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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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Airbnb, Automattic and Pinterest top rank of most acquisitive unicorns

Posted by on Feb 23, 2019 in Aileen Lee, Airbnb, Automattic, blockspring, coinbase, Column, Commuting, cowboy ventures, CrunchBase, Docker, flatiron school, Italy, Lyft, M&A, neologisms, Neutrino, Pinterest, Sprinklr, Startups, SurveyMonkey, TC, transport, Uber, unicorn, unity-technologies, Venture Capital, vox media, WeWork | 0 comments

It takes a lot more than a good idea and the right timing to build a billion-dollar company. Talent, focus, operational effectiveness and a healthy dose of luck are all components of a successful tech startup. Many of the most successful (or, at least, highest-valued) tech unicorns today didn’t get there alone.

Mergers and acquisitions (M&A) can be a major growth vector for rapidly scaling, highly valued technology companies. It’s a topic that we’ve covered off and on since the very first post on Crunchbase News in March 2017. Nearly two years later, we wanted to revisit that first post because things move quickly, and there is a new crop of companies in the unicorn spotlight these days. Which ones are the most active in the M&A market these days?

The most acquisitive U.S. unicorns today

Before displaying the U.S. unicorns with the most acquisitions to date, we first have to answer the question, “What is a unicorn?” The term is generally applied to venture-backed technology companies that have earned a valuation of $1 billion or more. Crunchbase tracks these companies in its Unicorns hub. The original definition of the term, first applied in a VC setting by Aileen Lee of Cowboy Ventures back in late 2011, specifies that unicorns were founded in or after 2003, following the first tech bubble. That’s the working definition we’ll be using here.

In the chart below, we display the number of known acquisitions made by U.S.-based unicorns that haven’t gone public or gotten acquired (yet). Keep in mind this is based on a snapshot of Crunchbase data, so the numbers and ranking may have changed by the time you read this. To maintain legibility and a reasonable size, we cut off the chart at companies that made seven or more acquisitions.

As one would expect, these rankings are somewhat different from the one we did two years ago. Several companies counted back in early March 2017 have since graduated to public markets or have been acquired.

Who’s gone?

Dropbox, which had acquired 23 companies at the time of our last analysis, went public weeks later and has since acquired two more companies (HelloSign for $230 million in late January 2019 and Verst for an undisclosed sum in November 2017) since doing so. SurveyMonkey, which went public in September 2018, made six known acquisitions before making its exit via IPO.

Who stayed?

Which companies are still in the top ranks? Travel accommodations marketplace giant Airbnb jumped from number four to claim Dropbox’s vacancy as the most acquisitive private U.S. unicorn in the market. Airbnb made six more acquisitions since March 2017, most recently Danish event space and meeting venue marketplace Gaest.com. The still-pending deal was announced in January 2019.

WordPress developer and hosting company Automattic is still ranked number two. Automattic <a href=”https://www.crunchbase.com/acquisition/automattic-acquires-atavist–912abccd”>acquired one more company — digital publication platform Atavist — since we last profiled unicorn M&A. Open-source software containerization company Docker, photo-sharing and search site Pinterest, enterprise social media management company Sprinklr and venture-backed media company Vox Media remain, as well.

Who’s new?

There are some notable newcomers in these rankings. We’ll focus on the most notable three: The We CompanyCoinbase and Lyft. (Honorable mention goes to Stripe and Unity Technologies, which are also new to this list.)

The We Company (the holding entity for WeWork) has made 10 acquisitions over the past two years. Earlier this month, The We Company bought Euclid, a company that analyzes physical space utilization and tracks visitors using Wi-Fi fingerprinting. Other buyouts include Meetup (a story broken by Crunchbase News in November 2017) reportedly for $200 million. Also in late 2017, The We Company acquired coding and design training program Flatiron School, giving the company a permanent tenant in some of its commercial spaces.

In its bid to solidify its position as the dominant consumer cryptocurrency player, Coinbase has been on quite the M&A tear lately. The company recently announced its plans to acquire Neutrino, a blockchain analytics and intelligence platform company based in Italy. As we covered, Coinbase likely made the deal to improve its compliance efforts. In January, Coinbase acquired data analysis company Blockspring, also for an undisclosed sum. The crypto company’s other most notable deal to date was its April 2018 buyout of the bitcoin mining hardware turned cryptocurrency micro-transaction platform Earn.com, which Coinbase acquired for $120 million.

And finally, there’s Lyft, the more exclusively U.S.-focused ride-hailing and transportation service company. Lyft has made 10 known acquisitions since it was founded in 2012. Its latest M&A deal was urban bike service Motivate, which Lyft acquired in June 2018. Lyft’s principal rival, Uber, has acquired six companies at the time of writing. Uber bought a bike company of its own, JUMP Bikes, at a price of $200 million, a couple of months prior to Lyft’s Motivate purchase. Here too, the Lyft-Uber rivalry manifests in structural sameness. Fierce competition drove Uber and Lyft to raise money in lock-step with one another, and drove M&A strategy as well.

What to take away

With long-term business success, it’s often a chicken-and-egg question. Is a company successful because of the startups it bought along the way? Or did it buy companies because it was successful and had an opening to expand? Oftentimes, it’s a little of both.

The unicorn companies that dominate the private funding landscape today (if not in the number of deals, then in dollar volume for sure) continue to raise money in the name of growth. Growth can come the old-fashioned way, by establishing a market position and expanding it. Or, in the name of rapid scaling and ostensibly maximizing investor returns, M&A provides a lateral route into new markets or a way to further entrench the status quo. We’ll see how that strategy pays off when these companies eventually find the exit door .


Source: The Tech Crunch

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Southeast Asia’s Grab is adding Netflix-like video streaming to its ride-hailing app

Posted by on Jan 29, 2019 in Apps, Asia, carsharing, Collaborative Consumption, Commuting, Facebook, go-jek, Google, grab, hooq, India, Indonesia, Media, Netflix, on-demand services, Singapore, singtel, sony pictures, Southeast Asia, transport, Uber | 0 comments

Grab is Southeast Asia’s top ride-hailing firm thanks to its acquisition of Uber’s local business last year. Its biggest competitor gone, the company is on a push to go beyond transport and become an everyday ‘super app’ and that strategy just embraced video streaming today.

That’s because Grab is integrating video-on-demand service HOOQ — a local equivalent to Netflix — into its core ride-hailing app. The company, which is valued at $11 billion and raising a $5 billion round, already offers a range of services including food deliveries, payments, grocery delivery, travel deals and more. But, beyond utility, the focus is now shifting to entertainment, a category where Grab’s app currently sports only basic games.

Grab’s focus on these additional non-transportation services is designed to retain the attention of users and keep them engaged with its app even when they don’t need a ride. In that spirit, Grab announced a partnership platform last summer that’s aimed at helping companies in adjacent industries where it sees a fit to be integrated into its app. The benefit is potential access to Grab’s 130 million registered users which, aside from Western services like Facebook and Google, represents one of the largest digital platforms in Southeast Asia, where Grab is present in eight countries.

The rollout of HOOQ began earlier this month with Singapore and Indonesia, Southeast Asia’s largest economy and the world’s fourth most populous country, the focus initially.

“Singapore and Indonesia will be the first launch markets for this partnership, with a “Video” tile in the Grab app going live by the end of the first quarter. Philippines and Thailand will follow. Grab users will be offered a three-month access [pass] to HOOQ’s wide range of Hollywood and Asian titles, which can be played directly from the Grab app,” Grab said in a statement.

The companies didn’t disclose financial details, but HOOQ CEO Peter Bithos suggested Grab would receive a cut of revenue generated by subscription sign-ups generated by its app.

Leaning on Grab’s presence is certainly the appeal for HOOQ, which was started in 2015 by Singapore telco Singtel, Sony Pictures and Warner Brothers. Initially, a play to out-localize Netflix in Southeast Asia, HOOQ has recast its position somewhat in recent times — that’s included a free, advertising-supported tier launched last year and content deals with other on-demand services, including Hotstar in India.

Bithos, the HOOQ CEO, told TechCrunch that he believes Grab can support its growth and pivot from a cheaper but all-subscriber Netflix challenger to a freemium service that requires scale.

“Our strategy is around finding digital partners where we are complementary,” he explained in an interview. “We are building our tech and partnerships so that customers can easily bump into us without having to download an app or sign up to a different service.”

The HOOQ presence in Grab will include its full content library, Bithos confirmed.

“The deal is part of a much broader strategy for us,” he added. “We’re inverting the customer experience and putting HOOQ into other people’s products.”

Video in ride-hailing apps may sound unique but Go-Jek, Grab’s arch-rival headquartered in Indonesia, last year waded into video content, both through partnerships and its own productions. Even Uber has flirted with “in-ride content” to engage users, but it hasn’t delved into video yet.

With Go-Jek making the leap, it figures that Grab has followed with its own solution. Bithos said he is confident that the HOOQ-Grab tie-in is superior.

“Go-Jek hasn’t been able to get to anything like the scale or reach that we’ve got,” he said.

He suggested that the partnership allows Grab to focus on what it does best — rides — rather than other areas; that’s a concern that some sections of Grab’s user base have raised with its foray into other services.

“They don’t have to build video tech or focus on it,” he explained.


Source: The Tech Crunch

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Ola, Uber’s India rival, invests $100M in scooter rental startup Vogo

Posted by on Dec 18, 2018 in android, Asia, bangalore, Bhavish Aggarwal, Commuting, funding, Fundings & Exits, Hyderabad, India, Matrix Partners, ofo, Ola, Scooter, transport, Uber | 0 comments

We’re familiar with Uber cozying up to scooter startups — it has bought one and invested in another — but over in India, the U.S. firm’s key rival is hatching a major alliance of its own it invested $100 million in scooter rental startup Vogo.

Ola first invested back in August when Vogo raised an undisclosed Series A round from Ola, Matrix Partners and other investors, but now Ola is doubling down with this follow-on deal. It isn’t saying how much equity it has captured with this investment, nor the valuation that it gives Vogo but you can well imagine it is high for a company that has only just done its Series A.

As you’d expect, this is a strategic investment and it’ll mean that Vogo scooters will appear within the Ola app, from where they can be booked by the company’s 150 million registered users, “soon.” Bangalore and Hyderabad are the two cities where Vogo operates, but you’d imagine that it will lean on Ola to expand into other parts of tier-one India where Ola already has a strong presence.

Ola’s money is going directly into supply, with Vogo planning to buy 100,000 more scooters for its platform. The company’s scooters, for those who don’t know them, are unlocked using a one-time password generated from the company’s Android app. Scooters are either dropped off at a designated station, or the rider specifies that they are taking a round trip and then returns it to the station where they started.

Ola CEO and co-founder Bhavish Aggarwal — pictured in the top image alongside Vogo CEO and founder Anand Ayyadurai — said he hopes that the deal and integration will improve last-mile transportation options across India.

A selection of screen captures from the Vogo Android app

“Our investment in Vogo will help build a smart multi-modal network for first-last mile connectivity in the country. Vogo’s automated scooter-sharing platform, backed by Ola’s expertise in this space can help transform our cities. Together, we are thrilled to be at the forefront of India’s rapidly growing micro-mobility market,” he said in a prepared statement.

Ola previously invested in its own bike rental service last year, although that category has struggled in India as Chinese imports like Ofo have fled the country after struggling to develop a sustainable business in the country, and others outside of China. Ola and also Uber have offered motorbike taxis in India since 2016, but scooters offer a more individual approach.

Uber, for its part, doesn’t offer scooters in India at this point. But with India its second-largest market — it has reportedly crossed $1.6 billion in annualized bookings — you’d imagine that it is near the top of the company’s thoughts… although there is the business of that upcoming U.S. IPO to deal with.


Source: The Tech Crunch

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For 80,000 Commuters, One Nemesis: A 108-Year-Old Bridge

Posted by on Dec 11, 2018 in Amtrak, Bridges and Tunnels, Commuting, Hackensack River (NJ), New Jersey, New Jersey Transit, New York City, Portal Bridge, Transit Systems, United States Coast Guard | 0 comments

Amtrak wants to keep the Portal Bridge in New Jersey closed through the rush hours because it gets stuck so often after swinging open to let boats pass.
Source: New York Times

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For Many N.J. Transit Commuters, Last Year’s ‘Summer of Hell’ Is Now

Posted by on Aug 3, 2018 in Commuting, Murphy, Philip D (1957- ), New Jersey, New Jersey Transit, Port Authority Trans-Hudson (PATH), Transit Systems | 0 comments

A rash of train cancellations by New Jersey Transit, coupled with PATH delays, has added up to a season of aggravation for New Jersey commuters.
Source: New York Times

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Spanish ‘anti-Uber’ taxi strike ends after government agrees new regulation

Posted by on Aug 2, 2018 in Apps, barcelona, Cabify, carsharing, Commuting, e-bikes, Europe, Government, madrid, Spain, strike, transport, Transportation, Uber, VTC | 1 comment

A national six-day taxi driver strike in Spain has ended after the government agreed to pass regulation that will allow the country’s autonomous communities to cap the number of private hire vehicle permits within their cities.

The VTC licenses are used by Uber and local ride-hailing rival Cabify to offer professional driver services in the country. So the government’s decision looks likely to limit the size of their businesses in regional markets which choose to uphold the cap.

Previous decisions by European courts have essentially closed down Uber’s p2p (non-professional driver) ride-hailing services in the region. So lobbying cities to deregulate and reform taxi laws in its favor is Uber’s game now.

But it’s a long game, and one that may not work in every market — underlining the drivers behind the company repositioning itself as a multimodal transport platform, after buying its way into e-bikes.

Spain’s Development Ministry issued the news the taxi industry had been pressing for yesterday, in a press release, following a meeting of the National Transport Conference that had been forward as a result of the strikes. It said measures to enable the country’s regional governments to regulate the VTC sector locally, allowing them to put in place their own urban mobility policies, will be implemented in September.

Taxi associations have parked their strike as a result — albeit, making it loud and clear on Twitter that they’ll be returning to keep up the pressure on legislators come September.

It was an attempt by the mayor of Barcelona to pass a law to locally enforce the 1:30 ratio — subsequently blocked by the courts — that triggered the latest strike.

A strike that — as Uber hyperbolically tells it — “paralyzed Spain”.

Of course the reality was rather closer to an inconvenience, and mostly for tourists, given the country has multiple, typically low cost urban public transport options. And locals love to scoot.

Spain’s taxi associations have been holding fierce strike protests for several years, ever since Uber re-entered the market with a licensed service offering — after some of same associations had successfully challenged its p2p service in the Barcelona courts and got UberPop banned.

Taxi drivers denounce Uber and another local ride-hailing player, Cabify, as exploitative and corrupt, and have been applying pressurize on local and national governments to protect their industry.

A judgement from the CJEU at the end of last year, deeming Uber a transport company — and therefore firmly subject to local transport laws — looked like the final nail in the coffin for ride-hailing platforms to circumvent taxi regulations in Europe.

Making lobbying for deregulation and (in the case of Uber) pushing into multi-modal transport options the regional long play for ride-hailing startups. Uber’s e-bikes are heading to Europe this summer.

In Spain the taxi industry’s anger has been focused on failure to uphold a 2015 reversion of a transport law which reinstated an earlier VTC license cap, dating back to 1990, that sets a ration of one VTC per 30 taxis.

However the provision has not been actively enforced, and has seemingly been easy (though not necessarily cheap) for ride-hailing firms to circumvent in practice — with the firms buying up VTC licenses from local operators and recruiting drivers via social media ads and job ad platforms like Jobandtalent.

Reuters reports there are currently 9,000 VTC permits granted to the online services vs 70,000 taxi permits. If the 1:30 ratio were to be upheld it would mean at least 6,600+ fewer permits — so likely thousands of Uber and Cabify contractors being put out of work.

 

VTC association, Unauto VTC, has sought to block attempts to enforce the cap — such as by challenging the Barcelona city authority’s attempt to enforce the ratio last month.

And ride-hailing companies appear to be seeking legal avenues to block the government’s latest move to devolve regulatory powers (for instance an Uber spokesperson pointed us to this report, in Mercado Financiero, which quotes a law professor questioning the constitutional validity of the government’s use of a decree to transfer the competency).

At the same time they are making public noises about wanting to work with the taxi industry.

In a blog post responding to yesterday’s government announcement that VTC regulatory powers would be devolved, Uber holds out an olive branch to taxis, calling for all players in the urban mobility space, private and public, to work together — and arguing that if people are going to leave their cars at home “we must offer them more and more alternatives, not less”.

“If we have learned something these days, we should work together. All together. Because although some insist on presenting this problem as a war, the truth is that it is not so different from the crossroads that all the great cities of the world live,” it writes.

“And at this crossroads, it is in our hands to decide which path we want to take. We can restrict the new mobility alternatives, or we can start working to achieve the objective that we share with the Government, the City Councils, the taxi sector, the VTC and Uber: that fewer private vehicles circulate on our streets every day.”

The company also makes a direct plea to taxi drivers to work with it by backing deregulation of the taxi industry, instead of a cap on the number of VTCs.

“We firmly believe that the solution is not to restrict the VTC, but to make the taxi more flexible so that it can compete better. So you can compete with Uber, not against Uber. Uber and the taxi? It may sound weird, but it is not. We already do it in several cities around the world, and we want to do it in Spain,” it writes.

“It is not about VTC or taxi. It is about that, little by little, we learn to work together to fulfill the objective of all: that you leave your car at home.”

An Uber spokesperson we reached for comment also told us: “The ways people move around cities is changing around the world — we want to partner with all local stakeholders, including taxis, to build better cities in Spain together.”

A spokeswoman for Cabify said the company did not have anything to add beyond its statement last week when it also made a similar plea for stakeholders to unite around a multi-modal urban transport mix — writing then: “We believe that unilateral solutions are not the right solutions to build the mobility of the future and that all players must work together with the administration in order to find the way to ensure the market’s evolution and the protection of all of those who operate in it.”

However the taxi industry’s attacks on the ride-hailing companies include claims that their platforms create precarious ‘jobs’ and underpay their workers.

Neither Uber nor Cabify’s public statements have engaged with that critique.

The most recent taxi strikes started last month in major cities including Spain’s capital Madrid and in the capital of Catalonia, Barcelona.

The strikes were initially scheduled to run for two days but the drivers changed up a gear — announcing a huelga indefinido and going to on spend almost a week blocking streets and making life especially miserable for suitcase-laden summer tourists trying to make trips to and from airports.

There were also violent scenes witnessed on the first day of the strike in Barcelona — which drew widespread condemnation after cars were damaged and there were reports of drivers being attacked and threatened.

The violence was not repeated after appeals for calm, including from one of the main taxi associations organizing the protest action.

This same organization, the Elite Taxi association, has since tweeted that Barcelona taxis have been offering free trips to hospitals to improve relations with citizens.


Source: The Tech Crunch

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Grab picks up $2 billion more to fuel growth in post-Uber Southeast Asia

Posted by on Aug 2, 2018 in alibaba, Asia, carsharing, China, Collaborative Consumption, Commuting, didi, Didi Chuxing, financial services, Fundings & Exits, Google, grab, Indonesia, KKR, lightspeed, lightspeed venture partners, offline to online, Philippines, Softbank, SoftBank Group, Southeast Asia, Tencent, Thailand, Toyota, transport, Uber, United States, vietnam, vulcan capital, warburg pincus | 0 comments

Grab, the ride-hailing service that struck a deal to take Uber out of Southeast Asia, has announced that it has pulled in $2 billion in new capital as it seeks to go beyond ride-hailing to offer more on-demand services.

The $2 billion figure includes a $1 billion investment from Toyota which was announced in June, and it sees a whole host of institutional investors join the Grab party. Some of those names include OppenheimerFunds, Ping An Capital, Mirae Asset — Naver Asia Growth Fund, Cinda Sino-Rock Investment Management Company, All-Stars Investment, Vulcan Capital, Lightspeed Venture Partners and Macquarie Capital.

Grab confirmed that the round is still open, so we can expect that it’ll add more investors and figures to this deal.

The deal values Grab at $11 billion post-money, which is the same as the $10 billion valuation it earned following the Toyota deal. The caliber of investors certainly suggests an IPO is on the cards soon — not that it ever hasn’t been — although the company didn’t comment directly on that when we asked.

This new financing takes Grab to $6 billion from investors. Some of its other notable backers include SoftBank and China’s Didi Chuxing, which both led a $2 billion round last year which gave Grab the gas to negotiate a deal with Uber that saw the U.S. ride-hailing giant exit Southeast Asia in exchange for a 27.5 percent stake in Grab. From that perspective, the deal was a win-win for both sides.

In this post-Uber world, Grab is transitioning to offer more services beyond just rides. It has long done so, with its own payment service and food deliveries, but it is rolling out a revamped “super app” design that no longer opens to a ride request page and that reflects the changing strategy of the Singapore-based company.

10 July 2018; Tan Hooi Ling, co-Founder, Grab, at a press conference during day one of RISE 2018 at the Hong Kong Convention and Exhibition Centre in Hong Kong. Photo by Stephen McCarthy / RISE via Sportsfile

Grab said in a statement today that this new money will go towards that “O2O” [offline-to-online] strategy that turns Grab’s app into a platform that allows traditional, offline services to tap the internet to reach new customers. The trend started out in China, with Alibaba and Tencent among those pushing O2O services, and Grab is determined to be that solution for Southeast Asia’s 650 million consumers.

Indonesia, Southeast Asia’s largest economy with a population of over 260 million, is a key focus for Grab, the company said. The company has been pushed out new financial services in the country, fueled by an acquisition last year, and it claims it is winning “significant market share” with GMV quadrupled in the first half of this year.

With Uber out of the picture, the company’s main rival for the ‘Southeast Asia Super App Crown’ is Go-Jek, the Indonesian on-demand service valued at $5 billion.

Go-Jek has long focused on its home market but this year it unveiled an ambitious plan to expand to three new markets. That kicked off yesterday with a launch in Vietnam, and the company has plans to arrive in Thailand and the Philippines before the end of the year.

Go-Jek has raised over $2 billion and it counts KKR, Warburg Pincus, Google and Chinese duo Tencent and Meituan among its backers.


Source: The Tech Crunch

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