Transportation

Instacart’s mixed bag has valuation opportunities

28 Aug 2023

The food delivery firm is worth far less than its high point in 2021. The cost to get new customers is rising, too. But a push to sell ads, a sensible business, could help bring its valuation close to $17 bln. As long as Instacart is reasonable, it can get its listing, finally.

CFOs are stepping into a rapidly revolving door

14 Aug 2023

From Alphabet to Tesla to Walgreens, finance chiefs are moving on at a faster rate than usual. One-tenth of the 1,000 largest US companies lost their CFO in the first half. Economic whiplash and expanded job duties are both factors. Higher turnover looks here to stay.

Capital Calls: Uber’s new task

11 Jul 2023

Concise views on global finance: Under boss Dara Khosrowshahi, the company’s departing finance chief helped deliver Uber’s original vision of dominating ride-hailing. His replacement can finish the job by dialing back spending and opening a spigot of cash flow.

Shipping tax could yield $100 bln climate windfall

12 Jun 2023

The industry emits almost 3% of the world’s greenhouse gases. It’s also largely escaped taxation. A levy on emissions would encourage shippers to go green, while raising money to help poorer countries. Key meetings in the next month are the time to push the idea, says Hugo Dixon.

Indian ports will test tycoons’ safe harbour

2 Jun 2023

Sajjan Jindal’s JSW is floating India’s second-largest commercial operator. It’s less profitable than Gautam Adani’s $20 bln business where auditor Deloitte is waving a flag. In a global industry with few listed giants, appetite for this small deal will deliver its own verdict.

Shippers turn the tank around too slowly

17 May 2023

Americans are pulling back on spending after their pandemic-era shopping sprees. That's perhaps good news for inflation, but bad news for the shipping business, which is set for its biggest capacity jump since at least 2016.  As demand cools, shippers can’t pivot fast enough.

India’s airline turbulence will be felt abroad

17 May 2023

Go is the second carrier to go bust since 2019 despite a booming $12 bln industry. Blame price wars and debt-fuelled expansion. The airline’s legal battle with foreign lessors like Sumitomo will be messy too. It will raise the costs on efforts to turn India into an aviation hub.

Lyft steers closer to an Uber-takes-all world

4 May 2023

Already far behind its bigger US ride-share rival, Lyft’s dismal profit forecast makes the difference even starker. And with Uber so much more profitable, each dollar of market share Dara Khosrowshahi snatches could boost his firm’s value by multiples of what his rival would get.

Bolloré sale brings Vivendi endgame a step closer

19 Apr 2023

Tycoon Vincent Bolloré may offload his logistics unit for $5 bln. That gives him firepower to buy out shareholders of his $12 bln media group Vivendi. Yet a full takeover may be costly, and the 71-year-old has other ways to tighten his grip. Betting on a big premium looks risky.

Capital Calls: Illumina’s odd bedfellows

3 Apr 2023

Concise views on global finance: The FTC’s order that Illumina unwind its Grail acquisition puts head commissioner Lina Khan on the same side as Carl Icahn. Khan opposes the deal because Illumina can raise prices, while the activist thinks the deal doesn't make sense.

Deutsche Bahn $16 bln sale has non-obvious endgame

24 Mar 2023

The German railways group may sell logistics arm DB Schenker for over $16 bln to cut debt. The most obvious fit is rival DSV. But selling to private equity or French shipping giant CMA CGM could mean fewer job cuts, which may be more appealing to Deutsche Bahn’s state owner.

GoTo is back to facing less existential problems

21 Mar 2023

The $8 bln Indonesian superapp may not need to raise capital in a hurry. It expects to reduce its cash burn by up to 65% this year. Cost cuts are paying off but hard questions on future growth and competition with its financially stronger Singaporean rival Grab remain.

Capital Calls: SVB found old concentration risk

10 Mar 2023

Concise views on global finance: The busted bank counted half of all U.S. venture capital-backed startups as clients. As with financiers to oil barons in the 1980s, monomaniacal focus on a booming industry is a way to court disaster.

America isn’t quitting gas guzzlers yet

3 Feb 2023

Despite tit-for-tat discounts in the electric market, GM and Ford wrung $6 bln of operating profit by increasing prices overall this quarter – and they don’t expect to give it up. It’s an indicator that, even after a banner year for EVs, the U.S. may be slow to give up trucks.

Europe’s autos have weak defences against China

1 Feb 2023

Carmakers like Stellantis and Volkswagen are facing greater competition on their home turf from Chinese rivals. Higher tariffs or government subsidies might soothe the pain, but could also prompt a backlash in the Middle Kingdom. And Europe may even welcome the competition.

Global supply chain scars will spark sea change

31 Jan 2023

The business of shifting goods around the world plunged into chaos during the pandemic. In this Exchange podcast Alan Murphy, boss of researcher Sea-Intelligence, explains China’s changing role in global trade and how that impacts the price of everything from iPhones to cars.

Virgin Australia IPO relies on Qantas flight path

20 Jan 2023

Bain Capital may relist the carrier it bought in 2020 as travel revives and rivals’ shares rally. Virgin could be worth $800 mln if it replicates the projected juicy margins and growth rates of its larger rival. If not, the private equity firm might wait in the departure lounge.

Capital Calls: BlackRock, Tim Cook’s pay

13 Jan 2023

Concise views on global finance: The asset manager edges closer to its Blackstone roots by expanding in private investments; compensation for Apple’s CEO re-enters Earth’s atmosphere.

Capital Calls: McDonald’s ex-CEO fine

10 Jan 2023

Concise views on global finance: The Security and Exchange Commission’s decision to slap former fast food chain boss Stephen Easterbrook with a penalty is a convoluted way to the right outcome.

Singapore looks boxed in with Li Ka-shing

9 Jan 2023

Co-investing with Hong Kong’s top tycoon once seemed like a no-brainer but sovereign fund Temasek may sell its 20% of CK Hutchison’s ports business. It owns a hefty slug of the company’s retail unit too. Geopolitics complicate any exit from these bold private investments.