Will Uber hit $1 trillion? Didi users drop 30%, and Uber loses court battle in The Netherlands
Updated: Sep 30
Every week Obi compiles all the ridesharing and mass mobility news. In this episode, will Uber hit $1 trillion, Uber's CTO steps down, Didi user numbers crash, Grab's reach into financial services has saved the company, in the Netherlands Uber loses a court case plus Geely raises $589m.
Uber's chief technical officer to step down After less than a year, Chief Technology Officer Sukumar Rathnam is stepping down as the company's head of engineering. We are not sure why but it's not a good sign after such a short stint. Read on. Imagine a world in which Uber's hot new business is lending money...
Execs told investors that Grab's diversification into payments and financial services has proven crucial to its survival. As lockdowns occurred in one country, food deliveries rose and as that country reopened, food delivery decreased and mobility services rebounded. Tan and exec Ming Maa described the diversification of offerings and cross-selling as Grab's "secret sauce".
"The more services that our users transact on Grab, the more loyal they become as measured by the retention rates of our MTUs," said Maa.
"As the platform becomes more relevant to everyday life in Southeast Asia, we've seen user spend grow by 27 per cent year over year," said Tan.
The company plans to go public in the US this year through a $39.6 billion merger with a Special Purpose Acquisition Company (SPAC). Read on. Uber loses court battle over whether its drivers are permanent employees
Uber drivers in the Netherlands are entitled to the same employment benefits as taxi drivers, a court has ruled. Judges in Amsterdam said drivers working for the ride-hailing app fall under the Dutch taxi drivers’ collective labour agreement. But Uber has said that the decision is a blow to the gig economy model and is likely to appeal the verdict. Read on
Inside Uber's effort to become the Amazon of transportation
Mark Matousek takes a look through various Business Insider articles across the history of Uber under CEO Dara and how he has reshaped the company, culture and fixed attention to profitability. Read on Chinese Uber rival Didi's users drop by 30 per cent after US IPO saga
Chinese ride-hailing giant Didi has lost 30 per cent of its app’s daily users since its $4.4bn IPO in New York at the end of June, in the latest blow to the company following Beijing’s harsh regulatory crackdown for an alleged data breach. Didi’s average daily users plunged to 10.9m in August from 15.6m in June, according to data from Chinese mobile data tracker Aurora Mobile, first reported by the Financial Times. Read on.
Chart of the Day: Uber and Lyft race to corner the US ride-sharing market
emarketer.com's chart of the day focuses on Uber and Lyft sales projections. Uber and Lyft are both poised to see US ride-sharing sales grow for years to come, but the former’s will rise faster and from a higher base. By the end of 2023, Uber will surpass $35 billion in ride-sharing sales, up from $14.15 billion last year. By comparison, Lyft brought in $7.56 billion last year and won’t arrive at the $14 billion mark until 2023. Read on.
Uber: The Road To $1 Trillion Valuation Seeking Alpha has a rather optimistic piece about Uber's road to $1 trillion, quoting their long-term prospects as "magnificent" and that they could read that magic number by 2030, driven by autonomous vehicle adoption and margin expansion. Read on
Women ridesharing startup Shebah in sale negotiations
Woman founded and focused rideshare startup Shebah is in discussions about a potential sale to another rideshare provider or a digital auto company. Shebah could be valued at up to $15 million because of the valuable exemptions to anti-discrimination laws the startup holds, and its database of women drivers and licences which enable it to transport unaccompanied minors. Read on
Geely’s ride-hailing unit Cao Cao Mobility raises $589M Series B to upgrade tech and expand fleet
Cao Cao Mobility, the ride-hailing unit of Chinese automaker Geely Automobile Holdings, has announced a $589 million (RMB 3.8 billion) Series B raise that the company says will help it upgrade its technology and expand its fleet.
The raise, which Cao Cao announced on Monday, brings the company’s total funding to around $773.2 million (RMB 5 billion). Suzhou Xiangcheng Financial Holding Group, an investment company backed by the Xiangcheng district government of Suzhou, led the round along with Suzhou High-Speed Rail New City Group and three other state-controlled enterprises.
This raise comes amid troubles for Cao Cao’s biggest competitor, Didi Global, the Chinese ride-hailing app that’s currently under cybersecurity investigation by the Chinese government and has been temporarily removed from Chinese app stores causing stocks to plummet. Read on Office Space News: Waymo Expands in San Francisco With Uber Lease
The company is subleasing more than 48,000 square feet (4,460 square meters) at 555 Market Street in the city’s financial district from Uber Technologies Inc. (yes the same Uber it sued). Waymo already has space in the Bayview neighborhood, while Google has several offices in the city. Read on.