OUCH. I invested in YC W15 companies (thirteen of them) through FundersClub but they missed this one.
Dear YC - please allow me to invest in the whole class, like you did for Michael Bloomberg!
Ford Acquires Chariot (YC W15)
21–30 of 65 posts
Re: Ford Acquires Chariot (YC W15)
#22Yeah the next market is obviously Austin, they've been hiring for ops and marketing for months now. I know because I've been watching and waiting forever for Chariot to come here and show Capital Metro how modern, efficient transit is done.
Capital Metro doesn't have the budget for a modern, efficient transit system. You can thank your local politicians for that.
Re: Ford Acquires Chariot (YC W15)
#23I find it very interesting and frankly quite stupid that Ford is attempting to become an Uber / Silicon Valley / Technology type company[1]. They practically made the auto industry and have been a leading manufacturer for ~100 years. But lets drop and forget all that, technology is cool! I predict that in 5-10 years this will really come back to haunt them. I was planning to buy some Ford stock for a while, but after…
Ford did $7.373 billion in net income on $149.5 billion in revenue 2015. If the $30 million number purchase price being thrown around is correct, that's ~ 0.4%. Not at all a terrible investment to make for a company of Ford's size.
Nokia, Motorola, RIM, Palm were leading manufacturers as well, and they all had their lunch eaten.
Re: Ford Acquires Chariot (YC W15)
#24Earlier quoted context omitted.
In ten years, all auto makers will either be tech companies, or they will be out of business. I'm impressed that GM and Ford have the foresight to understand this.
100% disagree. Manufacturing is hard, ask everyone who has done a physical product kick-starter. Giving X people mac books and asking them to write a "Clone of X Tech Startup" is not that hard, just potentially time consuming. Now, Ford may USE technology to improve their manufacturing and core product (a transportation device). They may become an ultra high-tech manufacturer (if they aren't already)..., but they wil…
Maybe they'll learn how to augment their current manufactured products by integrating in high-tech features. Imagine all of the negative reviews of something really basic: CarPlay-type UI between vehicles and smartphones. Most car manufacturers haven't even gotten that right, despite partnering with tech companies. If automakers learn the correct lessons from tech startups, maybe they'll be able to start getting those right.
Re: Ford Acquires Chariot (YC W15)
#25Former Chariot corporate (non-driver) employee here.
This is a rescue acquisition, pure and simple.
I could probably write a book about how not to run a company based on my experience there. Coordination failures at all levels and constant managerial abuse. In the words of an Uber employee familiar with the situation, "That company has employees solely so they can be a clueless, abusive megalomaniac's captive audience". Just read the Glassdoor reviews- the ones that aren't the fake 5 star reviews the CEO paid someone to submit.
Another employee has set up a Former Chariot Employee Alumni support group, FYI. Message https://www.suggestionox.com/r/Q5EWLs with your LinkedIn details if you are one and you need help.
Re: Ford Acquires Chariot (YC W15)
#26I find it very interesting and frankly quite stupid that Ford is attempting to become an Uber / Silicon Valley / Technology type company[1]. They practically made the auto industry and have been a leading manufacturer for ~100 years. But lets drop and forget all that, technology is cool! I predict that in 5-10 years this will really come back to haunt them. I was planning to buy some Ford stock for a while, but after…
In ten years, all auto makers will either be tech companies, or they will be out of business. I'm impressed that GM and Ford have the foresight to understand this.
Detroit will rise again in the next decade. They have pretty enticing offers for software engineers to move in. Right now you can get a stellar house for around ~150k which I am sure will triple in value in 20 years. Trying to convince my wife to move there from warmer climate, however... If anyone wants to help me there I am all ears, haha.
Re: Ford Acquires Chariot (YC W15)
#27I find it very interesting and frankly quite stupid that Ford is attempting to become an Uber / Silicon Valley / Technology type company[1]. They practically made the auto industry and have been a leading manufacturer for ~100 years. But lets drop and forget all that, technology is cool! I predict that in 5-10 years this will really come back to haunt them. I was planning to buy some Ford stock for a while, but after…
I dunno -- if self-driving cars become so good, so safe, so ubiquitous -- they'll be more like a utility. Why own a car and all the maintenance hassle, or for a family -- why own two?
If that comes about, then the automobile market would likely shrink or growth would stagnate. Purchasing of automobiles would be much less about any kind of individualism/style/brand loyalty. Competition for share would be more intense. Ford would do well to try and integrate itself into the service-provider realm to stay relevant.
Re: Ford Acquires Chariot (YC W15)
#28Earlier quoted context omitted.
Almost certainly an amount that wipes out common stock holders. People they want to keep will get a retention offer, but with the acknowledgment that their stock in Chariot is now worth $0.
First of all, the story doesn't mention anything about the size of the deal. Second of all, the company is selling after ~2 years. The average employee has probably been there for less than 1 year. Excluding the common stock of the founders (since they are the ones who made the decision to sell), employee common stock grants and common stock options are all about ensuring employees get a share of blockbuster company…
That's fine. I am assuming all these employees were paid good market salaries as well right?
Re: Ford Acquires Chariot (YC W15)
#29Earlier quoted context omitted.
In ten years, all auto makers will either be tech companies, or they will be out of business. I'm impressed that GM and Ford have the foresight to understand this.
Detroit will rise again in the next decade. They have pretty enticing offers for software engineers to move in. Right now you can get a stellar house for around ~150k which I am sure will triple in value in 20 years. Trying to convince my wife to move there from warmer climate, however... If anyone wants to help me there I am all ears, haha.
Don't look in Detroit just yet. The city isn't there (yet!). Look in Ann Arbor.
Re: Ford Acquires Chariot (YC W15)
#30For some reason, this reminds me of when GM & co bought all the streetcar companies, only to kill off streetcars in favor of busses.
https://en.wikipedia.org/wiki/General_Motors_streetcar_consp...