uber comes of age with softbank tieup
Last Updated : GMT 06:49:16
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 06:49:16
Arab Today, arab today

In the business world

Uber comes of age with SoftBank tieup

Arab Today, arab today

Arab Today, arab today Uber comes of age with SoftBank tieup

Uber has become a global phenomenon operating in more than 600 cities and dozens of countries
San Francisco - Arab Today

 Uber's tieup with Japanese tech giant SoftBank suggests the ridesharing giant is set to come of age in the business world, but it still faces a long road ahead.

The deal is giving the world's most valuable startup an additional $1 billion in capital and could allow SoftBank to acquire as much as 14 percent of Uber over time.

While Uber has become a global phenomenon operating in more than 600 cities and dozens of countries, it is trying to move past a series of scandals and missteps that have included executive misconduct, a toxic work atmosphere and potentially unethical competitive practices.

One step toward the future was the hiring of chief executive Dara Khosrowshahi earlier this year, which left founder Travis Kalanick in the background.

But Uber needs to clean up its governance and other practices if it intends to meet its goal of a 2019 stock market debut that will open up the privately held firm to greater scrutiny.

"The SoftBank investment suggests Uber is becoming far more mature, however momentum is against the company at the moment, so there is some risk it will be too little and too late," said analyst Rob Enderle of Enderle Group, who follows Silicon Valley.

Enderle said Uber's agreement with SoftBank is "a great start, but just that, and the truly hard work is still to be done."

Under Kalanick, Uber reached an eye-popping valuation of $68 billion, unprecedented for a private firm. But at the same time it has faced resistance from traditional taxi operators and regulators, and faces a possible ban in cities like London for failing to live up to local rules.

The deal with SoftBank is aimed at getting past the clashes between Kalanick and early investors like Benchmark Capital, which has sued the former CEO.

SoftBank is expected to buy up shares from some investors by pumping in as much as $9 billion, in a so-called tender offer to Uber stakeholders.

Rajeev Misra, CEO of SoftBank Investment Advisors, said some details are not yet final.

"By no means is our investment decided. We are interested in Uber but the final deal will depend on the tender price and a minimum percentage shareholding for SoftBank," Misra said in a statement.

Uber called the SoftBank deal "a strong vote of confidence" in the company's long-term potential.

"Upon closing, it will help fuel our investments in technology and our continued expansion at home and abroad, while strengthening our corporate governance," it added.

But Uber has other issues as well. It is in court facing Waymo, the former Google Car unit, which has alleged the theft of trade secrets on autonomous vehicle technology, in a case pending in California.

Uber's use of software aimed at thwarting rivals like Lyft has also hurt its image, and could create further legal woes.

- Autonomous potential -

Jack Gold, president of J. Gold Associates, said the deal with SoftBank suggests the Japanese firm "is now feeling much more comfortable that the board is asserting some control and that many of the bad publicity is behind Uber."

"Uber has a lot of potential, especially in the emerging world of autonomous driving. I think that's where SoftBank has its focus on the investment," the analyst added.

Uber is facing tougher competition around the world, with rivals in Asia and Europe ramping up efforts and the expansion of US-based Lyft -- which on Monday announced it would launch services in its first city outside the US market in Toronto, Canada.

Uber appears to have a head start on its rivals, but it's not clear if it can keep its lead.

"It depends on whether or not the board can continue to assert some control and maturity on the running of the company," Gold said.

"At the moment, it looks good, but we have to see if the old management with lots of stock can make its way back into the mix."

Source:AFP

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

uber comes of age with softbank tieup uber comes of age with softbank tieup

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

uber comes of age with softbank tieup uber comes of age with softbank tieup

 



GMT 12:47 2016 Thursday ,01 September

'La La Land' musical masterpiece dazzles Venice film fest

GMT 12:42 2017 Monday ,20 February

Dalia al-Behairy begins 'Yawmiyat Zoga Mafrosa'

GMT 19:01 2017 Wednesday ,30 August

Oil prices down as US reels from Harvey

GMT 04:19 2017 Monday ,08 May

National forces attack mercenaries in Taiz

GMT 19:21 2017 Sunday ,07 May

Iranian Film Week opens in Baghdad

GMT 21:33 2017 Sunday ,30 July

Arab Quartet meeting kicks off in Bahrain

GMT 17:17 2016 Friday ,07 October

Aleppo bleeds as US and Russia spar

GMT 12:03 2015 Monday ,21 December

Nepal protester killed in constitutional crisis clash

GMT 09:47 2016 Thursday ,22 December

Trump vows to cut F-35 spending, as leaked memo

GMT 21:44 2017 Friday ,15 December

King establishes Hawar Development Committee

GMT 20:57 2017 Tuesday ,16 May

Naval Forces rescue 23 tourists in Hurghada

GMT 12:56 2017 Monday ,11 December

Lyon leave it late, Balotelli with Nice winner

GMT 06:18 2017 Thursday ,19 October

Russian delegation meets with Julphar chairman

GMT 21:20 2017 Monday ,23 October

Nasr, delegation of London Stock Exchange

GMT 14:40 2012 Saturday ,10 March

Magdy Al-Galad steps down

GMT 09:47 2017 Sunday ,12 March

Cat Camp in New York attracts cat lovers

GMT 14:57 2016 Friday ,09 September

Madonna, Ritchie settle child custody dispute

GMT 23:52 2017 Monday ,18 September

UAE economic growth boosting logistics sector
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday