Uber’s CEO Leaves, but Its Battles Won’t Go Away

Uber’s CEO Leaves, but Its Battles Won’t Go Away  WSJ

Uber co-founder and CEO Travus Kalanick  has resigned, after invetstors pressured him to step down following six months of scandal and setbacks.
Uber for years has faced opposition in the U.S. and abroad from taxi companies, regulators and -increasingly-its own disgruntld drivers.
Still, Uber’s aggressiveness around the world has  often been viewed  as interlinked with Mr.Kalanick’s own pesonality, and the change of leadership could offer a fresh start with some of the authorities with which Uber has tangled.
In Asia, Uber faces a cluthch of fast-growing, homegrown startups that are capitalizing on factors such as local knowledge and better realationshios with regulators in the battle for ride-hailing turf. Singapore-based startup GrabTaxi Holdings Pte. and Indonesia’s Go-Jek, a motorcycle-hailing app, are both providing fierce competition in Southeast Asia.
CEO’s Resignation Is the Least of Uber’s Problems in Asia   WSJ
Chased out of China by local rival, ride-hailing giant face more of the same in India and Southeast Asia.
Travis Kalanick’s ouster as chief executive of Uber Technology Inc. dealt a potential blow to its efforts in Asia, where the ride-hailing company is locked in a multibillion-dollar battle with local rivals.
Uber retreated from China last year, selling its business there following a costly battle with homegrown rival Didi ChuXing Technology Co. Afterward, Uber said it was sharpening its focus on India and Southeast Asia. But investors and analysts say the San Francisco company’s worries at home may add momentum to fast-growing startups capitalizing on a home-filed advantage, local knowledge and good relationship with regulators.
In the two largest markets here, India and Indonesia, Uber is under serious attack by Ola and Grab,  respectively.
Southeast Asia, home to more than 600 million people, is another key battleground.
Indonesia’s Go-Jeck, a fast-growing motocycle-hailing startup backed by KKR, Warburg Oincus LLC and other, launched its app in 2015 has expanded to provide food and package delivery, on-demand beauty and cleaning serivices and more.
 
Gear Change: Travis Kalanic step down as chief executive of Uber  The Economist
Mr Kalanic failed to manage the fallout from a series of  high-profile blunders and scandals. On June 20th he resigned as chief executive officer of the firm he co-founded in 2009.
Uber is facing several crises, including senior executive departures, a lawsuit over alleged intellectual-property theft, claims about sexual harassment and a federal probe into its use of potentially illegal software to track regulators.
Uber will not change overnight.
Mr Kalanick’s departure should be enough to placate some alienated customers. Regulators may treat Uber kindly,too. Abroad, its scandals have barely registered.
The next chief executive will need to decide whether to chase growth and endure continued steep loss, or cut back on international expansion in order to make more money.

Uber Fail: Upheaval at the World’s Most Valuable Startup is a Wake-Up Call For Silicon Valley

DiDi Raises $ 5.5 Billion

 

1.Didi, China’s Uber, Raises $ 5.5 Billion   WSJ

Chinese ride-hailing startup Didi Chuxing has raised $ 5.5 billion in a new funding round. The cash infusion brings the company’s valuation to more than $50 billion.

It will help fuel its global expansion and push into artifical intelligence.

The new funding round includes investments from menlo park, CA-based Silver lake Parters, Tokyo-based Janpansed telecom and tech giant SoftBank Corp., shenzhen-based China Merchants Bank Co. and China’s Bank of Communication Co..

This funding round makes Didi more valuable than Chinese consumer electronics company Xiaomi Corp.,whose valuation was $46 billion after a funding round in December 2014.

Didi’s larger rival Uber unveiled ambitious plans on Tuesday to test flying cars within three years in the hopes of lowering commute times and transportation costs.

 

2.Didi seeks up to $6 bn to expand beyond China’s borders   FT

Didi Chuxing is poised to raide $5bn-$6bn from investors, an infusion of cash that China’s ride-hailing group will use to expand its transportation services beyond the country’s borders.

The investment will value the company at $50 bn, which makes Didi the world’s second most valuable private tech start-up after Uber.

The deal will mark an acceleration of the foundraising bonanza in the ride-hailing tech sector, which has set records for funds raised, partly bcause ride-hailing companies burn through so much cash.

Investors in the latest round include tech  fund Silver Lake Kraftwerk, Japanese tech group SoftBank and China Merchants Bank. New investors will not have traditional rights due to a proxy arrangement that allow Didi’s management to retain voting control.

The funds will bolster Didi at a time when it is facing regulatory pressure in China’s biggest cities, which have cracked down on out-of-town drivers that work for  the service.

Didi has made investments in San Francisco-vased Lyft, Grab in Southeast Asia and Ola in India.

 

3.China’s Didi Said Near Deal to Become Most Valuable Asia Startup   Bloomberg

  • Ride-hailing service plans to raise at least $5 billion
  • Didi said to raise funds for automated driving expansion

Ride-hailing giant Didi Chuxing is near an agreement to raise at least $5 billion in a deal tha would make it the most valuable startup in China.

Didi’s investors include SoftBank Group Corp., Silver Lake Kraftwerk, China Merchants Bank Co. and an arm of Bank of Communication Co..

The deal is amied at giving Beijing-based Didi sufficient capital to pursue an ambitious agenda in China and beyond.

While the four-year-old start-up has so far focused on ride-hailing services in the domestic market, it’s lookin to expand into more countries and invest in technologies from autonomous driving to artifical intelligence.

Didi wants to take advantage of data on 300 million users across some 400 cities.

Didi opened an artifical intelligence lab in Mountain View, California last month, called Didi Labs.