Uber/Grab and Uber/Didi - Further Examination Of The Deal

Grab is now well on its way to a lucrative IPO following the Uber deal. The deal makes so much sense for all. Uber divested its China ops to Didi and got a substantial stake, the same with Grab. By opting out of the fight, basically it elevated both Didi and Grab into highly listable vehicles.

Mega-potential tech IPOs are getting better at financial acumenship.  Its not always market share. The key is by opting out, Uber need to spend so much  less to burn in those regions. What you do not burn, it goes straight to the bottom line. Secondly, you get equity stakes that elevate your inherent "assets",  which will further lift your own valuation. Thirdly, the moves will allow Didi and Grab to attain much better IPO valuations. Fourthly, it will lock up "regions" for each of them, so as to not needing to fight them tooth and nail in every corner of the globe.

However, this strategy should only work if there are truly just the two of you in a market. If you wish to duck it out more when its a duopoly, it will be a long and expensive fight as both sides keep raising new funds to quash the other side.

I am surprised that there has been no government intervention in these deals because they are really duopolies which are taking advantage of the market conditions at the expense of consumers. I DOUBT VERY MUCH these type of deals will pass in an E.U. setting. Kudos to them to negotiate such deals in "monopoly/duopoly friendly" jurisdictions.

I'd do the same thing if I was any of them, I would also speed up to list before "new rules" comes in on duopolies to prevent any kind of "collusion" (seeming or apparent) or to give rise to "the erosion of a competitive market" or actions "that are not in the interest of the consumer". An immediate group which will not like the deal- the drivers.

SINGAPORE: Uber Technologies Inc. has reached an agreement to sell its South-East Asian ride-hailing business to rival Grab and could announce the deal as early as Monday morning in Singapore, people familiar with the matter said.

The agreement – which includes all of Uber's operations in South-East Asia as well as Uber Eats in the region – gives Uber a stake of between 25% and 30% in the new combined business, they said, asking not to be identified ahead of an official announcement.

The deal, which Bloomberg outlined earlier this month, marks Uber's operational exit from yet another major market and hands a victory to Grab.

SoftBank Group Corp, a major backer of Grab and Uber as well as China's Didi Chuxing, has pushed consolidation to improve the profitability of a global ride-hailing business that bleeds billions of dollars a year. New entrants and the strength of second-place regional players such as Lyft Inc in the U.S. has complicated those efforts.

The deal represents another major retreat from international markets for Uber.

Travis Kalanick, Uber's former chief executive officer, sold Uber's business in China in 2016 in return for a 17.5% stake in Chinese ride-hailing leader Didi Chuxing. Then Uber agreed to sell its Russian business to Yandex – just before after Dara Khosrowshahi took over as chief executive.

Khosrowshahi has been pushing to clean up the company's financials in preparations for an initial public offering next year. Pulling out of markets like South-East Asia would boost profits at a company that has burned through US$10.7bil (RM41.92bil) since its founding nine years ago.

Khosrowshahi signalled during a trip through Asia last month that he is committed to key markets such as Japan and India.

Grab, which has more than 86 million mobile app downloads, currently offers services in more than 190 cities across Singapore, Indonesia, the Philippines, Malaysia, Thailand, Vietnam, Myanmar and Cambodia. – Bloomberg

Read more at https://www.thestar.com.my/business/business-news/2018/03/25/sources-grab-seals-deal-to-take-over-ubers-southeast-asian-operations/#t51Wg2XxfseS85Te.99

Wineknot - Sublime, Subliminal, Substance

Wine bars are aplenty in KL. What makes a wine bar better than the rest? 


SUBSTANCE - Wine

If you want to speak of wine selection, thats a fair comment, but seriously, wine bars do not produce wine. Oh, you mean you have a skilled curator or sommelier ... (the latter is almost unnecessary unless you are talking about a 5 star or Michelin starred restaurant with an enormous selection to start with). 

What I am saying, getting a good variety of wines is not difficult, just peruse a few wine review magazines religiously, and try to stock up on those rated 85-88 or higher, further filtered by their prices (as most of wines consumed in wine bars has to be priced between RM150-400) ... just for show, include 10% of your selection of those between RM800-2,000... and you are on your way to becoming a more than decent wine bar. Another trick is to have very few of the first growth, aim for the second/third for value pricing.






























Recently, I was introduced to Wineknot @ Taman Desa. To me, it probably is one of the top 3 places for wine. Better than that, the accompanying food are either good or excellent.


SUBLIMINAL - Senses

I like a place that not only provides the structure for a wine bar, put some wine there and call it a wine bar. Walk inside and you are instantly attracted by the ambience - its not the over the top "speakeasy lush designs" but rather very warm tones accented by the liberal usage of wood and dark hues. A lot of thought obviously went into the lighting, which was inviting and soothing.

While on design, I must applaud the way they laid out the place, they created walls which basically makes for plenty of nooks and corners for added privacy and seclusion.



All of that make you wish to linger at the place longer, more comfortable to have lengthy conversations.








SUBLIME - The Food, Oh The Food

Actually this place need not even be a wine bar cause the food is usually excellent. The owner is the cook and she creates unbelievably yummy dishes. Iberico is a frequent item, as reflected in the full name of the place. I loved the fried meehoon, to me its a 1 Micheline star dish.

Crispy duck confit

Iberico aglio oilio

Mapo tofu pasta

Matsuzaka beef

Iberico ribs

Iberico rendang with petai





These are just a few of the many more tantalising dishes.




Wineknot Wine & Iberico Kitchen
Address: Danau Business Centre, 9-0-10, Jalan 3/109f, Taman Danau Desa, 58100 Kuala Lumpur, Federal Territory of Kuala Lumpur
Operating hours:  opens everyday, 3:30pm - 2am

People Who Bitch About Good Hawker Food Prices

PEOPLE WHO BITCH ABOUT HAWKER FOOD PRICES 

(I meant "good hawker food", if they were no good, you would walk away, no need to bitch):

so you are questioning how much margin he/she should make... on a bowl of labour/passion, that is your favourite... why we never question what the margin is for I Phone ... or concert tickets... 

but we would question the humble hawker, the vegetable seller who brings his products from the farm... the langsat seller from the back of his truck... 

we happily pay 400% margin to big ticket items but will squeeze the 20-30% or even 50% down for genuine strivers

or is it that we think hawker food should be affordable .... says WHO?? ... this is not socialism or communism ok... good hawker food are not essential items ... think its too expensive, don't buy... just like your I Phone ... eat bread, or better still fucking cook it yourself

We seemed to think that we have a NEED to CAP their fucking salary... would you like me to cap your salary!!??.. 


Is it that we have a mindset that hawkers should never, ever, fucking earn RM10,000 or RM30,000 or RM50,000 a month??!! Check your prejudices.

Meet Your Second Wife

Saturday Night Live... fun show with elements of adult humour, poking fun at politics and celebrities. Every now and then they hit the nail on the head with a superb sketch on "Meet Your Second Wife". The truths and facts that no one wants to examine or be examined. Its achingly funny but also instructive and enlightening at the same time. Enjoy ...