms. The Japanese group’s minority stakes clearly are not enough to stop fights between taxi startups.

Gasoline tax is obvious infrastructure piggy bank

18 January 2018

The U.S. Chamber of Commerce wants a 25 cents-a-gallon increase to raise $400 bln for investment in transportation. It seems a contrary proposal coming from a group whose members just secured huge tax cuts. But it makes sense: American gas is cheap, and a higher levy is overdue.

Indonesian ride-hailing unicorn races to relevance

18 January 2018

Go-Jek is bringing in new backers including Alphabet and Temasek, sources say, as it expands its platform model across Southeast Asia. To ward off local rivals and be a serious contender in a cutthroat business, the now $4 bln startup has to grow quickly. Deep pockets help.

Uber’s next ride-share could be in Southeast Asia

17 January 2018

After struggling in China and Russia, the app operator swapped its businesses there for stakes in Didi and Yandex. Another sensible partner would be $6 bln-plus Grab, which shares a backer in SoftBank. As Uber aims for an IPO, it's a good region in which to cut further losses.

Ford’s Living Cities dream needs financial reality

9 January 2018

The automaker is developing ambitious software to boost urban connectivity and companies’ revenue while reducing pollution and congestion. Trouble is, the best way to profit from this grand city plan is to make and sell lots of self-driving cars. That’s where Ford lags rival GM.

Mobike veers cautiously into Didi’s taxi lane

8 January 2018

The Chinese bike-sharing unicorn has secured an investment from carmaker FAW as part of a wider push to expand into shared automobiles. It's an effort to rattle rival Ofo's alliance with $56 bln ride-hailing giant Didi. Catching up will be a slog, but may be worth the effort.

Duterte’s infrastructure push needs more than cash

2 January 2018

A new revenue-raising tax bill will help Philippines President Rodrigo Duterte pay for a “golden age of infrastructure” to increase competitiveness and living standards. The challenge will be to deploy the proceeds efficiently and without fostering corruption.

SoftBank’s ride-hailing roadmap is unreadable

21 December 2017

The Japanese group invested yet more in China’s Didi, as part of a $4 bln fundraising, and wants to put billions into Uber. Yet as Didi expands abroad, fresh conflict with Uber is inevitable. SoftBank may envisage a merger, but for now it is funding both sides of an arms race.

China’s belt will get tighter and its road bumpier

20 December 2017

Xi Jinping's ambitious infrastructure plan enters its fifth year with some notable struggles. Countries are pushing back for political and economic reasons while Chinese banks grapple with mounting debt. So-called Belt and Road projects require more of a team effort in 2018.

A deluge of scandals in Japan will drive change

19 December 2017

Embarrassing lapses in governance and, perhaps even more painfully, in quality control have dented the country's reputation. The revelations are likely to continue in 2018. Company bosses will need to show that they understand what is really going on inside their organisations.