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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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Singapore’s Grain, a profitable food delivery startup, pulls in $10M for expansion

Posted by on May 10, 2019 in Asia, bangkok, Cento Ventures, ceo, Deliveroo, Food, food delivery, Foodpanda, funding, Fundings & Exits, grain, Honestbee, Impossible foods, munchery, online food ordering, openspace ventures, Singapore, Southeast Asia, Spotify, Startup company, TC, Thailand, transport, Travis Kalanick, Uber, United States, websites, world wide web | 0 comments

Cloud kitchens are the big thing in food delivery, with ex-Uber CEO Travis Kalanick’s new business one contender in that space, with Asia, and particularly Southeast Asia, a major focus. Despite the newcomers, a more established startup from Singapore has raised a large bowl of cash to go after regional expansion.

Founded in 2014, Grain specializes in clean food while it takes a different approach to Kalanick’s CloudKitchens or food delivery services like Deliveroo, FoodPanda or GrabFood.

It adopted a cloud kitchen model — utilizing unwanted real estate as kitchens, with delivery services for output — but used it for its own operations. So while CloudKitchens and others rent their space to F&B companies as a cheaper way to make food for their on-demand delivery customers, Grain works with its own chefs, menu and delivery team. A so-called ‘full stack’ model if you can stand the cliched tech phrase.

Finally, Grain is also profitable. The new round has it shooting for growth — more on that below — but the startup was profitable last year, CEO and co-founder Yi Sung Yong told TechCrunch.

Now it is reaping the rewards of a model that keeps it in control of its product, unlike others that are complicated by a chain that includes the restaurant and a delivery person.

We previously wrote about Grain when it raised a $1.7 million Series A back in 2016 and today it announced a $10 million Series B which is led by Thailand’s Singha Ventures, the VC arm of the beer brand. A bevy of other investors took part, including Genesis Alternative Ventures, Sass Corp, K2 Global — run by serial investor Ozi Amanat who has backed Impossible Foods, Spotify and Uber among others — FoodXervices and Majuven. Existing investors Openspace Ventures, Raging Bull — from Thai Express founder Ivan Lee — and Cento Ventures participated.

The round includes venture debt, as well as equity, and it is worth noting that the family office of the owners of The Coffee Bean & Tea Leaf — Sassoon Investment Corporation — was involved.

Grain covers individual food as well as buffets in Singapore

Three years is a long gap between the two deals — Openspace and Cento have even rebranded during the intervening period — and the ride has been an eventful one. During those years, Sung said the business had come close to running out of capital before it doubled down on the fundamentals before the precarious runway capital ran out.

In fact, he said, the company — which now has over 100 staff — was fully prepared to self-sustain.

“We didn’t think of raising a Series B,” he explained in an interview. “Instead, we focused on the business and getting profitable… we thought that we can’t depend entirely on investors.”

And, ladies and gentleman, the irony of that is that VCs very much like a business that can self-sustain — it shows a model is proven — and investing in a startup that doesn’t need capital can be attractive.

Ultimately, though, profitability is seen as sexy today — particularly in the meal space where countless U.S. startups has shuttered including Munchery and Sprig — but the focus meant that Grain had to shelve its expansion plans. It then went through soul-searching times in 2017 when a spoilt curry saw 20 customers get food poisoning.

Sung declined to comment directly on that incident, but he said that company today has developed the “infrastructure” to scale its business across the board, and that very much includes quality control.

Grain co-founder and CEO Yi Sung Yong [Image via LinkedIn]

Grain currently delivers “thousands” of meals per day in Singapore, its sole market, with eight-figures in sales per year, he said. Last year, growth was 200 percent, Sung continued, and now is the time to look overseas. With Singha, the Grain CEO said the company has “everything we need to launch in Bangkok.”

Thailand — which Malaysia-based rival Dahamakan picked for its first expansion — is the only new launch on the table, but Sung said that could change.

“If things move faster, we’ll expand to more cities, maybe one per year,” he said. “But we need to get our brand, our food and our service right first.”

One part of that may be securing better deals for raw ingredients and food from suppliers. Grain is expanding its ‘hub’ kitchens — outposts placed strategically around town to serve customers faster — and growing its fleet of trucks, which are retrofitted with warmers and chillers for deliveries to customers.

Grain’s journey is proof that startups in the region will go through trials and tribulations, but being able to bolt down the fundamentals and reduce burn rate is crucial in the event that things go awry. Just look to grocery startup Honestbee, also based in Singapore, for evidence of what happens when costs are allowed to pile up.


Source: The Tech Crunch

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Aptiv takes its self-driving car ambitions (and tech) to China

Posted by on Apr 17, 2019 in Aptiv, Automation, Automotive, automotive industry, boston, China, Co-founder, Delphi, Emerging-Technologies, Karl Iagnemma, Las Vegas, Lyft, manufacturing, NuTonomy, pittsburgh, president, Robotics, self driving cars, shanghai, Singapore, transport, Transportation, United States | 0 comments

Aptiv, the U.S. auto supplier and self-driving software company, is opening an autonomous mobility center in Shanghai to focus on the development and eventual deployment of its technology on public roads.

The expansion marks the fifth market where Aptiv has set up R&D, testing or operational facilities. Aptiv has autonomous driving operations in Boston, Las Vegas, Pittsburgh and Singapore. But China is perhaps its most ambitious endeavor yet.

Aptiv has never had any AV operations in China, but it does have a long history in the country including manufacturing and engineering facilities. The company, in its earlier forms as Delphi and Delco has been in China since 1993 — experience that will be invaluable as it tries to bring its autonomous vehicle efforts into a new market, Aptiv Autonomous Mobility President Karl Iagnemma told TechCrunch in a recent interview.

“The long-term opportunity in China is off the charts,” Iagnemma said, noting a recent McKinsey study that claims the country will host two-thirds of the world’s autonomous driven miles by 2040 and be trillion-dollar mobility service opportunity.

“For Aptiv, it’s always been a question of not ‘if’, but when we’re going to enter the Chinese market,” he added.

Aptiv will have self-driving cars testing on public roads by the second half of 2019.

“Our experience in other markets has shown that in this industry, you learn by doing,” Iagnemma explained.

And it’s remark that Iagnemma can stand by. Iagnemma is the co-founder of self-driving car startup nuTonomy, one of the first to launch a robotaxi service in 2016 in Singapore that the public—along with human safety drivers — could use.

NuTonomy was acquired by Delphi in 2017 for $450 million. NuTonomy became part of Aptiv after its spinoff from Delphi was complete.

Aptiv is also in discussions with potential partners for mapping and commercial deployment of Aptiv’s vehicles in China.

Some of those partnerships will likely mimic the types of relationships Aptiv has created here in the U.S., notably with Lyft . Aptiv’s self-driving vehicles operate on Lyft’s ride-hailing platform in Las Vegas and have provided more than 40,000 paid autonomous rides in Las Vegas via the Lyft app.

Aptiv will also have to create new kinds of partnerships unlike those it has in the U.S. due to restrictions and rules in China around data collection, intellectual property and creating high resolution map data.


Source: The Tech Crunch

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Sila Nano’s battery tech is now worth over $1 billion with Daimler partnership and $170 million investment

Posted by on Apr 16, 2019 in Automotive, automotive industry, Battery Technology, Bessemer Venture Partners, BMW, California, chief executive officer, connected, Daimler AG, electric vehicle, energy storage, fuel cells, General Electric, GreenTech, Jeff Immelt, lithium-ion battery, Matrix Partners, Mercedes-Benz, partner, plug-in hybrid, siemens, Sila Nanotechnologies, smart, sutter hill ventures, TC, transport | 0 comments

Sila Nanotechnologies and its battery materials manufacturing technology are now worth more than $1 billion.

The company, which announced a $170 million funding led by Daimler and a partnership with the famed German automaker, started building out its first production lines for its battery materials last year. That first line is capable of producing the material to supply the equivalent of 50 megawatts of lithium-ion batteries, according to Sila Nano’s chief executive officer Gene Berdichevsky.

That construction, made on the heels of a $70 million investment round, is now going to be expanded with the new cash from Daimler and 8VC along with previous investors Bessemer Venture Partners, Chengwei Capital, Matrix Partners, Siemens Next47 and Sutter Hill Ventures.

Berdichevsky would not comment on how much production capacity would increase, but did say that the company’s battery materials would find their way into consumer devices before the end of 2020. That means the potential for longer-lasting batteries in smart watches, earbuds and health trackers, initially.

From its headquarters in Alameda, Calif., Sila Nanotechnologies has developed a silicon-based anode to replace graphite in lithium-ion batteries. The company claims that its materials can improve the energy density of batteries by 20 percent.

“If you can increase energy density by 20 percent… you can use 20 percent fewer cells and each pack can cost 20 percent less,” says Berdichevsky. “The subtext of it is that it is the way to drive price of energy storage down. And that’s the way for the electric vehicle market to sand more and more on its own.”

That kind of cost reduction is what brought BMW and Daimler to partner with the company — and what led to the massive funding round and the company’s newfound unicorn status.

Our valuation is over $1 billion dollars now,” Berdichevsky says. 

Sila Nanotechnologies

Image courtesy of Sila Nanotechnologies

For Daimler, the materials that Sila Nanotechnologies are developing will give the company’s commitment to electrification a much needed boost.

Mercedes-Benz has plans to electrify its entire product suite by 2022, the company has said. That means Daimler has to accelerate its production of electrified alternatives to its fuel-powered fleet — everything from its 48-volt electrical system (the EQ Boost), to its plug-in hybrids (EQ-Power) and the more than 10 fully electric vehicles powered by batteries or fuel cells. The company is projecting that between 15 percent and 25 percent of its total sales will be electric by 2025 — depending on customer preferences, infrastructure development and the regulatory environment in each of the markets in which it sells vehicles, the company said.

In all, Mercedes-Benz cars has committed to investing €10 billion ($11.3 billion) in the production of vehicles and another $1.3 billion into a global battery production network. The global battery production network of Mercedes-Benz Cars will in the future consist of nine factories on three continents.

“We are on our way to a carbon free future mobility. While our all-new EQC model enters the markets this year we are already preparing the way for the next generation of powerful battery electric vehicles,” said Sajjad Khan, executive vice president for Connected, Autonomous, Shared & Electric Mobility, Daimler AG in a statement.

Still, consumers shouldn’t expect to see vehicles with Sila Nano’s technology until at least the mid 2020s, as automakers look to prove that the company’s battery technology meets their quality assurance standards. “The qualification time means there’s many years of work to make sure it is reliable for next 10 to 20 years,” says Berdichevsky. “Our partnership is geared towards mid-2020s production targets, but the qualification is something that takes quite a while.”

The company’s latest round brings its total financing to just under $300 million since its launch in 2011. And as a result of the latest funding, former General Electric chief executive Jeff Immelt will take a seat on the company’s board of directors.

“Advancements in lithium-ion batteries have become increasingly limited, and we are fighting for incremental improvements,” said Immelt. “I’ve seen first-hand that this is a huge opportunity that is also incredibly hard to solve. The team at Sila Nano has not only created a breakthrough chemistry, but solved it in a way that is commercially viable at scale.”


Source: The Tech Crunch

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Lyft’s imminent IPO could value the company at $23B

Posted by on Mar 18, 2019 in Alphabet, Andreessen Horowitz, Companies, Floodgate Fund, General Motors, initial public offering, Lyft, online marketplaces, rakuten, San Francisco, TC, the wall street journal, transport, Uber, Wall Street Journal | 0 comments

Ridehailing firm Lyft will make its Nasdaq debut as early as next week at a valuation of up to $23 billion, The Wall Street Journal reports. The business will reportedly price its shares at between $62 and $68 apiece, raising roughly $2 billion in the process.

With a $600 million financing, Lyft was valued at $15.1 billion in June.

Lyft filed paperwork for an initial public offering in December, mere hours before its competitor Uber did the same. The car-sharing behemoths have been in a race to the public markets, igniting a pricing war ahead of their respected IPOs in a big to impress investors.

Uber’s IPO may top $120 billion, though others have more modestly pegged its initial market cap at around $90 billion. Uber has not made its S-1 paperwork public but is expected to launch its IPO in April.

Lyft has not officially priced its shares. Its S-1 filing indicated a $100 million IPO fundraise, which is typically a placeholder amount for companies preparing for a float. Lyft’s IPO roadshow, or the final stage ahead of an IPO, begins Monday.

San Francisco-based Lyft has raised a total of $5.1 billion in venture capital funding from key stakeholders including the Japanese e-commerce giant Rakuten, which boasts a 13 percent pre-IPO stake, plus General Motors (7.76 percent), Fidelity (7.1 percent), Andreessen Horowitz (6.25 percent) and Alphabet (5.3 percent). Early investors, like seed-stage venture capital firm Floodgate, also stand to reap big returns.

Lyft will trade under the ticker symbol “LYFT.” JPMorgan Chase & Co., Credit Suisse Group AG and Jefferies Financial Group Inc. are leading the IPO.

Lyft recorded $2.2 billion in revenue in 2018 — more than double 2017’s revenue — on a net loss of $911 million.

Lyft declined to comment.


Source: The Tech Crunch

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Uber reportedly raising $1B in deal that values self-driving car unit at up to $10B

Posted by on Mar 13, 2019 in AV, economy, funding, General Motors, Google, Lyft, Softbank, Softbank Vision Fund, t.rowe price, TC, the wall street journal, Toyota, TPG Growth, transport, Transportation, Uber, United States, Venture Capital, waymo | 0 comments

Uber is in negotiations with investors, including the SoftBank Vision Fund, to secure an investment as large as $1 billion for its autonomous vehicles unit. The deal would value the business at between $5 billion and $10 billion, according to a Tuesday report from The Wall Street Journal.

Uber declined to comment.

The news comes shortly after TechCrunch’s Mark Harris revealed the ridehailing firm was burning through $20 million a month on developing self-driving technologies, which means, according to our calculations, that Uber could have spent more than $900 million on automated vehicle research since early 2015.

According to the WSJ, the deal could close as soon as next month, shortly before Uber is expected to complete a highly-anticipated initial public offering. Uber, in December, filed the necessary paperwork with the US Securities and Exchange Commission to go public in 2019. The documents were submitted only hours after its competitor Lyft did the same; Lyft, for its part, unveiled its S-1 earlier this month and will debut on the Nasdaq shortly.

Uber, to date, has raised nearly $20 billion in a combination of debt and equity funding, reaching a valuation north of $70 billion. The business is said to be seeking funding for its self-driving business in order to tout the unit’s growth and valuation. After all, a $10 billion sticker price on its AV efforts may bandage its reputation, damaged by continued reports questioning its progress.

Alphabet-owned Waymo, meanwhile, is reportedly looking to raise capital, too. This would be the first infusion of outside funding for the autonomous vehicle business, rolled out of Alphabet’s Google X. According to The Information, which broke this news on Monday, Waymo would raise capital at a valuation “several times” that of Cruise, the AV company owned by General Motors.

Raising capital from outside investors would help limit costs and would allow Alphabet the opportunity to display Waymo’s valuation for the first time in several years. Alphabet, however, does not want to relinquish too much equity in the business, justifiably. Waymo, years ago, was valued at $4.5 billion, though analysts claim it could surpass a valuation as high as $175 billion based on future revenue estimates.

Waymo didn’t respond to a request for comment.

Other investors in Uber’s purported round include an “unnamed automaker,” per the WSJ. Uber’s existing backers include Toyota, SoftBank, T. Rowe Price, Fidelity and TPG Growth.

Uber’s net losses were up 32 percent quarter-over-quarter as of late last year to $939 million on a pro forma basis. On an EBITDA basis, Uber’s losses were $527 million, up about 21 percent. The company said revenue was up five percent QoQ sitting at $2.95 billion and up 38 percent year-over-year.

Audi’s new Q4 e-tron concept is a compact electric crossover with 280 miles of range

Posted by on Mar 5, 2019 in Audi, Automotive, Cars, electric vehicles, Geneva Motor Show, sedans, sports cars, transport, Transportation | 0 comments

Audi today provided an advanced look at what will be its fifth production electric vehicle, a compact crossover concept that is expected to come to market at the end of 2020.

The all-electric Q4 e-tron SUV concept, which was revealed at the Geneva International Motor Show, is equipped with dual motors with a power output of 225 kW. An 82 kWh battery provides 280 miles of range; that’s more than the bigger e-tron that debuted in September. Audi bases its range estimate off of Europe’s new WLTP standard.

The first e-tron vehicles — the larger production all-electric SUV — will be delivered to customers before the end of March, Audi said.

The Q4 e-tron is an all-wheel drive vehicle that can travel from 0 to 100 km/h (62 miles per hour) in 6.3 seconds and reaches a maximum speed at an electronically limited 180 km/h (112 mph).Audi Q4 e-tron concept

Inside the Q4 e-tron is the virtual cockpit. A digital display showing speed, charge level and navigation is located behind the steering wheel. A large-format heads-up display with an augmented reality function is a new feature, and displays important graphical information, such as directional arrows for turning, directly on the course of the road, Audi said.

The steering wheel has toggles that a driver can use to control some functions. A 12.3-inch touchscreen located above the center console caps off the whole infotainment system. Meanwhile, the center console is designed as a stowage compartment that  includes a cell phone charging cradle.

Audi Q4 e-tron concept

Interior

There are details about the Q4 e-tron that remain a mystery. For instance, there’s no word on the price. But expect the Q4 to be cheaper than the $74,800 e-tron.

Audi is working toward electrifying its portfolio, a commitment that was borne out of parent company VW Group’s diesel emissions scandal that erupted in 2015. Audi plans to have 12 all-electric models by 2025.

Like other electric vehicles under the VW Group umbrella, the Q4 e-tron has a modular electric drive toolkit chassis, or MEB. The MEB, which was introduced in 2016, is a flexible modular system for producing electric vehicles that VW says will make it more efficient and cost-effective.

Later this year, Audi will introduce the e-tron Sportback, and the first Audi Q2L e-tron, which was designed specifically for the Chinese market, will roll off the assembly line.

In the second half of 2020, the company will unveil the production version of the four-door high-performance coupé Audi e-tron GT, which is being developed at Audi Sport GmbH. The compact Audi Q4 e-tron is expected to make its production debut at the same time.


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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