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Posts Tagged ‘Corporate strategy’

The Hard and Harder Truths about Uber, Grab or Go-Gek

In Financial competency, Public Administration on 13/11/2018 at 10:19 am

They got the funding to burn dollar notes, others don’t.

“Tens of others had technology just as good as Uber that never went anywhere. The difference is Uber has been heavily financed by Wall Street and they’ve raised more than $13bn. We didn’t have the same access to capital.”

He says building Uber’s app might have cost something like $30m but the rest of its huge pile of cash has gone on subsidising rides, offering discounts, effectively buying up the market.

CEO of Autocab talking to BBC: https://www.bbc.com/news/technology-46151994

As Autocab had been providing various services to cab firms for 20 years and was developing apps back before Uber got off the ground, the BBC reporter asked the CEO (Safa Alkateb) the obvious question: why wasn’t this Manchester firm heading for a $120bn (£92bn) IPO and global domination and not the start-up born in San Francisco?

Safa Alkateb, who spent a career in Silicon Valley before coming home to run Autocab, had a simple answer – money.

The Harder Truth: Uber raised the white flag in S’pore and the region, the winner Grab stopped subsidising fares. Fares rose while incentives for drivers were scaled back.

The throwing of money is aimed at securing a monopoly or near monopoly position.

South-east Asian authorities gained valuable experience as they scurried to respond, suggested Toh Han Li, chief executive of the CCCS* and this year’s chair for Asean’s competition agencies group. The Grab-Uber case “can be considered as the first significant case involving co-operation among Asean competition authorities”, he said.

Nikkei Asian Review

*Competition and Consumer Commission of Singapore

 

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HoHoHo: StanChart’s CEO is worse than our paper generals

In Banks, Emerging markets, Temasek on 05/10/2018 at 11:03 am

S’poreans have few good things to say about our paper generals and scholars: think SPH’s CEO and ex-SMRT’s CEO.

Well StanChart’s CEO, a true blue ang moh life long banker, makes these guys look good.

When Bill Winters became the Messiah CEO of StanChart in June 2015, the bank’s shares were around £10. Now they are around £6. He was brought in because the previous CEO had run the bank into the ground. The bank overextended, trying to take advantage of other banks’ problems. Unlike them it had a great time during the financial crisis.

Well Winters failed. The shares have dropped about 37%, while Bloomberg’s global banking index has gained 47%.

Ho Ho Ho.

Related posts

Now pays a “peanuts” dividend: HoHoHo: StanChart refuses to resume dividend

This 2016 issue hasn’t been resolved: More on StanChart’s latest problem with the US

HoHoHo: Temasek’s dubious achievement

Feds treat as bribery US bank’s programme for PRC White Horses

In Banks on 27/09/2016 at 2:05 pm
 
JPMorgan’s efforts to hire the children of China’s ruling elite seem to keep coming back to bite it. NYT Dealbook

(JPMorgan hired friends and mamily of leaders at three-quarters of major Chinese firms it took public in HK under the Sons and Daughters program, which ran from 2004 to 2013, JPMorgan took referrals from a broad spectrum of China’s business and political elite, according to a document compiled by the bank as part of a federal bribery investigation)

NYT Dealbook continues

The bank is preparing to settle with federal prosecutors and the Securities and Exchange Commission after being the subject of a federal bribery investigation.
But it is now also facing scrutiny from the Federal Reserve and the Office of the Comptroller of the Currency, two agencies that were not previously known to be involved.
The Fed is seeking a $62 million fine, while the Office of the Comptroller of the Currency will seek to mete out its own punishment, according to people briefed on the investigations. The two regulators are focusing on a breakdown in controls and practices that allowed the improper hiring to take place, rather than the bribery aspect.
JPMorgan is expected to pay federal prosecutors and the S.E.C. about $200 million.

 

MediaCorp’s weird move

In S'pore Inc on 12/05/2012 at 6:29 am

More than 300,000 titles are on offer at ilovebooks.com, a MediaCorp digital initiative.

The online store offers books in 50 categories for download.

It’s the first Singapore bookstore to sell e-books internationally.