SoftBank has used competing rideshare investments to increase valuations by convincing its portfolio companies to stop costly fighting. Perhaps they expect to have a similar need once self-driving companies are also competing for rides.
There are funds that invest in a wide portfolio of energy companies, or other markets. It's making a bet on self driving cars without picking winners. I suppose it is picking incumbents generally, but that's hard to avoid.
I dunnno if it's a good strategy, but it's not an ilogical one.
I beg to differ. In Southeast Asia for example, Softbank invested in both Uber and Grab, the two of its biggest ride sharing companies. Having leverage in both, Uber then was shut down in favor of Grab ultimately eliminating competition. Doesn't seem like a weird investment strategy at all.
And how has that turned out for everyone? Are customers happy? Has it led Grab to be profitable now? Is Softbank getting returns for their billions of Uber AND Grab investments or do they have to invest even more billions?
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Is Softbank just going to invest in every self-driving startup? That seems like a really weird investment strategy.
SoftBank has used competing rideshare investments to increase valuations by convincing its portfolio companies to stop costly fighting. Perhaps they expect to have a similar need once self-driving companies are also competing for rides.
Sounds dangerously like a trust.
Why Wierd?
There are funds that invest in a wide portfolio of energy companies, or other markets. It's making a bet on self driving cars without picking winners. I suppose it is picking incumbents generally, but that's hard to avoid.
I dunnno if it's a good strategy, but it's not an ilogical one.
At least one guess is that this helps Softbank increase the value of its other investments in Uber: https://www.bloomberg.com/opinion/articles/2019-03-14/don-t-...
I beg to differ. In Southeast Asia for example, Softbank invested in both Uber and Grab, the two of its biggest ride sharing companies. Having leverage in both, Uber then was shut down in favor of Grab ultimately eliminating competition. Doesn't seem like a weird investment strategy at all.
And how has that turned out for everyone? Are customers happy? Has it led Grab to be profitable now? Is Softbank getting returns for their billions of Uber AND Grab investments or do they have to invest even more billions?
VCs invest in competitors all of the time in order to hedge risk. It only takes one to 10x and make it worthwhile.
In unsaturated markets, the increased buzz of competition also helps with growth.
It's not any weirder than buying an index fund.
Don't index funds generally spread across more than one type of business? At least to a broader category.
Nah, its probably a consolidation strategy