E-commerce

SoftBank’s stalled Indian sale defies logic

6 Jul 2017

Indian e-commerce firm Snapdeal rejected a $850 mln bid from rival Flipkart. That's well below a peak valuation of $6.5 bln, so backers like the Japanese firm will suffer. But buyers are scarce, and the price will only go down. Holding out for a unicorn-style $1 bln is a mistake.

Alibaba readies for showdown in Southeast Asia

29 Jun 2017

The Chinese giant spent another $1 bln to tighten its grip on regional arm Lazada. The extra control could be useful as Alibaba confronts local upstarts, domestic peer JD, and possibly Amazon in the future. All will face formidable challenges, from logistics to payments.

Sale of Singapore’s GLP seems to stack up

23 Jun 2017

Buyout firms are boycotting an auction they think favours insiders, the FT says. That is embarrassing for the $10 bln warehouse giant and top backer GIC. But GLP appears to be playing it straight. Securing a full price for shareholders would draw a line under the matter.

Viewsroom: Helping Uber hail a new CEO

22 Jun 2017

Filling departed founder Travis Kalanick’s seat is no easy task, so we offer some suggestions. Elsewhere, Amazon CEO Jeff Bezos’ seemingly crazy $13.7 bln offer for struggling grocer Whole Foods has some logic. Anbang lands in hot water in China. And the lure of 100-year debt.

Food IPO to deliver Rocket Internet relaunch

19 Jun 2017

Germany’s struggling tech investor is on the cusp of its first startup listing. The cash that it will pocket if fast-growing food logistics group Delivery Hero meets its aim of raising $1 billion will come in handy. The morale boost from a successful exit is even more important.

Amazon’s one-click deal keeps Wal-Mart at bay

19 Jun 2017

The $230 bln superstore chain's stock fell 5 pct on news of the e-commerce giant's $14 bln purchase of Whole Foods. The target's shares rose above Amazon's offer, implying another bid might emerge. But a defensive effort from Wal-Mart or a worried rival looks a financial stretch.

Amazon buys its way to the top of the food chain

16 Jun 2017

The e-commerce titan is going whole hog for U.S. groceries with the $13.7 bln acquisition of Whole Foods. Amazon's comfort with low margins and savvy in logistics make it a fearsome rival. The purchase price pales compared to the value the deal just chewed up across the industry.

Jack Ma’s data ambitions get investor green light

9 Jun 2017

Investors rewarded Alibaba with another $41 bln in market value after the e-commerce giant unveiled startlingly optimistic revenue growth forecasts. It's a powerful vindication of Ma's forays into AI and cloud technology. Expectations for Alibaba to deliver are higher than ever.

Blue Apron offers tasty food, nauseating numbers

2 Jun 2017

The meal-kit delivery firm that's going public serves up delicious meals and sales growth. But look closely at the ingredients. New-customer acquisition costs are surging, they're ordering less and competition is fierce. Like Groupon, the product is fine, the stock best avoided.

Wal-Mart’s online therapy may revive ailing retail

22 May 2017

Embracing e-commerce sparked a turnaround at the behemoth, while stocks plummeted at internet laggards Macy’s, J.C. Penney and others after poor sales. The industry’s online revenue is set to grow 70 pct by 2021. Stragglers risk ceding yet more business to Wal-Mart and Amazon.

Alibaba’s $6bln buyback disrupts financial reality

18 May 2017

Repurchasing shares will offset dilution from paying staff in equity, the Chinese e-commerce giant says. Only, buybacks don’t do that as they leave companies with less cash. Alibaba is replacing one pretence – that investors should ignore stock-based compensation – with another.

Amazon is prescription for pharmacy woes

17 May 2017

The internet retailer has set its sights on the $300 bln business of selling drugs to U.S. customers. Regulation and delivery concerns are barriers. Yet these, and the inefficiency of U.S. healthcare, also promise lucrative earnings for a company happy with razor-thin margins.

TPG gets crafty on Etsy investment from buyout fund

16 May 2017

David Bonderman’s investment firm has taken a 4 pct stake in the $1.6 bln online marketplace. A few funds are poking around while Etsy shakes itself up. But passive equity stakes aren't TPG's core competence. With LBOs hard to find, managers will test their creativity.

Amazon well of web profit may gush a bit slower

27 Apr 2017

The online giant’s retailing arm shredded rivals in the first quarter, and investors cheered a 41 pct increase in earnings. Yet web services, lately a seemingly limitless source of revenue, showed decelerating growth. It could be that rivals are finally sipping from the firehose.

Online retailers betray limits of the internet

18 Apr 2017

Websites like Amazon and furniture seller Made.com are opening physical showrooms so punters can look before they buy online. Being footloose remains better than having old retail’s cost bases. But the new entrants wouldn’t be hiking their own expenses if they didn’t have to.

India’s tech poolside is running out of sunbeds

10 Apr 2017

Tencent, eBay, and Microsoft are piling into Indian e-commerce with a $1.4 bln investment in Flipkart. Japan’s SoftBank already backs local rival Snapdeal. Attractive as India is, having so many global tech groups rubbing shoulders ensures not everyone will get what they want.

Bezos’ rocketing wealth fuels space ambitions

6 Apr 2017

The Amazon founder is selling $1 bln of stock a year to finance his dream of colonizing space. Both he and his company can afford it. The firm’s dominance in cloud computing has added $25 bln to his worth in the past year. With a trajectory like that, the sky is not the limit.

Asos takes costly fashion cues from Amazon

4 Apr 2017

The UK online clothes retailer has raised sales forecasts on international demand. But Asos is becoming pricier to run: six-month costs rose 38 pct, more than the group's top line. Asos is investing prudently, but a rich valuation leaves it exposed to web-based competition.

Dubai mall owner throws sand in Amazon’s face

27 Mar 2017

Emaar Malls has challenged the U.S. retailer with an $800 mln counterbid for Souq.com. Amazon has technical expertise and deep pockets. But the owner of Dubai’s largest retail park has local knowledge, powerful allies and, most importantly, an existing business model to defend.

SoftBank and Alibaba have Indian tangle to unpick

22 Mar 2017

A potential merger between Snapdeal and Paytm would take Masayoshi Son and Jack Ma off the warpath in India, where their flagship companies, SoftBank and Alibaba, have invested in the rival e-commerce unicorns. Such a truce would save investors money in the long run.