atans1

Posts Tagged ‘Go-Jek’

HoHoHo: Bad news for Go-Jek and Grab

In Indonesia, Malaysia, Temasek, Vietnam on 11/05/2019 at 5:32 am

Uber’s shares sank almost 8 per cent below their offer price on Friday, giving the ride-hailing company a disappointing market value of below $70bn — a far cry from the $100bn valuation it had until recently hoped to achieve.

FT today

Meanwhile Lyft which was valued at U$22.4bn at its IPO closing price (up 9% from its offer price). By May 7th, the day it reported results for the first quarter as a public company, it was worth only US$17bn. Lyft’s share price fell by another 11% the next day.

These performances have

left investors questioning the appetite for unprofitable car-booking companies that have relied on a flood of private capital to fund heated expansion and competition.

FT

As Economist says

Both firms have enough cash to continue to burn money for years, but public investors expect a rapid path to profitability. Making it into the black will require either raising prices or reducing the cut of bookings passed on to drivers. The former will be hard; in many markets ride-hailing competes with other cheap modes of transport, such as buses, bicycles and riders’ own cars.

Think Grab and Go-Jek, and Temasek that has invested in them. Grab and Go-Jek are also losing money.

Btw, in 2018 according to an article in the Tiền Phong newspaper, GIC realised a 60% loss over 4 years after it sold 5.4 million shares in Vietnamese taxi operator Vinasun.

 

Advertisements

Ho Ho Ho: Google agrees with Temasek

In Indonesia, Internet, Private Equity, Temasek on 31/01/2018 at 7:31 am

Years ago, Temasek (along with big private equity firms KKR and Sequioa) invested in Indonesian unicorn Go-Jek. The company provides ride-hailing, food delivery and e-payment services.

Well now, Google has invested in Go-Jek as it seeks to further tap Indonesia’s growing internet economy. Google said on Monday it had chosen to invest in Go-Jek as “there was still more we can do to support and participate in Indonesia’s growth”, noting the country is home to the world’s fifth-largest population of internet users. It did not disclose the size of the investment.

Cybernuts should remember that Temasek and Ho Ching don’t always get things wrong (HO HO HO: How Shi**y is StanChart?).

In fact, Temasek (and GIC) like other professionally run SWFs (Think the Arabs but not the Chinese. Think the Chinese investment in Noble House that will be almost wipewd out.) often get investments more right than wrong.

Another deal Temasek (and GIC) got right: Xiaomi’s IPO will make anti-PAPpyists frus.