181–190 of 194 posts
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A general approximation in business is that the non-US market is 5-8x the US market. So if the world market is only 9x the China market, I'd consider that a very big deal.
Is that an approximation for US businesses?
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Fail to compete with Didi in China
So in future can Didi give challenge to Uber in other markets? or Due to this deal, Didi cannot come to US or other non-China markets and directly compete with Uber?
I can't tell if this is a good deal for Uber investors or not. As I understand it, Uber will own a 20% share in the combined company. The combined company is valued at $35 billion, so Uber's share of the value will be $7 billion (actually less, since they also need to share it with Baidu which invested directly into Uber China too). $7 billion doesn't sound too bad as an exit. However, if Uber's China business is wor…
Uber needs to not just be successful, it needs to be MASSIVELY successful. It's valued at north of $60B! If it makes a bunch of modest deals that are successful to the tune of making a 15% return on investment, and that investment is $2B, then it needs like 20 of those deals to justify its valuation, much less to grow.
At risk of pointing out the obvious, there aren't 20 Chinas. And Uber doesn't have $40B to spend on a series of 20 $2B deals.
Uber's entire existence for at least the last five years has been predicated on being a major global game-changer. Anything that is less than "major global game-changer" for them is a failure.
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And of course infamously Google and Facebook dominate most of the planet, but can't compete in China (and Baidu can't manage to do much outside of China).
Its even worse than that: Myanmar, Cambodia, Vietnam, ... most of China's neighbors who are just getting into the internet now...are strictly Facebook/Google territory, Chinese internet companies can't even compete in their backyard.
>chief executive of Uber wrote in a blogpost obtained by Bloomberg. You mean obtained it, like it isn't available to the general public or something? Did they let you make a copy or was it FYEO?
I realize this is a complex deal with many nuances but do elements of all of this not sound a little bit like a ponzi scheme? At least outwardly? Didi which itself has lost billions dollars so far has agreed to invest a billion dollars into another company who has lost billions of dollars. I guess investors are that confident that Uber can not and will not fail?
In order for it to be a ponzi scheme the money being invested in Uber would need to be used to directly pay off previous investors. That is not happening. Investing in Uber may or may not turn out to be a good investment, but it's not a Ponzi scheme.
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In order for it to be a ponzi scheme the money being invested in Uber would need to be used to directly pay off previous investors. That is not happening. Investing in Uber may or may not turn out to be a good investment, but it's not a Ponzi scheme.
There is now money that can be taken off the table. You don't think investors are going to get any of that?
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Its even worse than that: Myanmar, Cambodia, Vietnam, ... most of China's neighbors who are just getting into the internet now...are strictly Facebook/Google territory, Chinese internet companies can't even compete in their backyard.
Are u kidding? Those Chinese private companies are not charity. For the countries you mentioned, Myanmar, Cambodia, Vietnam, their market is too small, their population's income is too low, compared with the investment. Why would they care about them? Meanwhile, did you hear Chinese cellphone, mobile games are so popular in Vietnam and India?
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Body odor.
Ugh, this was the part I hated most about commuting on the MBTA in Boston. It's not too bad in the winter (cold) or summer (AC is on all the time), but the shoulder seasons, when humidity is high but temperatures are moderate so the AC isn't on, were brutal.
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Uber's China business was losing money before (I believe to the tune of about $1bn/year), and it looked like they weren't going to get a permanent hold in that market. Local competition was very strong. Consequently, I would conjecture that China was never a large part of Uber's valuation. Leaving it at slightly more than 10% of their valuation seems reasonably realistic to me. Keep in mind: * The major Chinese citie…
As a Chinese national, I disagree. Taxi experience in big cities in China is generally better because of heavier regulation and competition. In many medium to small cities, it is far worse. Now note Uber only compete in big cities while Didi has already been operating in many smaller cities with large market share. Yet Uber still fails to expand to where ride hailing by app should be popular and desirable. Scooters?…