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August, 2016

  • ~ by Charmaine Mirza

    “…you cannot ignore a fifth of the world’s population…as an entrepreneur, if you have the opportunity to build both Amazon and Alibaba at the same time, you’d be crazy not to try.”

    Travis Kalenick, CEO Uber.

    Is Uber’s unicorn cowboy trying to do precisely this?

    As the date for its hyped up IPO draws closer, investors are questioning whether the unicorn will be a rainmaker – or be reined in.

    On the surface, it appears as if Kalenick has sacrificed his Alibaba genie for the Amazonian advantage. After losing two billion USD initially in a head to head battle with Chinese rival Didi Chuxing, Uber has “closed” its China operations, a move that investors see as positive, given the losses it has racked up – but will it turn the tide completely for Uber’s global push?

    Inchin Closer reviews the situation from an Asian perspective.

    • Is Uber moving out of China or simply taking a strategic side-step that may light its candle at both ends – for its US IPO, and its Chinese market share?
    • Is Didi a friendly investor or a dragon crouching in the shadows, waiting for the right moment?
    • Is Uber really being bought out, as it claims, or buying in?

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  • gst-mainIn a landmark amendment to the Indian tax regime, India’s upper house or the Rajya Sabha passed the Goods and Services Tax bill which streamlines and simplifies taxes for the entire country. In effect, the GST brings India, a US$2 trillion (£1.5tn) economy with 1.3 billion consumers, into a truly single market. “No country of comparable size and complexity has attempted a tax reform of this scale,” Harishankar Subramanian, of Ernst and Young told the BBC.

    The GST bill which had been pending in parliament for a few years, finally got passed allowing companies to regulate their taxes between India’s 29 states better. The new bill will upgrade India’s tax system on par with 21st Century companies needs, enabling Asia’s third largest economy a strong tax regime going forward. It will therefore ensure businesses can expand nationwide. Freight trucks will now be able to move quickly across India, rather than spending hours idling at multiple checkpoints filling in forms and making tax payments when they travel between states.

    Additionally, the overall tax rate is expected to come down, from its current rates. News reports peg the GST rate at between 15 percent and 18 percent. “If you add all the taxes together, today this is almost 27-32 percent… With GST coming in say at 18-19 percent zone… that is still a difference of 8 percent to 10 percent. Large part of that will eventually get passed on to the customer,” Ashish Goel, co-founder and CEO of online furniture retailer Urban Ladder, told NDTV Profit.

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  • kfcYum Brands is undergoing a strategic shift in China, signaling towards changing market trends and slowing revenue. The brand under which KFC, Pizza Hut and Taco Bell operate decided to spin off its China business into a separate entity last year. As part of the realignment, CEO China of Yum Brands Inc Muktesh Pant sold 91,228 shares of Yum on the 22nd of July, for US$8.2 million.

    The Indian born CEO, of Yum China led the China entity to be the company’s highest profit earner. At the end of February 2016, Yum had over 5,000 KFC restaurants in China, accounting for a quarter of KFC restaurants worldwide. It also held more than 1600 Pizza Huts, in more than 400 cities and had acquired Little Sheep hot pot due to burgeoging demand in the Fast food space.

    However, as tastes changed – being healthy came back into vogue and the the brands faced backlash due to their involvement in International uprisings, the Yum brand faced sever criticism in local media resulting in a fall in revenue. Although China remains the company’s primary source of profit the company’s revenues fell from US$ 6.898 billion in 2012 to US$ 6.909 billion in 2015. The latest performance report shows that in the first half of 2016, Yum clocked revenues of US$ 5.627 billion, down 1.75 percent.cheap bns goldbuy bns gold

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