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Equity Shot: Judging Uber’s less-than-grand opening day

Posted by on May 10, 2019 in alex wilhelm, carsharing, China, Commuting, Equity podcast, initial public offering, Kate Clark, Lyft, Postmates, Startups, TC, TechCrunch, transport, Uber, unicorn, United States, Venture Capital | 0 comments

Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast, where we unpack the numbers behind the headlines.

We are back, as promised. Kate Clark and Alex Wilhelm re-convened today to discuss the latest from the Uber IPO. Namely that it opened down, and then kept falling.

A few questions spring to mind. Why did Uber lose ground? Was it the company’s fault? Was it simply the macro market? Was it something else altogether? What we do know is that Uber’s pricing wasn’t what we were expecting and its first day was not smooth.

There are a whole bunch of reasons why Uber went out the way it did. Firstly, the stock market has had a rough week. That, coupled with rising U.S.-China tensions made this week one of the worst of the year for Uber’s monstrous IPO.

But, to make all that clear, we ran back through some history, recalled some key Lyft stats, and more.

We don’t know what’s next but we will be keeping a close watch, specifically on the next cohort of unicorn companies ready to IPO (Postmates, hi!).

Equity drops every Friday at 6:00 am PT, so subscribe to us on Apple PodcastsOvercast, Pocket Casts, Downcast and all the casts.


Source: The Tech Crunch

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A brief history of Uber’s bumpy road to an IPO

Posted by on May 10, 2019 in Alphabet, Anthony Levandowski, Arizona, California, carsharing, Colorado, Commuting, driver, Emil Michael, equal employment opportunity commission, executive, Federal Bureau of Investigation, Federal Trade Commission, Google, Lyft, pandodaily, Sarah Lacy, self-driving car, TC, transport, Travis Kalanick, Uber, Uber Startup, waymo | 0 comments

It’s been nine years since UberCab made its first appearance on the WordPress pages of this website. In the ensuing years, the startup has grown from an upstart looking to upend the taxi cab cartels, to a juggernaut that has its hands in every form of transportation and logistics service it can think of.

In the process, Uber has done some things that might give (and in fact has given) some shareholders pause.

From its first pitch deck to this historic public offering, TechCrunch has covered the über startup that has defined the post-financial-crisis era of consumer venture investing.

Here are some of the things that shouldn’t get swept into the dustbin of Uber’s history as the company makes its debut as a public company.

  • In 2014 Uber used a tool called “God View” to track the movements of passengers and shared those details publicly.At the time, the company was worth a cool $18.2 billion, and was already on the road to success (an almost pre-ordained journey given the company’s investors and capitalization), but even then, it could not get out of the way of its darker impulses.
  • A former executive of the company, Emil Michael, suggested that Uber should investigate journalists who were critical of the company and its business practices (including PandoDaily editor Sarah Lacy).
  • As it expanded internationally, Uber came under fire for lax hiring practices for its drivers. In India, the company was banned in New Delhi, after a convicted sex offender was arrested on suspicion of raping a female passenger.
  • Last year, the Equal Employment Opportunity Commission opened an investigation into the company for gender discrimination around hiring and salaries for women at the company. Uber’s problems with harassment were famously documented by former employee Susan Fowler in a blog post that helped spur a reckoning for the tech sector.
  • Uber has been forced to pay fines for its inability to keep passenger and driver information private. The company has agreed to 20 years of privacy audits and has paid a fine to settle a case that was opened by the Federal Trade Commission dating back to 2017.
  • While Uber was not found to be criminally liable in the death of an Arizona pedestrian that was struck and killed by a self-driving car from the company’s fleet, it remains the only company with an autonomous vehicle involved in the death of a pedestrian.
  • Beyond its problems with federal regulators, Uber has also had problems adhering to local laws. In Colorado, Uber was fined nearly $10 million for not adhering to the state’s requirements regarding background checks of its drivers.
  • Uber was also sued by other companies. Notably, it was involved in a lengthy and messy trade secret dispute with Alphabet’s onetime self-driving car unit, Waymo. That was for picking up former Waymo employee Anthony Levandowski and some know-how that the former Alphabet exec allegedly acquired improperly before heading out the door.
  • Uber even had dueling lawsuits going between and among its executives and major shareholders. When Travis Kalanick was ousted by the Uber board, the decision reverberated through its boardroom. As part of that battle for control, Benchmark, an early investor in Uber sued the company’s founder and former chief executive,  Travis Kalanick for fraud, breach of contract and breach of fiduciary duty.
  • Uber’s chief people officer, Liane Hornsey was forced to resign following a previously unreported investigation into her alleged systematic dismissals of racial discrimination complaints within Uber.
  • Lawsuits against the company not only dealt with its treatment of gender and race issues, but also for accessibility problems with the ride-hailing service. The company was sued for allegedly violating Title II of the Americans with Disabilities Act and the California Disabled Persons Act.
  • The ride-hailing service also isn’t free from legal woes in international markets. Earlier this year, the company paid around $3 million to settle charges that Uber had violated local laws by operating in the country illegally.
  • Finally, the company’s lax driver screening policies have led to multiple reports of assault by drivers of Uber passengers. Uber recently ended the policy of forcing those women to engage in mandatory arbitration proceedings to adjudicate those claims.
  • Not even the drivers who form the core of Uber’s service are happy with the company. On the eve of its public offering, a strike in cities across the country brought their complaints squarely in front of the company’s executive team right before the public offering, which was set to make them millions.


Source: The Tech Crunch

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Uber’s first day as a public company didn’t go so well

Posted by on May 10, 2019 in carsharing, Commuting, economy, Finance, Fundings & Exits, initial public offering, money, Transportation, Uber, Uber IPO, Venture Capital | 0 comments

Ouch. Yikes. Oof. Sigh.

Those are some of the friendlier phrases I imagine came out of the mouths of bankers, investors, executives and really anyone who has been paying close attention to Uber’s road to the stock markets today when the company debuted on the New York Stock Exchange below its initial public offering price.

The ride-hailing business (NYSE: UBER), previously valued at $72 billion by venture capitalists, priced its stock at $45 apiece for a valuation of $82.4 billion on Thursday. It began trading this morning at $42 apiece, only to close even lower at $41.57, or down 7.6% from its IPO price.

Still, the IPO was successful enough for Uber. The business now has $8.1 billion on its balance sheet to invest in growth and, ideally, transform into a profitable business.

Anyone who expected Uber to climb past $100 billion at its IPO is surely disappointed. And those who projected a valuation of some $120 billion, well, they’re probably feeling pretty dumb. Nonetheless, Uber’s new market cap makes its exit one of the most valuable in history, and represents a landmark event for tech, mobility and the gig economy at large.

Where the stock will go from here, who knows. Lyft, as we’ve observed, has taken quite a hit since it completed an IPO in March. The Uber competitor is currently trading at a higher price than Uber: $51 per share with a market cap of about $14.6 billion. Its stock has fallen all week long, however, after the company posted losses of more than $1 billion in the first quarter of 2019.


Source: The Tech Crunch

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Uber’s trading debut: who was (and wasn’t) at the opening bell

Posted by on May 10, 2019 in Apps, Automotive, carsharing, Dara Khosrowshahi, Exit, Expedia, Garrett Camp, Rachel Holt, Startups, thuan pham, Transportation, Travis Kalanick, Uber, Uber IPO, vmware | 0 comments

Uber finally made its debut Friday on the New York Stock Exchange, ending its decade-long journey from startup to publicly traded company.

So far, it’s been a ho-hum beginning, with shares opening at $42, down from the IPO price. The share price is hovering just under $44.

Thirteen people, including executives, early employees, drivers and customers, were on the balcony for the historic bell ringing that opened the markets Friday. Noticeable absentees were co-founder Garrett Camp and former CEO and co-founder Travis Kalanick, who was ousted from the company in June 2017 after a string of scandals around Uber’s business practices.

Kalanick, who still sits on the board and has an 8.6% stake in Uber, wasn’t part of the opening bell ceremony. However, Kalanick and Camp were both at the NYSE for the event.

Here is who participated in the opening bell ceremony.

The bell ringer

Austin Geidt, who rang the bell, was employee No. 4 when she started as an intern in 2010, and is one of Uber’s earliest employees.

Geidt joined Uber in 2010 and has since worked in numerous positions at the company. She led Uber’s expansion in hundreds of new cities and dozens of new countries. Geidt now heads up strategy for Uber’s Advanced Technologies Group, the unit working on autonomous vehicles.

Executives

CEO Dara Khosrowshahi stood next to Geidt at the opening of the market Friday. Khosrowshahi joined Uber in 2017 after Kalanick resigned and the board launched an extensive search for an executive who could change the culture at the company and prepare it for an eventual IPO.

Khosrowshahi was the CEO of Expedia before joining Uber. Khosrowshahi gave a one-year update on his time at Uber during TechCrunch Disrupt in September 2018.

Uber CTO Thuan Pham has been with the company since 2013. Prior to coming to Uber, Pham was vice president of engineering at VMware.

Rachel Holt, vice president and head of New Mobility, was also on hand. Holt has worked at Uber since October 2011, when the company was live in just three cities. In May 2016, she became VP and regional general manager of Uber’s operations in the U.S. and Canada.

She was promoted to head up new mobility in June 2018. She’s responsible for the ramp-up and onboarding of additional mobility services, including public transit integration, scooters, car rentals and bikes.

Rachel Holt (Getty Images)

Other executives included Pierre-Dimitry Gore-Coty and Andrew MacDonald, both vice presidents and regional general managers at Uber, as well as Jason Droege, a vice president who heads up Uber Eats.

Droege, who joined Uber in 2014, has the official title of head of UberEverything. This is the team that created the food delivery service Uber Eats, which now operates in 35 countries.

Drivers

Uber had five drivers on hand for the opening bell, who represented different services and geographies.

Among the drivers were:

  • Jerry Bruner, a Los Angeles-based driver who is a military veteran and former professional golfer. Bruner has completed more than 30,000 Uber trips.
  • Tiffany Hanna, a military veteran, is based out of Springfield, Missouri. Hanna is a truck driver who uses the Uber Freight carrier app. 
  • Jonelle Bain, a New York-based driver. Uber, which shared the bios of the drivers, said Bain is taking coding classes and plans to become a software engineer.
  • Onur Kerey is a driver based out of London. Kerey is deaf. According to his bio, “He doesn’t let his disability get in the way of his passion for driving or connecting with others.”
  • J. Alexander Palacio Sanchez is based in Australia and has been driving with Uber since 2015. His true passion is acting, according to Uber, and at the urging of his riders, he auditioned for the role of Kevin in “The Heights” — and landed it.

Customers

One customer, Elise Wu, also participated in the opening bell. Wu owns Kampai, a family of restaurants in France that serves affordable cuisine made available for delivery through Uber Eats.


Source: The Tech Crunch

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India’s Ola spins out a dedicated EV business — and it just raised $56M from investors

Posted by on Mar 1, 2019 in Ankit Jain, Asia, Automotive, Bhavish Aggarwal, carsharing, Co-founder, Collaborative Consumption, Companies, didi, Didi Chuxing, DST Global, electric vehicle, Flipkart, funding, Fundings & Exits, head, India, ola cabs, Sachin Bansal, Sequoia, Softbank, SoftBank Group, Steadview Capital, temasek, Tencent, tiger global, transport, Uber, United States | 0 comments

Ola, Uber’s key rival in India, is doubling down on electric vehicles after it span out a dedicated business, which has pulled in $56 million in early funding.

The unit is named Ola Electric Mobility and it is described as being an independent business that’s backed by Ola. TechCrunch understands Ola provided founding capital, and it has now been joined by a series of investors who have pumped Rs. 400 crore ($56 million) into Ola Electric. Notably, those backers include Tiger Global and Matrix India — two firms that were early investors in Ola itself.

While automotive companies and ride-hailing services in the U.S. are focused on bringing autonomous vehicles to the streets, India — like other parts of Asia — is more challenging thanks to diverse geographies, more sparse mapping and other factors. In India, companies have instead flocked to electric. The government had previously voiced its intention to make 30 percent of vehicles electric by 2030, but it has not formally introduced a policy to guide that initiative.

Ola has taken steps to electrify its fleet — it pledged last year to add 10,000 electric rickshaws to its fleet and has conducted other pilots with the goal of offering one million EVs by 2022 — but the challenge is such that it has spun out Ola Electric to go deeper into EVs.

That means that Ola Electric won’t just be concerned with vehicles, it has a far wider remit.

The new company has pledged to focus on areas that include charging solutions, EV batteries, and developing viable infrastructure that allows commercial EVs to operate at scale, according to an announcement. In other words, the challenge of developing electric vehicles goes beyond being a ‘ride-hailing problem’ and that is why Ola Electric has been formed and is being capitalized independently of Ola.

An electric rickshaw from Ola

Its leadership is also wholly separate.

Ola Electric is led by Ola executives Anand Shah and Ankit Jain — who led Ola’s connected car platform strategy — and the team includes former executives from carmakers such as BMW.

Already, it said it has partnered with “several” OEMs and battery makers and it “intends to work closely with the automotive industry to create seamless solutions for electric vehicle operations.” Indeed, that connected car play — Ola Play — likely already gives it warm leads to chase.

“At Ola Electric, our mission is to enable sustainable mobility for everyone. India can leapfrog problems of pollution and energy security by moving to electric mobility, create millions of new jobs and economic opportunity, and lead the world,” Ola CEO and co-founder Bhavish Aggarwal said in a statement.

“The first problem to solve in electric mobility is charging: users need a dependable, convenient, and affordable replacement for the petrol pump. By making electric easy for commercial vehicles that deliver a disproportionate share of kilometers traveled, we can jumpstart the electric vehicle revolution,” added Anand Shah, whose job title is listed as head of Ola Electric Mobility.

The new business spinout comes as Ola continues to raise new capital from investors.

Last month, Flipkart co-founder Sachin Bansal invested $92 million into the ongoing Series J round that is likely to exceed $1 billion and would value Ola at around $6 billion. Existing backer Steadview Capital earlier committed $75 million but there’s plenty more in development.

A filing — first noted by paper.vc — shows that India’s Competition Commission approved a request for a Temasek-affiliated investment vehicle’s proposed acquisition of seven percent of Ola. In addition, SoftBank offered a term sheet for a prospective $1 billion investment last month, TechCrunch understands from an industry source.

Ola is backed by the likes of SoftBank, Tencent, Sequoia India, Matrix, DST Global and Didi Chuxing. It has raised some $3.5 billion to date, according to data from Crunchbase.


Source: The Tech Crunch

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Go-Jek’s Get app officially launches in Thailand as Southeast Asia expansion continues

Posted by on Feb 28, 2019 in Asia, bangkok, carsharing, ceo, Collaborative Consumption, countries, Food, go-jek, grab, Indonesia, Philippines, Singapore, Softbank, Southeast Asia, Thailand, transport, Uber, vietnam | 0 comments

Go-Jek is extending its reach in Southeast Asia after its Thailand-based unit made its official launch, which included the addition of a new food delivery service.

Get, which is the name for Go-Jek business in Thailand, started out last year offering motorbike taxi on-demand services to a limited part of Thai capital city Bangkok, now the company said it has expanded the bikes across the city and added food and delivery options. Get’s management team is composed of former Uber staffers while CEO Pinya Nittayakasetwat was recruited from chat app Line’s food delivery business.

Over the last two months, Get claims to have completed two million trips in the past two months. There’s no word on when Get will add four-wheeled transport options, however. On the food side, Get is claiming to have 20,000 merchants on its platform but there are some issues. Rumming through the app, I found a number of listed restaurants that didn’t include menus. In those instances, customers have to input their dish and price which makes it pretty hard to use.

Go-Jek’s Get app in Thailand doesn’t include menus for a number of restaurants, making it nearly impossible to order

Grab is the dominant player in Thailand, where it offers taxis, private cars, motorbikes, delivery and food across eight markets in Southeast Asia. Go-Jek rose to success in its native Indonesia, where it began offering motorbikes on demand but has expanded to cover taxi, cars, food, general services on-demand and fintech. Its investors include Google, Tencent, Meituan and Sequoia India.

That’s the same playbook Grab is using, but Go-Jek is taking its time with its market expansions. Thailand represents its third new market beyond Indonesia, following launches in Vietnam and Singapore. The Philippines is another market where Go-Jek has voiced a desire to be present — it has even made an acquisition there — but regulatory issues are holding up a launch.

Regional expansion doesn’t come cheap and Go-Jek is in the midst of raising $2 billion to finance these moves. It recently closed $1 billion from existing investors, and Deal Street Asia reports that it could raise as much as $3 billion for the entire Series F round. That’s likely in response to Grab’s own fundraising plans. The Singapore-based company closed $2 billion last year, but it is looking to increase that total to $5 billion with a major injection from SoftBank’s Vision Fund a key piece of that puzzle.


Source: The Tech Crunch

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China’s Didi is laying off 15% of its staff

Posted by on Feb 15, 2019 in Asia, carsharing, China, didi, driver, transport, Transportation | 0 comments

China’s largest ride-hailing firm Didi plans to let go 15 percent of its employees or about 2,000 people this year, sources told TechCrunch. The cut comes as the beleagured transportation giant copes with a stricter regulatory environment that puts a squeeze on driver supply and backlash from two high-profile passenger murders last year.

Chief executive Cheng Wei made the announcement during an internal meeting Friday morning as he told management that Didi will scale back its non-core businesses and step up investments in key areas, including safety technology, product engineering, offline driver management and international operations.

The sources did not specify which of Didi’s business units are affected by the layoff but said Didi will add 2,500 new hires by the end of the year to work on company priorities, which will give the company a total headcount of about 13,000 staff around the world.

In addition, Didi will work to ramp up operational efficiency, an issue that Didi also addressed during a major re-organization in December. A Didi spokesperson declined to comment.

Earlier this week, Chinese tech news portal 36Kr reported that Didi lost $1.6 billion in 2018 and spent $1.67 billion on subsidies for drivers. According to an internal memo Cheng made in September, Didi lost 4 billion yuan ($590 million) in the first half of 2018 and the company had not been profitable for six years.

Read more:


Source: The Tech Crunch

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Transportation Weekly: Amazon’s secret acquisition and all the AV feels

Posted by on Feb 8, 2019 in Amazon, Anthony Levandowski, Argo AI, aurora, Automotive, carsharing, Chris Urmson, Craft Ventures, Daimler, david sacks, Elon Musk, Google, Kirsten Korosec, Lead Edge Capital, Maxwell Technologies, Megan Rose Dickey, mike volpi, myTaxi, self driving cars, Sequoia, starship technologies, t.rowe price, TC, TechCrunch, Tesla, Transportation, Tusk Ventures, Uber, valor equity partners, waymo | 0 comments

Welcome to Transportation Weekly; I’m your host Kirsten Korosec, senior transportation reporter at TechCrunch. I cover all the ways people and goods move from Point A to Point B — today and in the future — whether it’s by bike, bus, scooter, car, train, truck, robotaxi or rocket. Sure, let’s include hyperloop and eVTOLs, or air taxis, too.

Yup, another transportation newsletter. But I promise this one will be different. Here’s how.

Newsletters can be great mediums for curated news — a place that rounds up all the important articles a reader might have missed in any given week. We want to do a bit more.

We’re doubling down on the analysis and adding a heaping scoop of original reporting and well, scoops. You can expect Q&As with the most interesting people in transportation, insider tips, and data from that white paper you didn’t have time to read. This isn’t a lone effort either. TechCrunch senior reporter Megan Rose Dickey, who has been writing about micro mobility since before the scooter boom times of 2017, will be weighing in each week in our “Tiny But Mighty Mobility” section below. Follow her @meganrosedickey.

Consider this a soft launch. There might be content you like or something you hate. Feel free to reach out to me at kirsten.korosec@techcrunch.com to share those thoughts, opinions, or tips.

Eventually, we’ll have a way for readers to sign up and have Transportation Weekly delivered each week via email. For now, follow me on Twitter @kirstenkorosec to ensure you see it each week.

Now, let’s get to the good stuff.


ONM …

There are OEMs in the automotive world. And here, (wait for it) there are ONMs — original news manufacturers.


This is where investigative reporting, enterprise pieces and analysis on transportation will live.

We promised scoops in Transportation Weekly and here is one. If you don’t know journalist Mark Harris, you should. He’s an intrepid gumshoeing reporter who TechCrunch has been lucky enough to hire as a freelancer. Follow him @meharris.

Amazon quietly acquired robotics company Dispatch to build Scout

dispatch-amazon-scout
Remember way back in January when Amazon introduced Scout, their autonomous delivery bot? There was speculation at the time that Amazon had bought the Estonian-based company Starship Technologies. Harris did some investigating and discovered some of the intellectual property and technology behind Scout likely came from a small San Francisco startup called Dispatch that Amazon stealthily acquired in 2017.

It’s time to stop thinking about Amazon as just an e-commerce company. It’s a gigantic logistics company, probably the biggest on the planet, with a keen interest — and the cash to pursue those interests — in automation. Think beyond Scout. In fact, wander on down this post to the deal of the week.


Dig In

Each week, transportation weekly will spend a little extra time on an approach, policy, tech or the people behind it in our ‘Dig In” section. We’ll run the occasional column here, too.

This week features a conversation with Dmitri Dolgov, the CTO and VP of engineering at Waymo, the former Google self-driving project that spun out to become a business under Alphabet.

waymo-google-10-years

Ten years ago, right around now, about a dozen engineers started working on Project Chauffeur, which would turn into the Google self-driving project and eventually become an official company called Waymo. Along the way, the project would give rise to a number of high-profile engineers who would go on to create their own companies. It’s a list that includes Aurora co-founder Chris Urmson, Argo AI co-founder Bryan Salesky and Anthony Levandowski, who helped launch Otto and more recently Pronto.ai.

What might be less known is that many of those in the original dozen are still at Waymo, including Dolgov, Andrew Chatham, Dirk Haehnel, Nathaniel Fairfield and Mike Montemerlo.

Dolgov and I talked about the early days, challenges and what’s next. A couple of things that stood out during our chat.

There is a huge difference between having a prototype that can do something once or twice or four times versus building a product that people can start using in their daily lives. And it is, especially in this field, very easy to make progress on these kinds of one-off challenges.

Dolgov’s take on how engineers viewed the potential of the project 10 years ago …

I also use our cars every day to get around, this is how I got to work today. This is how I run errands around here in Mountain View and Palo Alto.


A little bird …

We hear a lot. But we’re not selfish. Let’s share.
blinky-cat-birdAn early investor, or investors, in Bird appear to be selling some of their shares in the scooter company, per a tip backed up by data over at secondary trading platform EquityZen. That’s not crazy considering the company is valued at $2 billion-ish. Seed investors should take some money off the table once a company reaches that valuation.

We’ve heard that David Sacks at Craft Ventures hasn’t sold a single Bird share. We hear Tusk Ventures hasn’t sold, either. That leaves a few others, including Goldcrest Capital, which was the lone seed investor, and then Series A participants Lead Edge Capital, M13, and Valor Equity Partners.

Got a tip or overheard something in the world of transportation? Email me or send a direct message to @kirstenkorosec.

While you’re over at Twitter, check out this cheeky account @SDElevator. We can’t guarantee how much of the content is actually “overheard” and how much is manufactured for the laughs, but it’s a fun account to peruse from time to time.

Another new entrant to the mobility parody genre is @HeardinMobilty.


Deal of the week

There’s so much to choose from this week, but Aurora’s more than $530 million Series B funding round announced Thursday morning is the winner.

The upshot? It’s not just that Aurora is now valued at more than $2.5 billion. The primary investors in the round — Sequoia as lead and “significant” investments from Amazon and T. Rowe Price — suggests Aurora’s full self-driving stack is headed for other uses beyond shuttling people around in autonomous vehicles. Perhaps delivery is next.

And believe it or not, the type of investor in this round tells me that we can expect another capital raise. Yes, Aurora has lots of runway now as well as three publicly named customers. But investors like Sequoia, which led the round and whose partner Carl Eschenbach is joining Aurora’s board, T. Rowe Price and Amazon along with repeaters like Index Ventures (general partner Mike Volpi is also on the board) have patience, access to cash and long-term strategic thinking. Expect more from them.

Other deals that got our attention this week:


Snapshot

Speaking of deals and Tesla … the automaker’s $218 million acquisition this month of Maxwell Technologies got me thinking about companies it has targeted in the past.

So, we went ahead and built a handy chart to provide a snapshot view of some of Tesla’s noteworthy acquisitions. tesla-acquisitions-chart1

One note: Tesla CEO Elon Musk tweeted in 2018 that the company had acquired trucking carrier companies to help improve its delivery logistics. We’ve dug in and have yet to land on the company, or companies, Tesla acquired.

The deals that got away are just as interesting. That list includes a reported $325 million offer to buy Simbol Materials, the startup that was extracting small amounts of lithium near the Salton Sea east of San Diego.


Tiny but mighty mobility

Between Lime’s $310 million Series D round and the seemingly never-ending battle to operate electric scooters in San Francisco, it’s clear that micro mobility is not so micro.

Lime, a shared electric scooter and bikeshare startup, has now raised north of $800 million in total funding, surpassing key competitor Bird’s total funding of $415 million. Thanks to this week’s round of funding, Lime’s micromobility business is now worth $2.4 billion.

Lime currently operates its bikes and scooters in more than 100 cities worldwide. Over in San Francisco, however, Lime has yet to deploy any of its modes of transportation. Since last March, there’s been an ongoing battle among scooter operators to deploy their services in the city. The city ultimately selected Skip and Scoot for the pilot programs, leaving the likes of Lime, Uber’s JUMP and Spin to appeal the decision.

A neutral hearing officer has since determined SF’s process for determining scooter operators was fair, but the silver lining for the likes of JUMP, Spin and most likely, Lime, is that the city may open up its pilot program to allow additional operators beginning in April.


Notable reads

Two recent studies got my attention.

The first is from Bike Pittsburgh, an advocacy group and partner of Uber, that published the findings from its latest AV survey based on responses from local residents. The last time they conducted a similar survey was in 2017.

The takeaway: people there, who are among the most exposed to autonomous vehicles due to all the AV testing on public roads, are getting used to it. A bit more than 48 percent of respondents said they approve of public AV testing in Pittsburgh, down slightly from 49 percent approval rating in 2017. 

  • 21.21% somewhat approve
  • 11.62% neutral
  • 10.73% somewhat disapprove
  • 8.73% disapprove

One standout result was surrounding responses about the fatal accident in Tempe, Arizona involving a self-driving Uber that struck and killed pedestrian Elaine Herzberg in March 2018. Survey participants were asked “As a pedestrian or a bicyclist how did this change event and it’s outcome change your opinion about sharing the road with AVs?”

Some 60 percent of respondents claimed no change in their opinion, with another 37 percent claiming that it negatively changed their opinion. Nearly 3 percent claimed their opinion changed positively toward the technology.

Bike Pittsburgh noted that the survey elicited passionate open-ended responses. 

“The incident did not turn too many people off of AV technology in general,” according to Bike Pittsburgh. “Rather it did lead to a growing distrust of the companies themselves, specifically with Uber and how they handled the fatality.”

The other study, Securing the Modern Vehicle: A Study of Automotive Industry Cybersecurity Practices, was released by Synopsys, Inc.and SAE International.

The results, based on a survey of global automotive manufacturers and suppliers conducted by Ponemon Institute, doesn’t assuage my concerns. If anything, it puts me on alert.

  • 84% of automotive professionals have concerns that their organizations’ cybersecurity practices are not keeping pace with evolving technologies
  • 30% of organizations don’t have an established cybersecurity program or team
  • 63% test less than half of the automotive technology they develop for security vulnerabilities.

Testing and deployments

Pilots, pilots everywhere. A couple of interesting mobility pilots and deployments stand out.

Optimus Ride, the Boston-based MIT spinoff, has made a deal with Brookfield Properties to provide rides in its small self-driving vehicles at Halley Rise – a new $1.4 billion mixed-use development in Virginia. 

This is an example of where we see self-driving vehicles headed — for now. Small deployments that are narrowly focused in geography with a predictable customer base are the emerging trend of 2019. Expect more of them.

And there’s a reason why, these are the kinds of pilots that will deliver the data needed to improve their technology, as well as test out business models —gotta figure out how to money with AVs eventually — hone in fleet operational efficiency, placate existing investors while attracting new ones, and recruit talent.

Another deployment in the more conventional ride-hailing side of mobility is with Beat, the startup that has focused its efforts on Latin America.

Beat was founded by Nikos Drandakis in 2011 initially as Taxibeat. The startup acquired by Daimler’s mytaxi in February 2017 and Drandakis still runs the show. The company was focused on Europe but shifted to Latin America, and it’s made all the difference. (Beat is still available in Athens, Greece.) Beat has launched in Lima, Peru, Santiago, Chile and Bogota, Colombia and now boasts 200,000 registered drivers. 

Now it’s moving into Mexico, where more competitors exist. The company just started registering and screening drivers in Mexico City as it prepares to offer rides for passengers this month. 

TechCrunch spoke at length with Drandakis. Look out for a deeper dive soon.

Until next week, nos vemos.


Source: The Tech Crunch

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First China, now Starbucks gets an ambitious VC-funded rival in Indonesia

Posted by on Feb 1, 2019 in alibaba, alibaba group, android, Apps, army, Asia, carsharing, China, Companies, East Ventures, economy, funding, Fundings & Exits, go-jek, Google, grab, Indonesia, Insignia Ventures Partners, internet access, Jakarta, JD.com, managing partner, mcdonalds, online food ordering, online marketplaces, Pizza Hut, Singapore, Southeast Asia, starbucks, temasek, Tencent, United States, WeWork | 0 comments

Asia’s venture capital-backed startups are gunning for Starbucks .

In China, the U.S. coffee giant is being pushed by Luckin Coffee, a $2.2 billion challenger surfing China’s on-demand wave, and on the real estate side, where WeWork China has just unveiled an on-demand product that could tempt people who go to Starbucks to kill time or work.

That trend is picking up in Indonesia, the world’s fourth largest country and Southeast Asia’s largest economy, where an on-demand challenger named Fore Coffee has fuelled up for a fight after it raised $8.5 million.

Fore was started in August 2018 when associates at East Ventures, a prolific early-stage investor in Indonesia, decided to test how robust the country’s new digital infrastructure can be. That means it taps into unicorn companies like Grab, Go-Jek and Traveloka and their army of scooter-based delivery people to get a hot brew out to customers. Incidentally, the name ‘Fore’ comes from ‘forest’ — “we aim to grow fast, strong, tall and bring life to our surrounding” — rather than in front of… or a shout heard on the golf course.

The company has adopted a similar hybrid approach to Luckin, and Starbucks thanks to its alliance with Alibaba. Fore operates 15 outlets in Jakarta, which range from ‘grab and go’ kiosks for workers in a hurry, to shops with space to sit and delivery-only locations, Fore co-founder Elisa Suteja told TechCrunch. On the digital side, it offers its own app (delivery is handled via Go-Jek’s Go-Send service) and is available via Go-Jek and Grab’s apps.

So far, Fore has jumped to 100,000 deliveries per month and its app is top of the F&B category for iOS and Android in Indonesia — ahead of Starbucks, McDonald’s and Pizza Hut .

It’s early times for the venture — which is not a touch on Starbuck’s $85 billion business; it does break out figures for Indonesia — but it is a sign of where consumption is moving to Indonesia, which has become a coveted beachhead for global companies, and especially Chinese, moving into Southeast Asia. Chinese trio Tencent, Alibaba and JD.com and Singapore’s Grab are among the outsiders who have each spent hundreds of millions to build or invest in services that tap growing internet access among Indonesia’s population of over 260 million.

There’s a lot at stake. A recent Google-Temasek report forecast that Indonesia alone will account for over 40 percent of Southeast Asia’s digital economy by 2025, which is predicted to triple to reach $240 billion.

As one founder recently told TechCrunch anonymously: “There is no such thing as winning Southeast Asia but losing Indonesia. The number one priority for any Southeast Asian business must be to win Indonesia.”

Forecasts from a recent Google-Temasek report suggest that Indonesia is the key market in Southeast Asia

This new money comes from East Ventures — which incubated the project — SMDV, Pavilion Capital, Agaeti Venture Capital and Insignia Ventures Partners with participation from undisclosed angel backers. The plan is to continue to invest in growing the business.

“Fore is our model for ‘super-SME’ — SME done right in leveraging technology and digital ecosystem,” Willson Cuaca, a managing partner at East Ventures, said in a statement.

There’s clearly a long way to go before Fore reaches the size of Luckin, which has said it lost 850 million yuan, or $124 million, inside the first nine months in 2018.

The Chinese coffee challenger recently declared that money is no object for its strategy to dethrone Starbucks. The U.S. firm is currently the largest player in China’s coffee market, with 3,300 stores as of last May and a goal of topping 6,000 outlets by 2022, but Luckin said it will more than double its locations to more than 4,500 by the end of this year.

By comparison, Indonesia’s coffee battle is only just getting started.


Source: The Tech Crunch

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Go-Jek makes first close of Series F round at $9.5B valuation

Posted by on Feb 1, 2019 in Asia, carsharing, Collaborative Consumption, Companies, financial services, food delivery, funding, Fundings & Exits, go-jek, Google, grab, Indonesia, JD.com, online food ordering, Philippines, series f, Singapore, Southeast Asia, Tencent, Thailand, transport, Uber, vietnam | 0 comments

Go-Jek, the Indonesia-based ride-hailing company that is challenging Grab in Southeast Asia, has announced the first close of its Series F round, as TechCrunch reported last week. The company isn’t revealing numbers. Sources told us last week that it has closed around $920 million, but we understand that today that the round is at over $1 billion. Go-Jek is planning to raise $2 billion for the round, as reported last year.

Go-Jek said that the first close is led by existing backers Google, JD.com, and Tencent, with participation from Mitsubishi Corporation and Provident Capital. It didn’t provide a valuation but sources told us that week that it is around $9.5 billion.

Starting out with motorbike taxis in 2015, Go-Jek has since expanded to taxis, private car and more. The company said it plans to spend the money deepening its business in Indonesia, its home market, and growing its presence in new market expansions Vietnam, Singapore and Thailand. It is also working to enter the Philippines, where it had a request for an operating license rejected although it did complete a local acquisition after buying fintech startup Coins.ph.

The Go-Jek business in Indonesia includes transportation, food delivery, services on demand, payments and financial services. That’s very much the blueprint for its expansion markets, all of which are in different stages. Go-Viet, its Vietnamese service, offers food delivery and motorbike taxis, Get in Thailand operates motorbike taxis and in Singapore Go-Jek provides four-wheeled car options.

Combined those efforts cover 204 cities, two million drivers and 400,000 merchants, the company said, but the majority of that is in Indonesia.

Grab, meanwhile, became the top dog after buying Uber’s local business, and it operates in eight countries. It recently crossed three billion rides to date and claims 130 million downloads. Grab said revenue for 2018 was $1 billion, it expects that to double this year. It has raised $6.8 billion from investors, according to Crunchbase, and its current Series H round could reach $5 billion.

Go-Jek claims it has 130 million downloads — despite just being in three markets — while it said it reached an annualized transaction volume of two billion in 2018 and $6.7 billion in annualized GMV. Those figures require some explaining as Go-Jek is being a little creative with its efforts to compete with Grab on paper.

Transactions don’t mean revenue — a transaction could be a $1 motorbike ride or a payment via QR code — and GMV is not revenue either, while both are ‘annualized’ which means they are scaled up after measuring a short period. In other words, don’t take these figures too literally, they aren’t comparable to Grab.


Source: The Tech Crunch

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