SoftBank Devalues Uber by 30% With Latest Offer

Alphabet Leads $1 Billion Round of Investment in Lyft 3 comments

The investment arm of Google's parent company has invested in the ride-hailing company Lyft, raising $1 billion along with other companies, and valuing Lyft at $10-11 billion:

Alphabet Inc.'s investment arm, CapitalG, led a $1 billion investment in Lyft Inc. that values the ride-sharing startup at $11 billion, the ride-sharing startup said.
The funding marks a major shift in Alphabet's allegiances away from Uber Technologies Inc., and suggests a tighter pairing of its Waymo autonomous vehicle technology with Lyft's transportation network. David Lawee, a partner at CapitalG, will join Lyft's board.
The cash infusion helps Lyft compete with Uber, which has been reeling from a series of scandals and executive turnover in 2017. Bloomberg previously reported Alphabet was considering a $1 billion investment. The internet giant was a major Uber backer, but the companies have clashed in court over autonomous vehicle technology this year.

Lyft is considering an IPO by next year:

Lyft has had talks with investment banks about an initial public offering next year, according to two people briefed on the discussions, who asked to remain anonymous because the conversations are confidential. Lyft has not decided which bank may become its lead underwriter for an I.P.O., the people said.
[...] Lyft has benefited from Uber's series of high-profile stumbles in recent months to lift its own profile. The two companies are locked in something of a race for which can go public first; whichever company does will most likely set a benchmark for Wall Street for the valuation of a public ride-hailing company.

Also at The Verge and Slate.

Original Submission

SoftBank to Invest Billions in Uber 7 comments

takyon writes:

Uber board strikes agreement to pave way for SoftBank investment

Uber Technologies Inc's warring board members have struck a peace deal that allows a multibillion-dollar investment by SoftBank Group Corp to proceed, and which would resolve a legal battle between former Chief Executive Travis Kalanick and a prominent shareholder.
Venture capital firm Benchmark, an early investor with a board seat in the ride-services company, and Kalanick have reached an agreement over terms of the SoftBank investment, which could be worth up to $10 billion, according to two people familiar with the matter.
The Uber board first agreed more than a month ago to bring in SoftBank as an investor and board member, but negotiations have been slowed by ongoing fighting between Benchmark and Kalanick. The agreement struck on Sunday removed the final obstacle to allowing SoftBank to proceed with an offer to buy to[sic] stock.

Also at TechCrunch.

Original Submission

Uber to Purchase 24,000 Volvo SUVs for Autonomous Vehicle Fleet 5 comments

takyon writes:

Uber plans to purchase 24,000 Volvo XC90 SUVs between 2019 and 2021. The number is set to change:

Uber has entered into an agreement with carmaker Volvo to purchase 24,000 of its XC90 SUVs between 2019 and 2021 to form a fleet of autonomous vehicles, according to Bloomberg News. The XC90 is the base of Uber's latest-generation self-driving test car, which features sensors and autonomous driving computing capability installed by Uber after purchase on the XC90 vehicle.
The deal is said to be worth around $1.4 billion, per the Financial Times, with the XC90 starting at $46,900 in the U.S. in terms of base model consumer pricing. Uber is already testing the XC90 in Arizona, San Francisco and Pittsburgh in trials with safety drivers on board to help refine and improve their software. Uber also paired up with Volvo to jointly develop autonomous driving and a vehicle ready for self-driving implementation, with investment from both sides committed last year.

Also at NYT.

Previously: Uber Testing Driverless Car in Pittsburgh
Uber to Begin Picking Up Passengers With Autonomous Cars Next Month
Uber's Self-Driving Cars to be Tested in San Francisco

Original Submission

SoftBank Knew of Data Breach at Uber 5 comments

takyon writes:

SoftBank learned of a data breach at Uber while it was attempting to invest in the company:

Uber Technologies Inc said on Thursday that it discussed a massive data breach with potential investor SoftBank Group Corp ahead of going public with details of the incident on Tuesday.
The ride-hailing service is trying to complete a deal in which the Japanese company would invest as much as $10 billion (£7.52 billion) for at least 14 percent of Uber, mostly by buying out existing shareholders.
"We informed SoftBank that we were investigating a data breach, consistent with our duty to disclose to a potential investor, even though our information at the time was preliminary and incomplete," Uber said in a statement.
"We also made clear that our forensic investigation was ongoing," Uber said. "Once our internal inquiry concluded and we had a more complete understanding of the facts, we disclosed to regulators and our customers in a very public way."

Maybe they should wait for the stock to collapse first.

Also at Bloomberg.

Previously: SoftBank to Invest Billions in Uber

Original Submission

SoftBank Acquires 20% of Uber While Massively Devaluing It 5 comments

takyon writes:

SoftBank has finally secured a large stake in Uber that devalues the company and reduces former CEO Travis Kalanick's influence on the company:

Japanese tech giant SoftBank Group has bought a 20 percent stake in Uber, completing a months-long process, according to the Wall Street Journal. The move drops Uber's value by about 30 percent from around $70 billion to $48 billion — a reflection of the trouble that the ride-hailing company has experienced across 2017.
More important than the valuation change, though, could be the impact SoftBank's new stake will have on the influence former CEO Travis Kalanick still has on the company. Kalanick resigned from his post earlier this year after a number of scandals, but still maintains a seat on the company's board of directors, where he is surrounded by allies and controls 16 percent of the voting power.
The SoftBank deal triggers new governance terms at Uber that were approved by the company's board in October, though. The size of the board will expand from 11 to 17, which dilutes the power Kalanick wields. Two of those seats will go to SoftBank.

Also at Recode, CNBC, and Quartz.

Previously: SoftBank to Invest Billions in Uber
SoftBank Knew of Data Breach at Uber
SoftBank Devalues Uber by 30% With Latest Offer

Original Submission

Uber Retreats From Southeast Asia With Sale to "Grab" 12 comments

takyon writes:

Uber has exited the Southeast Asian ride-hailing market with a sale to Singapore-based Grab, which also operates in Malaysia, Indonesia, the Philippines, Vietnam, Thailand, Myanmar, and Cambodia:

Uber is selling its South East Asia ride-share and food delivery businesses to regional rival Grab. The move marks a further retreat from international operations for Uber, after it sold its China business to local rival Didi Chuxing. Both firms describe the deal as a win for their passengers, but analysts warn it could mean higher prices.
Grab is South East Asia's most popular ride-sharing firm with millions of users across eight countries. Under the terms of the deal, Uber will take a 27.5% stake in Singapore-based Grab. Uber's chief executive, Dara Khosrowshahi, will also join Grab's board.

SoftBank is the biggest investor in both companies, and could also engineer an Uber exit from India, where it competes with Ola:

[...] real victory unquestionably belongs to Masayoshi Son's SoftBank Group Corp., the single-biggest investor in both companies. As I wrote earlier this month, by engineering a retreat for the U.S. company before any more bloodletting for market share, Son ensures that six-year-old Grab will emerge as an early champion in a winner-takes-all business.
A faster path to profit for Uber could also boost its valuation ahead of a planned IPO next year. But at what cost? Having already surrendered China to Didi Chuxing, beating a retreat from Southeast Asia is a precursor to perhaps losing India, the lone remaining jewel in Uber's once-flourishing Asian empire.
In India, once again, SoftBank is the largest investor in Uber's main rival, Ola. Competition between the two apps has become ridiculous. For all the PR gobbledygook on how happy Uber and Ola drivers are, the reality is that many who took out bank loans to acquire new cars are hurting badly. There's a glut of ride-hailing cars; wages have collapsed. Banks are collecting on "DUD," -- my moniker for "distressed Uber debt" -- by repossessing vehicles.

Uber's new CEO, Dara Khosrowshahi, says there will be no more exits from global markets (in addition to China, Uber also left Russia). But SoftBank may continue to pursue a strategy of exiting emerging and less profitable markets in exchange for large stakes in competitors.

Original Submission

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