Uber – Page 428 – I wish I had more to offer

Lyft pops 21% on its first day of trading on Nasdaq after raising $2.2B in its IPO at a $24B valuation

Ride-hailing startup Lyft may bear the distinction of having highest net loss of any maiden public company ever going public, but despite that, it made its debut in a high gear this morning. Trading as LYFT on Nasdaq, the company’s shares opened at nearly noon today at just under $87/share, a pop of 21 percent on… Continue reading Lyft pops 21% on its first day of trading on Nasdaq after raising $2.2B in its IPO at a $24B valuation

Monday Morning Auto News, Apr 01, 2019

Tesla boom lifts Norway’s electric car sales to 58 percent market share – Reuters: IndiaAlmost 60 percent of all new cars sold in Norway in March were fully electric, the Norwegian Road Federation (NRF) said on Monday, a global record set by a …
New Alfa Romeo GTV: 2022 hybrid super-coupe leaks – Autocar: Styling of upcoming hybrid two-door seemingly revealed well ahead of official unveiling A leaked image may have given us our best look yet at Alfa Romeo”s forthcoming GTV coupe, which isn”t due to be unveiled until 2021. The single image, purportedly…
Maruti Suzuki sales continue to fall as India car demand slows ahead of elections – Nikkei: Maruti Suzuki India’s sales continued to decline as demand for cars slowed further in March, piling up inventory and forcing …
Buying Lyft stock requires making ‘too many big assumptions,’ analyst warns amid IPO hype – CNBC: Guggenheim restrained its enthusiasm for shares of Lyft on Monday, beginning coverage of the rideshare company’s stock with a neutral rating due to what the firm sees as a hazy outlook.

Volvo XC40 full-electric variant to debut this year – Automotive News: Volvo will reveal the full-electric version of the XC40 before the end of the year. The XC40 will be the first battery-driven model from the brand.
Here’s what Uber can learn from Lyft’s IPO – CNBC: Triton Research co-founder and CEO Rett Wallace joins “Squawk Box” along with guest host Mohamed El-Erian, chief economic advisor at Allianz, …
Uber of Iran Hits Two Million Rides-a-Day Mark Amid Growth Spurt – Bloomberg: Snapp, also known as the Uber of Iran, said its ride-hailing app is generating two million fares a day as young people in Tehran embrace technology …
Skoda, Hyundai, Dacia among winners as French sales fall 2% in March – Automotive News: French new-car sales fell by 2.3 percent in March, with Skoda, Hyundai, Dacia and Seat recording double-digit increases.
For want of a quorum, America’s jobs are being lost – CNBC: … CRRC, China Mobile, SAIC Motor, China Railway, China Aerospace Science and Technology, the list of China’s national champions spans virtually …
Analysis: how to save the city car – Autocar: Cars like the Citroen C1 and Volkswagen Up are under threat Value small cars are at risk of extinction. Profits are slimming, costs are rising. Is there a solution? The message was as bleak as it was clear. “If Europe is pursuing this legal target,…
Hyundai Venue SUV: Launch, features, expected price revealed – Yahoo: Right, Hyundai Venue, I know the name, some more info please? This is a new sub-4m compact SUV by Hyundai and the much awaited rival to the …
Peugeot, Fiat Said to Explore Venture to Build Cars in Europe – Bloomberg: PSA Group and Fiat Chrysler are reportedly exploring a partnership to build cars in Europe. Bloomberg has learned the companies are holding …
The Auto Industry Is Overdue a Bout of Mega-Mergers – Bloomberg: It’s not clear that this necessary process can easily happen. As we’ve seen with the Renault-Nissan saga, the Trump administration’s automotive tariff …
VW, BMW, FCA, others make changes to protect profits in China – Automotive News: “The total market is cooling down, but the premium market is cooling down less,” Audi CEO Bram Schot told Automotive News Europe. “What’s more …
BUZZ-India’s Tata Motors rises; JLR confirms expectations of better Q4 results – Reuters: Automaker Tata Motors Ltd’s shares rise as much as 6.3 pct to 185.2 rupees, in their biggest intraday pct gain since March 5.
Toyota robot can’t slam dunk but shoots a mean 3-pointer – Washington Post: It can’t dribble, let alone slam dunk, but Toyota’s robot hardly ever misses a free throw or a three-pointer.
General Motors seeks dismissal of union lawsuit on closures – Washington Post: Attorneys for General Motors have asked a federal judge to dismiss a lawsuit claiming the automaker sidestepped an agreement with union workers through its …
Toyota robot can’t slam dunk but throws a mean three-pointer – Washington Post: It can’t dribble, let alone slam dunk, but Toyota’s robot hardly ever misses a free throw or a three-pointer.
In North America’s Biggest Uber Holdout, It Pays to Know Chinese – Bloomberg: Welcome to Vancouver, one of Uber’s most obstinate holdouts — the largest North American metro region without legal ride sharing, where …
Italy Seen Needing Energy Storage to Deliver on Pollution Pledge – Bloomberg: … cars might help balance the grid, since the batteries in those vehicles might … the executive said in an interview at Bloomberg’s European headquarters in London. “Today in Italy, we have a limited number of electric vehicles. … a battery is a…
French interest in Jeep: Deja vu? – Automotive News: Last week’s French drama, in which PSA Group and Renault-Nissan were said in dueling media reports to both be interested in a bid for Fiat Chrysler …
Merger buzz rings with irony – Automotive News: And how odd that with both Fiat Chrysler CEO Sergio Marchionne and former Renault-Nissan Chairman Carlos Ghosn gone, their companies find …
What a truck”s off-road package really gets you – Detroitnews: Are off-road packages worth the money?
GM brushed off UAW concessions to idle Lordstown plant – Detroitnews: Union workers are angry they agreed to make $118 million in annual concessions to save the plant in mid 2017.
Convicted Fiat Chrysler exec raises questions about former UAW boss – Detroitnews: Retired UAW President Dennis Williams could be questioned about alleged illegal payments amid corruption scandal involving Fiat Chrysler.
Jettisoned Chrysler dealers challenge U.S. in court – Automotive News: Almost 300 of the Chrysler dealers whose franchises were terminated in the 2009 bailout will continue their fight in Washington on April 8, nine years after they sued the U.S. Treasury.
U.S. sales drop with no reason for buying – Automotive News: “Consumers simply haven’t had a compelling reason to buy,” Cox Automotive’s chief economist said.
Sun plays tricks on Cadillac’s Super Cruise – Automotive News: The issue involves a critical part of the system that monitors the driver’s attentiveness.
Toyota’s Lentz: U.S. has a lot to lose in trade fight – Automotive News: If the U.S. and Japan can’t find common ground, tariffs could knock down 2 million new-vehicle sales as quick as a Texas windstorm, the automaker’s North America chief warned.
JLR wins a rare challenge against Chinese copycat Landwind – Automotive News: A Chinese court ruled recently that Jiangling Motors’ LandwindX7 SUV from 2014 was too similar to Range Rover Evoque. In a rare decision, it ordered the …
Survey finds flagging loyalty in the pickup truck market – Automotive News: What does it take to get a truck owner to switch brands?
Cadillac’s next-gen Super Cruise system to address camera’s sunlight issue – Automotive News: The issue involves a critical part of the system that monitors the driver’s attentiveness.
Rakuten says to book $990 million gain on Lyft investment – Reuters: Japan’s Rakuten said on Monday it will book a 110 million yen ($989.74 million) gain in the quarter through March on its investment in Lyft following the U.S. ride-hailing firm’s listing last week.
GRAINS-Corn ticks up after deep cuts; abundant supplies cap gains – Reuters: China’s State Council said on Sunday that the country would continue to suspend additional tariffs on U.S. vehicles and auto parts after April 1, in a …
Porsche looking at subscription model for special models? – Autocar:
Nissan CEO, Ghosn Mulled Fourth Partner for Alliance, Email Says – Bloomberg: Last September, two months before his arrest in Tokyo, then Nissan Motor Co. Chairman Carlos Ghosn and the carmaker’s chief executive officer considered …
Rakuten to book $990m profit from Lyft IPO – Nikkei: … ($990 million) profit in its first-quarter earnings from a jump in the value of its stake in Lyft, after the U.S. ride-hailing company went public on Friday.

Lyft IPO Values Company at $24.3B

With Lyft going public, all eyes turn to Uber, which is expected to have its IPO on April. Photo via Lyft. Lyft became the first ride-hailing startup to go public, with its Thursday initial public offering valuing the company at $24.3 billion, Reuters reports. Lyft’s stock began trading on the Nasdaq today under the ticker… Continue reading Lyft IPO Values Company at $24.3B

A revived traditional brand: Borgward changes owner – and continues to torment himself

The idea had quite a charm, but was spiced with a pinch of Irrwitz: After decades of slumber, the car brand Borgward should resume from 2015 a revival in the turbo-pace. Finished financially for decades, the former Borgward boss Karlheinz Knöss sounded March 2015 opposite manager-magazin.de, An “affordable premium brand” was to become Borgward, by… Continue reading A revived traditional brand: Borgward changes owner – and continues to torment himself

As Lyft goes public, profitability is a long-term goal, not a near-term likelihood

Lyft beat Uber to the punch on Friday — the number-two ride hailing service in the U.S. was the first to go public, pricing shares ahead of the IPO at $72. The stock popped as much as 20% in the first minutes of trading, valuing the company at nearly $25 billion.

But Lyft is deeply in the red today, with a net loss of $911 million in 2018. During its road show, Lyft told investors that eventually, it expects to hit twenty-percent margins. The company just didn't say when.

A fierce competition

Uber, which is expected to go public next month, still commands greater market share than Lyft.

It offers rides on-demand in 65 countries and has a stake in Didi and Careem, which operate in Asia and the Middle East and North Africa, respectively.

Lyft is far behind Uber when it comes to coverage. In 2018, its geographic expansion focused on coverage in 95 percent of the U.S., and some new locations in Canada, filings ahead of its IPO disclosed.

Uber was also the first ride-hailing company to expand into services like food delivery and bike-sharing (via its acquisition of Jump in April 2018) which provide it with different revenue streams.

Lyft has been slower to diversify, although it has invested in other modes of transit as well. It bought Motivate in 2018, a bike-sharing company after Uber bought Jump, for example. It also offers scooters to riders looking for options beyond the car.

Lyft
Lyft has invested in other modes of transit including scooters and bike-sharing.

Uber is making plays in logistics with Uber Freight, short-hop air travel with Uber Air, and driverless taxis with its own autonomous vehicle division, Uber Advanced Technology Group.

Lyft is more focused, although it is starting book passengers into self-driving vehicles via a partnership with Aptiv. It hasn't talked about any plans for air taxis.

The race to profit

The next race will pit these ride-hailing players against each other in a quest for profitability, and the confidence of the public market investor.

D.A. Davidson senior vice president and research analyst Tom White says Lyft is doing well with some traditional sales and marketing efforts, and incentives that keep drivers and riders loyal to their platform.

Long term, he says, “There's the potential for autonomous vehicles and autonomous technology to basically reduce the amount of times Lyft has to pay a driver. And that could be a big, big lever for profitability.”

Uber's costly ambitions and lack of focus could challenge its path to profitability, he suggested. “One of the things we like about Lyft being a little smaller than Uber is the fact that they are more focused,” he said.

Lyft
Lyft says it has facilitated 35,000 rides in autonomous vehicles like this one

Head of research at Manhattan Venture Partners, Santosh Rao, told CNBC: “The macro market is good, IPO sentiment is good, so I think this is the right time to get out and they're doing the right thing.”

Others look at Amazon, which lost money for the first several years it operated as a public company, and Tesla, which has yet to record a profitable year, as examples of growth stocks that didn't always prioritize profits.

For those holding out to see an end to Lyft's losses before buying shares, one recent SIG report forecasts the company will become profitable…but it may take seven years.

WATCH:
Lyft begins trading on the Nasdaq at $87.24 a share

Watch the moment Lyft begins trading on the Nasdaq at $87.24 a share
1 Hour Ago | 02:20

Grab is talking to Ant Financial and PayPal about spinning out its financial services business

Grab, the $16 billion-valued ride-hailing firm that acquired Uber’s Southeast Asia business last year, is in talks with Alibaba’s Ant Financial and PayPal as it considers spinning out of its financial services unit to double down on its non-transportation business, TechCrunch has learned. The seven-year-old company’s coming-of-age moment was a deal to buy Uber’s regional… Continue reading Grab is talking to Ant Financial and PayPal about spinning out its financial services business

UPDATE 4-Lyft valued at $24.3 bln in first ride-hailing IPO

(Reuters) – Lyft Inc was valued at $24.3 billion in the first initial public offering (IPO) of a ride-hailing startup on Thursday, raising more than it had set off to do as investors overlooked uncertainty over its path to becoming a profitable company. Lyft’s IPO sets the stage for the stock market debut of larger… Continue reading UPDATE 4-Lyft valued at $24.3 bln in first ride-hailing IPO

SoftBank, Toyota JV partners Honda, Hino for self-driving venture

March 28, 2019 Honda Motor Co and truck maker Hino Motors Ltd will join a joint venture of SoftBank Corp and Toyota Motor Corp that aims to develop self-driving car services, the venture said on Thursday. Under an agreement, Honda and Hino, in which Toyota owns a majority stake, would each invest around 250 million… Continue reading SoftBank, Toyota JV partners Honda, Hino for self-driving venture

Tesla Hints At Semi Sales In China

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Published on March 21st, 2019 |

by Jennifer Sensiba

Tesla Hints At Semi Sales In China

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March 21st, 2019 by Jennifer Sensiba

During the recent unveiling of the Tesla Model Y, Elon Musk discussed the future Shanghai Gigafactory (Gigafactory 3). The Tesla Semi appears in renditions of the future factory. Was that just for illustration, or would the Tesla Semi be a good truck for the Chinese market?

The image above shows the Tesla Semis in the rendition of the Gigafactory. It took some zooming in and minor sharpening, but with their distinctive faces, the Semis are hard to mistake for other trucks. On the one hand, it could be possible that the Semis were included just for illustration and decoration, but the Chinese market might be a good fit for the Semi. It’s likely that Tesla would also sell the truck in that market. It certainly seems as though Tesla is planning to use the Semi for its own shipping needs. Indeed, Jerome Guillen, President of Automotive and head of the Semi program since the beginning, recently told CleanTechnica that Tesla was excited to use the truck first for company logistics.

Chinese Trucking Is Booming
Forbes explains just how powerful the industry is in China. It’s growing, and there are definitely growing pains. The market for medium- and heavy-duty trucks is over four times larger than in the United States. China’s economy is almost indescribably huge, and the inland areas being served by trucks is where much of the growth is.

This growth has, until recently, mostly been a local issue. Local truck builders serve local truckers, who make runs from their local area to and from larger manufacturing centers. The growth of e-commerce fuels growth in outlying areas, increasing the need for long-haul trucking. Now, Uber-like websites and apps are enabling independent truckers to find loads more effectively.

There is a broad variety of manufacturers with varying truck types available for sale.

The Chinese Government Is Responding To Environmental Issues
Look toward the edges of nearly any Chinese city, and you’ll find large parking lots filled with idling trucks, waiting for loads. The Chinese government is concerned about not only the congestion, but the emissions, which can be downright disgusting near larger lots.

In response, government officials are cracking down on overloaded trucks and requiring the purchase of newer, lower emission trucks to help reduce the issues. This may be a great opening for a Tesla Semi, but competition in that space will be stiff. BYD, already dominating the electric bus market inside and outside of China, is gearing up to be a big player.

It’s likely that the government will push for electrification of cargo trucking as part of its push to get rid of internal combustion sales entirely by 2040.

Lower Operating Costs Are Important
Despite arrests and crackdowns, Chinese truckers are protesting on and off. Driving trucks can be an incredibly difficult way to make a living in China. Work hours aren’t heavily regulated the way they are in the United States and other countries, and to make ends meet, some drivers are working for 24 hours and only sleeping for 4 hours. American semi trucks, with relatively large sleepers, are downright luxurious compared to the trucks Chinese drivers are using.

Between fuel costs, payments on trucks that had to be replaced, and stricter enforcement against overloading, truckers are taking home less and less. Many share small apartments with others in larger cities, and still don’t have enough to send home to cover the family’s bills.

A truck like the Tesla Semi could be a good fit here. Payments would be higher, but lower maintenance costs, lower fuel costs, and better safety systems could make a big difference. Enhanced Autopilot will not only help tired drivers stay in their lane and avoid collisions, but it would also safely bring the vehicle to a stop in the event a driver falls asleep completely.

Final Thoughts
While the Semi’s appearance in Musk’s slide might just be a fun illustration, the Chinese market is definitely a good fit for the Semi. It really boils down to whether Tesla wants to enter that market and whether the Chinese government will help support the transition.

About the Author

Jennifer Sensiba Jennifer Sensiba is a long time efficient vehicle enthusiast, writer, and photographer. She grew up around a transmission shop, and has been experimenting with vehicle efficiency since she was 16 and drove a Pontiac Fiero. She likes to explore the Southwest US with her partner, kids, and animals.

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Elon Musk just sent his second email this month to employees explaining Tesla’s store closure plan

Patrick T. Fallon | Bloomberg | Getty Images
Elon Musk, co-founder and chief executive officer of Tesla Inc., speaks during an unveiling event for the Tesla Model Y crossover electric vehicle in Hawthorne, California, U.S., on Friday, March 15, 2019.

Tesla CEO Elon Musk sent his second email to employees in a month to clear up confusion around its store closures, according to a copy of the memo viewed by CNBC.

The email says Tesla stores with high foot traffic and sales will remain open. It also says Tesla will open more stores if it thinks it can increase sales. Musk's memo also said customers will still have to buy cars from their phone or a computer, even if they do so in a store.

Tesla originally caused a stir with its February announcement that it would shift to online only sales. At the time, Musk confirmed this move would involve reducing the headcount in Tesla's sales and retail force. On March 10, Musk addressed employees directly in an internal email to all employees, saying its plans had changed and Tesla would “retain more stores than previously announced.” The company also published a blog post to explain its shifted mindset to the public, saying that upon review, it had decided to close fewer stores.

As a tradeoff, the company said, “Tesla will need to raise vehicle prices by about 3% on average worldwide. In other words, we will only close about half as many stores, but the cost savings are therefore only about half.”

In the latest email to employees sent Wednesday, Musk said he hoped to clarify some confusion around the new plans around retail locations.

“Stores with a high visitation rate and that lead to significant sales will absolutely not be closed down,” Musk said in the email. “It would not make any sense to do so, except in rare cases where the rent is absurdly high. Moreover, Tesla will continue to open stores throughout the world that meet the above criteria.”

He also cleared up some misconceptions around Tesla's decision to sell online only.

“What is meant by 'all sales will be online' is just that the act of purchasing a Tesla will always be done via the potential new owner's phone or computer,” Musk wrote.

Tesla was not immediately available to comment.

Read the full memo below:

From: Elon Musk
To: Everyone
March 27, 2019
Subject: Tesla Stores & Sales
There [is] still some uncertainty around Tesla stores and the sales team. Hopefully, this note clears things up. Please let me know if there is anything I've forgotten to address.
– Stores with a high visitation rate and that lead to significant sales will absolutely not be closed down. It would not make any sense to do so, except in rare cases where the rent is absurdly high. Moreover, Tesla will continue to open stores throughout the world that meet the above criteria.
– Stores that are in a location with low visitation rates (ie empty most of their opening hours) and lead to low sales will gradually be closed down. This is analogous to seeds on barren ground. There is no reasonable way to justify keeping such stores open.
– Stores that are somewhere in the middle will be evaluated over time to see [if] there is some way to allow them to cover their costs. If there is, they will remain open, otherwise not. However, these stores will be given a fair opportunity to prove their case.
The above principles also apply to the sales team. No one who is a major contributor to demand generation will be let go. That would make no sense. However, sometimes, in a company with 45,000 people, things happen that make no sense. I will do my best to remedy issues when brought to my attention directly or through emdesk@tesla.com.
What is meant by “all sales will be online” is just that the act of purchasing a Tesla will always be done via the potential new owner's phone or computer. This is true whether they are at home or in a store. Unlike buying from other carmakers, ordering a Tesla doesn't require any *physical paperwork*.
This is very different from normal expectations for buying from other carmakers and is simply meant to emphasize that ordering a Tesla is super easy and can be done in 2 minutes from your phone or laptop at Tesla.com. Ordering a Tesla is not much harder than ordering an Uber, but hardly anyone knows this!
However, many potential Tesla owners will still want to talk to a Tesla representative in person or want a test drive from a Tesla representative. Stores also have a small number of Tesla vehicles available to drive away immediately for customers that want a car right then and there.
This is why stores and Tesla product specialists and owner advisors will always be of critical importance to our long-term success.
Thanks,
Elon

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