Chancellor: A 300-year bubble worth remembering 12 Dec 2019 Next year marks the tricentennial of England’s most notorious speculative mania. Even the great mathematician Sir Isaac Newton couldn’t resist The South Sea Company’s charms. Unicorn and cryptocurrency crazes suggest financial practices haven’t improved much over the centuries.
SoftBank WeWork debacle is dot-com bubble déjà vu 4 Dec 2019 Boss Masayoshi Son’s first Silicon Valley foray in the 1990s saw busts around now-notorious online grocer Webvan and others. After the WeWork rescue and Uber’s post-IPO slide, a third shot in the form of a second $100 bln-plus Vision Fund will encounter more investor skepticism.
Uber love-hate cycle becoming tech’s new norm 26 Nov 2019 Success has brought the ride-hailing app loyal customers, but also bitter enemies. Car-sharing startup Turo, which has attracted the ire of U.S. auto rental firm Enterprise, shows it’s a problem for other disruptors too. Turo has a good case, but that’s not always enough.
Meituan Dianping profit recipe lacks secret sauce 22 Nov 2019 China’s $68 bln food-delivery company had its second consecutive quarter in the black. Good weather and restaurant ad revenue helped. As global rivals have found, though, the ingredients for sustainable profit are elusive. It’s not clear yet Meituan has sourced them either.
SoftBank’s mea culpa may be too little, too late 6 Nov 2019 The group posted a $5 bln writedown on WeWork and others. Poor judgement on valuations has led to poor performance. Meanwhile, concerns about SoftBank’s own accounting wizardry, and more, remain. Boss Masayoshi Son has much to do to restore his reputation as a visionary investor.
Nio enthusiasm overheats with Intel inside 6 Nov 2019 The Chinese electric-car maker struck a new deal with the chipmaking giant’s autonomous-vehicle arm, Mobileye. It’s a promising partnership for sputtering Nio. A dearth of details and the industry’s fledgling nature, though, mean a 37% jump in market value is too optimistic.
India Insight: Oyo gives off a WeWorky vibe 14 Oct 2019 Ritesh Agarwal’s $10 bln upstart is pushing into co-working, cloud kitchens, weddings and more, frantically expanding beyond its base as the world’s No. 2 hotel rooms provider. Oyo’s dizzying rise and dealings with SoftBank echo the hype before the fall of Adam Neumann’s empire.
Unfit companies make flawed IPOs even worse 1 Oct 2019 VCs like Bill Gurley want startups to favor direct listings over traditional floats. IPO fees are too high and they are often priced too low, the critique goes. Maybe, but try telling that to WeWork and similar wannabes that, among other weaknesses, need massive cash injections.
Peloton’s tech claims depend on too much spin 28 Aug 2019 The stationary bike outfit calls itself a technology, media and software firm in its IPO prospectus. True, it burns lots of cash and gives founders supervoting rights. But Peloton needs to retain online customers in an exercise market prone to fads. That’s far from a sure bet.
Meituan Dianping gets better at multitasking 21 Aug 2019 The $50 bln delivery-to-ride-hailing giant’s takeaway unit is expected to post its first profitable quarter on Friday, as it gets better at juggling multiple businesses. It has scaled down a costly bike sharing venture, while a push into groceries and maps plays to its strengths.
U.S.-PRC tensions upend tech funding supply chain 4 Jun 2019 American venture capitalists pumped a record $19 bln into Chinese startups in 2018 while flows the other way reached a high of $3.6 bln. Tougher foreign-investment rules and rising nationalism are set to add friction to capital movement, creating new winners and losers.
Uber and Lyft create Asian valuation conundrum 30 May 2019 U.S. ride-hailing exuberance faded into lacklustre market debuts. At the same time, Singapore’s $14 bln Grab, for example, recently raised capital privately at 7 times expected revenue, compared to Uber’s 5 times. Fast-growing payment units can only justify some of the gap.
Super leaders don’t need supervoting shares 3 Apr 2019 Lyft is one of many growth companies with dual-class stock that entrenches its creators. But Steve Jobs dominated Apple without such wheezes. Elon Musk’s survival at Tesla isn’t just down to governance quirks. And Uber seems better off freed from the control of its architect.
Obsolescent Hong Kong lenders get a virtual kick 2 Apr 2019 City regulators have awarded three online-only banking licenses, hoping to shake up a lucrative $23 bln local market after years of underinvestment. Tough requirements mean two have gone to ventures backed by big names, not startups. That won't stop them tackling HSBC and others.
Airbnb’s Indian rooms alliance checks out 1 Apr 2019 The $31 bln home-sharing app is investing in no-frills lodging chain Oyo. Both are flourishing in the world’s two largest emerging markets, clipping at the heels of established operators. Joining forces will add zest to Airbnb’s mooted IPO, and gives its smaller peer a U.S. lift.
Meituan Dianping drives itself to distraction 12 Mar 2019 The $42 bln Chinese super-app operator grew fourth-quarter sales by a robust 89 pct. Meituan’s entire valuation is reflected in the strength of its food delivery unit against Alibaba-owned Ele.me. That raises fresh questions about costly ride-hailing and bike-sharing diversions.
Uber’s Indian takeout will feed future rivals 25 Feb 2019 The ride-hailing giant may swap its local food delivery business for a stake in $3.3 bln rival Swiggy. Checking out of Uber Eats's fastest-growing market will cut losses ahead of a global IPO. It would also prioritise short-term gain over efforts to keep new competitors at bay.
Review: Old news guard beats back the grim reaper 22 Feb 2019 Google and Facebook have nearly destroyed the media business – venerable institutions and digital upstarts alike. In “Merchants of Truth,” Jill Abramson effectively draws upon BuzzFeed, Vice, the Washington Post and the New York Times to show that subscribers are key to survival.
China’s big urban-zone idea lacks finer points 19 Feb 2019 Beijing unveiled a blueprint to link Hong Kong, Macau and mainland cities into a $1.5 trln economic powerhouse. The Greater Bay Area plan is packed with industrial-planning jargon. What’s missing is nitty-gritty on taxes, consumer banking and commuting, which will matter most.
Didi offers India’s hotel startup a lift in China 15 Feb 2019 No-frills chain Oyo is growing fast in a country where few foreign tech firms have thrived. An investment from local ride-hailing giant Didi Chuxing will help smooth the way for the $5 bln group. In return, the buyer gets a valuable ally in its duel with rival superapp Meituan.