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India’s Taxi War: Uber vs. Ola

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8 years ago

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India's Taxi War: Uber vs. Ola

India’s Taxi War: Uber vs. Ola

In the cities where Uber is permitted by municipalities to operate, the ensuing battle is typically between the massive tech giant and the local taxi companies. However, in India the competitive landscape is much different: a domestic tech company has an early head start with a soaring market share. In this case, for Uber, the stakes couldn’t be much higher.

India is the second most populous country in the world, but it is expected to surpass China as early as 2022 in this category. More importantly, the country will surely be an economic powerhouse and a center of global growth in the foreseeable future. India does have its challenges, but in a previous chart we showed that it will rival China for overall economic growth in the coming decades.

So who is bold enough to challenge Uber for the massive Indian rideshare market?

That company is Ola Cabs and so far it has raised five rounds of funding, with the most recent being for a hefty $210 million in October 2014. The company was founded in 2010 by Bhavish Aggarwal and provides 750,000 daily rides in the Indian market. Ola also recently acquired a major domestic competitor (TaxiForSure) for a sum of $200 million in cash and stock.

So far, Uber has committed $1 billion from investors to ensure its dominance in India, but currently the company only brings in about 200,000 daily rides. Uber has six years of experience of winning these types of battles: against Lyft, against local taxi companies, in courts, and in the public relations sphere.

India’s size and fragmented transit system also means that there could be room for two or more rideshare companies to co-exist in the future. Since ridesharing is still in its infancy in the market, there is plenty of room to still grow for both companies: but the battle could be heated.

Lastly, for fun: here’s a graphic comparing Uber’s size in major markets against the legions of all taxi companies operating:

Original graphic by: Tech in Asia

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Ranked: America’s Largest Semiconductor Companies

This graphic visualizes the market capitalizations of America’s 15 largest semiconductor companies.

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4 days ago

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June 5, 2023

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Ranking America’s Largest Semiconductor Companies

As our world moves further into an era of widespread digitization, few industries can be considered as important as semiconductors.

These components are found in almost everything we use on a daily basis, and the ability to produce them domestically has become a topic of national security. For example, in 2022 the Biden administration announced the CHIPS and Science Act, which aims to strengthen America’s position in everything from clean energy to artificial intelligence.

With this in mind, we’ve ranked the top 15 U.S. semiconductor companies by their market capitalizations.

Data and Highlights

The data we used to create this infographic is listed in the table below. Year-to-date (YTD) returns were included for additional context. Both metrics are as of May 30, 2023.

RankCompanyTickerMarket Cap (USD billions)YTD Return
1NvidiaNVDA$992180.2%
2BroadcomAVGO$33545.1%
3AMDAMD$20295.7%
4Texas InstrumentsTXN$1608.2%
5QualcommQCOM$1298.2%
6IntelINTC$12512.2%
7Applied MaterialsAMAT$11541.2%
8Analog DevicesADI$899.2%
9Lam ResearchLRCX$8552.1%
10Micron TechnologyMU$7842.3%
11SnyopsysSNPS$7145.4%
12KLAKLAC$6321.8%
13Marvell Technology GroupMRVL$5476.2%
14Microchip TechnologyMCHP$4211.2%
15ON SemiconductorON$3636.3%

At the top is Nvidia, which became America’s newest $1 trillion company on Tuesday, May 30th. Shares pulled back slightly over the day and Nvidia closed at $992 billion. Over the past decade, Nvidia has transformed from a gaming-focused graphics card producer to a global leader in AI and data center chips.

In third and sixth place are two of America’s most well known chipmakers, AMD and Intel. These longtime rivals are moving in opposite trajectories, with AMD shares climbing 770% over the past five years, and Intel shares falling 47%. One reason for this is the data center segment, in which AMD appears to be stealing market share from Intel.

Further down the list we see Applied Materials in seventh, and Lam Research in ninth. Both firms specialize in semiconductor manufacturing equipment and thus play an important role in the industry’s supply chain.

Trade War Impacts

As tensions between the U.S. and China escalate, chipmakers are becoming increasingly entangled in geopolitical conflict.

In October 2022, the Biden administration introduced new export controls aimed at blocking China’s access to semiconductors produced with U.S. equipment. This impacted several companies in our top 15 list, including Lam Research and Applied Materials.

Shortly after the export controls were announced, Lam Research said it expected to lose upwards of $2.5 billion in annual revenues.

We lost some very profitable customers in the China region, and that’s going to persist, obviously.
– Doug Bettinger, CFO, Lam Research

In response, China announced in May 2023 that it would no longer allow America’s largest memory chipmaker, Micron, to sell its products to “critical national infrastructure operators”.

This is not the first time Micron has been involved in a controversy with China. In 2018, the firm alleged that Fujian Jinhua Integrated Circuit, a Chinese state-owned company, had solicited a Micron employee to steal specifications for memory chips. The U.S. Department of Commerce imposed export restrictions on Fujian Jinhua as a result.

Chipmakers on both sides of the Pacific will be closely watching as competition between these two countries heats up.

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