Transportation

Uber, Lyft grease driver’s pockets with surcharge

29 Mar 2022

The ride-hailing firms added a 55 cents per-trip surcharge to offset a 50% spike in fuel prices. That should cover the bump in gas and then some. Both firms are competing in a tight labor market, so it’s a start. But they may find they have to open their wallets, too.

Uber NYC cab deal turns lemons into lemonade

24 Mar 2022

The ride-hailing app is partnering with New York City taxis to make them available on the platform as a surge in gas prices threatens Uber’s ability to recruit drivers. Demand for rides is stepping up too. Joining forces with a once-bitter rival may help smooth the road.

Hong Kong’s Star Ferry deserves tycoon lifeline

18 Mar 2022

Lockdowns have put the Victoria Harbour icon into dire financial straits. Local moguls like family-controlled parent Wharf group are keen to help the city through tough times. Keeping the boats afloat would preserve a slice of history and provide some hope for the future.

Capital Calls: White House embraces digital dollar

9 Mar 2022

Concise views on global finance: President Joe Biden was initially lukewarm about the United States issuing its own cryptocurrency, but the financial fallout from Russia’s invasion of Ukraine has forced his hand.

Electric-car companies face test of endurance

1 Mar 2022

Lordstown and Lucid shares sank on disappointing estimates of how many cars they will be able to produce. Where it was once enough just to show that making a car was possible, electric-vehicle hopefuls must now prove they can make many, while squeezed by supply challenges.

Stellantis’ forward push faces winding road

1 Mar 2022

CEO Carlos Tavares vowed to double the carmaker’s sales to 300 bln euros by 2030. It’s a bold pledge, helped by a drive in finance and data. Yet to fix the Jeep-manufacturer’s depressed valuation, investors need proof Tavares can tackle its challenges in China and battery rides.

Canada’s trade risks go beyond bridges to America

23 Feb 2022

Trucker protests paralyzed a key border route, exposing the country’s reliance on its largest trading partner. But Canada also suffers from internal barriers between its provinces and territories. Removing those could boost the economy, if local protectionism can be overcome.

Tesla can build cars, but culture may be harder

11 Feb 2022

The environmental promise of boss Elon Musk’s vision necessitates rapid growth. Managing a workforce expanding 42% annually, though, brings new risks for leaders more used to disrupting social and governance norms than upholding them. Lawsuits from workers hint at the problem.

Capital Calls: ABB’s car chargers, Airport M&A

10 Feb 2022

Concise views on global finance: The Swiss engineering group’s listing plans come at an unfortunate moment; Britain’s John Menzies takes a risk with rejection of “opportunistic” approach from Kuwaiti air services group NAS.

Uber looks like a tech stock in the worst ways

9 Feb 2022

The ride-hailing firm is expected to grow sales rapidly. But that isn’t coming easy – or cheap - and the valuation is now in line with Netflix. As investors decide to look more closely at the fundamentals of tech darlings, Uber has more troubling attributes than the good ones.

Shipping news makes grim reading for central banks

9 Feb 2022

Logistics giants Maersk and DSV expect another bumper year due to high freight rates. Their guidance suggests transport costs are unlikely to fall to pre-pandemic levels even if ports unclog. That will make life harder for rate-setters as they seek to curb high inflation.

Ford split idea rolls back the odometer

4 Feb 2022

Tesla’s valuation makes contemplating a breakup tempting for Ford, and boss Jim Farley even sounds open to it. But its EV business is intertwined with combustion, which still lags crosstown rival GM. Plus Delphi shows how separating linked car businesses can go wrong.

Lithium squeeze could short-circuit electric cars

1 Feb 2022

Automakers like GM battling the chip shortage face a bigger problem down the road. The price of metals in electric-car batteries is soaring as demand outpaces supply. With even market leader Tesla feeling the bite, the electric revolution looks further off – and less lucrative.

Tesla hits speed bump but with improved suspension

26 Jan 2022

Elon Musk’s electric-car maker’s revenue increased 65% in the fourth quarter. Like rivals it’s battling higher costs and parts shortages, but unlike them it has a 31% gross profit margin as a buffer. Even if the market shifts down a gear, that ought to help it remain in front.

Capital Calls: TCI’s railroading tactics

26 Jan 2022

Concise views on global finance: The fund run by Chris Hohn has settled with Canadian National after a messy battle for the board.

Ferretti float may be back in same boat

24 Jan 2022

After a bold $1.2 bln valuation target sank its Milan IPO effort in 2019, the Italian yacht maker owned by China’s Weichai is now sailing for Hong Kong. Growth is buoyant, but luxury goods have charted a patchy course on Asian bourses. It’ll be hard, again, to make a splash.

The Exchange: Xpeng boldly goes

18 Jan 2022

The Chinese electric-car maker has navigated everything from shrinking subsidies to Covid-19. Embracing new ways of working is critical, President Brian Gu tells Katrina Hamlin. Future forays into Europe, the metaverse and flying cars will test the Tesla rival’s resilience again.

Former Uber rival flags down SPAC business model

11 Nov 2021

Gett, once a ride-hailing hopeful, is reinventing itself as a platform to help big companies manage their taxi bills. Merging with a U.S. blank-cheque firm brings cash to pursue the switch. A less shiny $1 bln valuation leaves some room for disappointment.

Russian IPO is carsharing model’s crash test dummy

1 Nov 2021

Delimobil, which is listing in New York, maintains a fleet of 18,000 cars for short trips. It’s fast-growing and EBITDA positive, helped by municipalities offering cheap parking. Its model can accelerate in richer countries, but only if taxes make owning a car too expensive.

Ford shareholders hit the accelerator too hard

28 Oct 2021

The $61 bln carmaker reinstated its dividend, boosted its earnings outlook and even overtook GM by revenue. That’s all good news, but doesn’t justify the after-hours share rally that widened the valuation gap with its larger rival. Ford is still losing the profit margin race.