The latest, preliminary deal to invest as much as $10 billion in Uber Technologies Inc. is part of SoftBank Group Corp.'s long-term strategy to tap on the expansion of online platforms for transportation, the Wall Street Journal wrote on Monday, citing unnamed sources. Deals to obtain stakes in the largest ride-hailing businesses in the United States, China, India, Southeast Asia and Brazil are pieces of the bet of founder and chief executive Masayoshi Son on the future of the segment of the car market where ownership will become obsolete, according to people familiar with the matter.
The head of the online industry giant has been speaking about changes in the next three to five decades, which isn't typical for venture vehicles like SoftBank's Vision Fund. The potentials of automation have drawn it to purchase almost 30% in ANI Technologies Pvt., the owner of Ola, for instance. The article notes the dream of a global network will have to overcome the obstacles in the target companies' plans, like those related to Didi Chuxing's acquisition spree around the world.
The internal competition in the sector as well as from technology powerhouses such as Alphabet and Toyota are also significant challenges. The Japan-based conglomerate has holdings in Grab Inc. and 99 in Brazil, and has taken over startups including ARM Holdings Plc.
