The Singapore market, be it taxi driving or mobile phone, is really a
very small market. Once you have two or 3 players, it would be saturated
with the market share split by the few players. Why would Go Jek be so
keen to enter the market after Uber and Grab, that have already been
acquired? The answer is in the mobile phone business model. There was
once only one operator with 100 percent market share. Then they opened
up the market under the so called open leg policy, liberalization, to
allow Uber and Grab to come in, in the mobile phone market they allowed
M1 and Starhub to come in. And as expected, the market share was split.
The once only one operator then strangely realized that its market share
was diluted by the new operators. This was bad and it needed to regain
its market share, the whole market share. So what should it do? Buy up
the new operators offering them a Singapore Premium to divest their
investment in Singapore. And lo behold, the only one operator now had
regained all its market share again, albeit after coughing out hundreds
of millions of OPM. And the new operators took their prize money, pat
their backsides, and laughed all the way to the bank.
Go Jek is jumping in, likely to follow this same successful formula. All it
needs is to gain market share, even if at a loss. It would only need to
hold on for a few years for the one and only operator to wake up to
realize that its market share has been diluted again. And in panic mode
it would decide to buy up Go Jek at a premium. And Go Jek would happily
give up everything to exit the market, with a huge Singapore Premium.
The only and only operator would again have the whole market share.
Why is this possible? Very simple. When one is holding a lot of OPM and
needs to invest to be seen to do something, and if one has no idea on
how to start a business, the easiest and most convenient way to show
some results is to buy up another apparently successful company with a
tested business model. The Singapore entrepreneurial story is about
buying businesses without having to start one. It is not easy to start a
new business and to be profitable when one has no idea how to start a
business, without any business experience except some text book
knowledge or knowledge from irrelevant industries or occupation.
After Uber and Grab, here comes Go Jek. And soon Go Jek will come to
pass. And Go Jek will not be the last corporate raider in this sense.
Many will come, to set up companies waiting to be bought over. Any
company will do, no need high tech or high thinking. Kopitiam also can.
The next target will be the share bike business. Some clever business
entrepreneurs without entrepreneurial experience are eagerly waiting on
the sideline, waiting for the right moment to buy up the bike sharing
business, and pay the standard Singapore Premium to go with it. And the
bike sharing companies could happily exit the market and laugh all the
way to the bank, pocketing the OPM that has no owners.
This is Singapore’s entrepreneurship and entrepreneurial business model to buy and run a business.
Why invite outsiders to come in to steal a market share and then to buy it back?
Rb, Knn lar, very depressed after reading your article
ReplyDeleteThe more the merrier, but in the end it will all end up with one monopoly for each category, controlled by you know who. Singtel, NTUC comfort, NTUC income, NTUC Foodfare will all be the eventual beneficiary.
ReplyDeleteIt is all about inviting competition on the surface, to show the world how freely is our economy, when everyone can come in and set up business so easily. But can they last for long? How long did Obike last?
What and how they did it with healthcare, public transport and early childhood education will give you an idea of what to expect. It is all free competition, but behind that everything ends up and is still in the hands of the powers that be.
Why did they make it such? First, responsibility is pushed out of the Government's hand when things go wrong. Second, the Government will deny having any say with any escalation of price increases. Third, Sinkies love wayangs, so the powers that be staged them. But they still want total control behind the scene.
The final analysis - you want it, they let you have it, you have to live with it!
My main concern is how public money is wasted unnecessarily in such musical chairs.
ReplyDeleteI only worry when government don't waste public's money..))
ReplyDeleteEven if they waste not, they still want more. We bragged about how much we have in reserves, but the Government still tells us we need more money, so GST, insurance premiums etc has to go up.
ReplyDeleteWhen the Government gives even drumsticks and lollipops, someone has to pay, like healthcare for the elderly for example. So, when the Government gives, people know for sure they have to run and beg for mercy. How ironical!
What they did not waste, they will still gambled away, lose big and who is going to pay? It is great to be the Government when there is other people's money to play around with.
We voted for it, we have to live with it.
I'm not very business minded person so I could not very well understand your thoughts above, though I read it twice. IMHO it takes some one with business experience to figure it out. It seem to make sense. I worry that the paper army generals running Singapore today are dumbfuck like me too no experience in setting up business, in the end we lose everything kena fucked still dunno later blame the citizens while they continue laughing all the way to the bank, because there is no accountability in Singapore anymore, under Pinky.
ReplyDeleteHey man, it's a 5 billion $ company, also one of the "darlings" of the new economy.
ReplyDeleteI say, try and see what happens. All the speculation and theory doesn't matter squat, until (pun intended) the rubber hits the road. All this stuff is new. Some will succeed, some won't. Bike share looks like its a bust. That doesn't mean someone couldn't make a "version 2.0" successful.
The "private money vs public money" argument doesn't really apply in Singapore, especially to infrastructure and things like healthcare and transport. The govt runs the show, and to them there is no distinction...it is just MONEY---they'll get it any which way and how. You might not like what I just wrote, but I doubt you can find an cogent argument to tell me that I am wrong. The govt is the biggest player in The Market (check to see the number of govt linked/ backed/ owned public companies on the SGX) and that's that.
Anyway, people need to get from A to B, and from B all the way up to Z. Small market? Perhaps. But it is CONCENTRATED in a small area. And remember tjhe population will increase 10-20% by the time the young kids are grown up.
As I've mentioned to Redbean before...look out, the wonderful expensive govt is working hard for their money. You'll see more "new ideas" come to the fore. Don't need to believe me. You can write me off as "full of shit". Then, just shut the fuck up and OBSERVE and EXPERIENCE for yourselves. 🤣😂. And yes, your taxes are going up too.
Huat ah? Meritocracy lah!🤓🤑
Matilar u are damn right and that depressed me further. Knn really spoil my day. Hope u Kena sodomized today.
ReplyDeleteEh, no need depress lah. The REAL shit hasn't even started yet. 🤡
ReplyDeleteI refused to get depressed by things I have absolutely no control over. But I can change. Why is Singapore a "hotel" to me?
Because a bunch of cunts "stole" my cuntry, and no one gave a shit. When I opened by loud mouth, I was scolded and insulted. (no problem lah, me thick skin). Now I hope people see the truth. But sadly, not enough and not soon enough.
What to do? Nothing. What not to do? Get depressed.
Anyway, getting depressed in Singapore is not a good idea. Why? Because no one will "sayang" you. Better do anything to not be depressed. Go for a run with redbean 😜 Move the body lah. Then go and have wild, dirty sex. I guarantee you won't be depressed anymore by the fucking PAP.
Stupidity plus greed of incompetent leaders who make decisions meant daft Sinkies are being screwed again and again and again, no ending.
ReplyDeleteUnless the dafts pulled up enough courage and senses, the unscrupulous manipulations to generate more income and benefits for the tiny group of elites, in collusion with the filthy sneaky rich, will continue.
Another NSF died during training AGAIN! What has Board of Inquiries done to prevent unnecessary deaths of NSFs, who are most often the ONLY SON in a family?
ReplyDeleteI think all of you still cannot see my simple point in this silly business model.
ReplyDeleteIn the beginning there is only one player with the whole market share. In the end, also one player, but after paying off the other players invited in to take a share of the market that should not be allowed in in the first place.
If they don't allow other players to come in, they would have the cake and eat it, the whole market share. Why invite others to take a part of the market share then to buy back the market share and pay through the nose for it? This paying other players or so called buying out is a total waste of money that should not happen at all. The money could have been saved.
Did I make myself clear?
This comment has been removed by the author.
ReplyDelete@ 104
ReplyDeleteNo matter what you do, you are not going to stop people engaging in military activities from dying or getting hurt. The military is a dangerous place and does dangerous things. Some people will die.
It's mathematical.
The Warren Buffet of Singapore Hojinx Investology is to buy high & sell low, sell nation assets at discount n buy foreign assets at premium, create fake diversification, ....Sencond to none. From Micropolis to Steakhouse...its citizens OPM where got sweat. Not bull, not bear but pigs. Slaugther no problem, its only OPM. My rewards is secret. Hahaha
ReplyDeleteAh Bock & Ah Yang lim kopi....Ah Loong ke ka lau sai.
ReplyDeleteAh Ling joined in lim kopi.....Ah Jinx also lau sai.
Ah Yang is no paper general. Good move.
Matilar, easy for u to say cause u only got daughters some more for u to screw only. Other people got sons, so they worry after going to NS, may be don't come back mah? U really need your treatment lar. That is to be sodomized today lor
ReplyDeleteSham meritocracy in sinkingpoor...lim boon hengie zero fund mgt experience can be chairman tummysick fund co. Paper generals no zero experience can run glcs as ceos. Smrt ceos also paper general or salesgirl friend of hojinx. Hojinx loss $600mln at micropolis darnatbarlan said most qualified. Meritocracy.....hahaha....deception lah. President indian become malay zero fund mgt experience can check gic accts? Hahaha...sham lah. Meritocracy...siowcratocracy.
ReplyDeleteLHL - 38 Oxley Road remain?
ReplyDeleteLHY/LWL - 38 Oxley Road demolished?
LHL LHL LHL.
Who demolished old national library building ah?
TCB and LHY so li hai, ownself play investment and employ native Singaporean at $5000 do simple job or cut rubber tree lah. Still waiting.
But than again, election time should I stay at home?
@ RB,
ReplyDeleteFollow the money bro. 💰🤑
Why not Lyft or Ola? Why Go Jek? I would guess several reasons.
1. They are a "darling" for the new tech universe. Look at their partners. Microsoft, Google, Chinese company and...KKR aka Kravis, Kohlberg & Roberts...a private equity partnership with a killer 30-40 yr track record.
So do you think our Sovereign Hedge Fund can resist not being part of this "action"? Of course not.
2. Save money? Please lah.😜 Why should they save OPM? Save your own money lah. OPM is for spending lah, to make more money... but if lose, nevermind...not your money what? 🤣
3. Competition or Diversification, or just plain greedy?
You know that Coke & Pepsi are rivals, Apple's Mac competes with Microsoft's Surface...but as a stock picker there is no reason you can't own competing rivals...if it makes financial sense, to YOU.
If Temasek "saves Other People's money" it could be missing out. Go Jek appears to be expanding in Asia, that's why they're raising cash. Lots of it. It's their war chest. Plus, there's always "opportunity" to pump in some of those CPF funds...which no one will be getting back anytime soon anyway. (Aiyoh...sore point izzit? 😝)
My take on all this:
I don't believe a goddamn GOOD thing about any company reported and dressed-up in and by the MSM. This is the financial world. If you dun "caveat emptor", eventually you will require emergency surgery to stop haemorrhaging to death from a bleeding anus. You'd be one of the lucky ones. Most people just bleed to death.
How many times have we seen and heard "Oh good company, good investment. Wah, look at the stock price! Buy lah...quick... Sure make one lah! Huat ah!!", only to find soon enough people screaming in pain, for "justice", haemorrhaging from their asses.
There was LTCM, WorldCom, Enron. How about a few local examples? Gemini Chit Fund or as redbean calls it Cheat Fund. Pan Electric, 1MDB, CLOB, Barings Bank (UK), Lehman MiniBonds, Keppel Brazil...and of course our well-known CPF. These are all financial failures, some by fraud and theft, or malfeasance, or recklessness...but all with one thing in common: those who EXPECTED to get their money, DIDN'T.
When there's finance/ money involved, expect shit to go wrong.
Multi-billion dollar Indonesian company ah...wah, you trust the MSM ah? Fuck them...I most certainly DON'T.🤣
Caveat Emptor!
@ 428
ReplyDelete>> Matilar, easy for u to say cause u only got daughters some more for u to screw only. Other people got sons, so they worry after going to NS, may be don't come back mah? <<
Mate, that is not an argument. I think your depression is getting the best of you. I think before you hand out advice, you need to seek medical attention. 😂
BTW, it still doesn't change the HARD COLD FACT OF REALITY, that: there is a distinct possibility of severe injury or death during any form of military activity.
>> so they worry after going to NS, may be don't come back mah? <<
Emotions like "worry" serve no purpose except make people feel worse. NS is not new. It's a national INSTITUTION. Sometimes the sons don't come back. That's a fact. I've had to recover 1 dead NS man when I was in during the 1970s. It was not nice experience and gave me nightmares. You have to realise that Singaporeans support the idea of NS, and so if you are born with dick and balls, off to camp you go! 😱
KNN Matilah, you dumb or what?
ReplyDeleteInvesting in Go Jek like the other big guys is one hell of a thing.
Allowing Go Jek to come into this small market like Grab and Uber or Starhub and M1 is totally different. Looks like I did not make myself clear or you are too stupid to understand what I was saying.
Running a taxi operation under whatever guise is till running a taxi business. Using rocket science is a complete waste of technology with very little additional returns.
Say in the village you have only one kopitiam. You doing good business, 100% market share from 1000 customers. Then you stupidly allow 2 IT guys to set up shops to sell kopi differently and eat up your market share. Then stupidly you want your market share back, all 1000 customers. So you pay the two guys $10m to take over their businesses so that you can sell to 1000 customers, now using 3 kopitiams, yours and the two from the IT guys. Your customer base is still 1000 customers. And you are now poorer by $10m.
How stupid can you be? You could continue to serve the 1,000 customers without the 2 new kopitiams without losing your $10m. The 1,000 customers would still spend so much for their kopi with 1 or 3 kopitiams.
Understand or not?
@ RB
ReplyDeleteOf course I understand. But it ain't MY money, so I don't really give a shit if Mdm Ho Hedge Fund screws up (again), and the whole thing ends in an epic pile of SHIT! 🤣
Like I said, this is the financial world, which you too know all about. You tell me lah...how many instances of dumb-assery have you seen?
Go Jek or Grab might fail due to---in your words---small market. And you might think it's insane they're giving up a virtual monopoly they already captured.
Obviously, they don't agree with you lah.
I think it's you who doesn't understand. But not your fault. Who can understand what Mdm Hedge Fund does?
Anyway, we only know what the MSM published. No one knows what back room dealings are.
I'll repeat myself: when it comes to finance, banking...shit involving many parties and lots of money, I don't trust anyone, any news reports, any financial reporting, compliance... zero, Nada.
The more the news tells me how good the deal is, the more skeptical I get.
Can I download the android app call taximeter for all?
ReplyDeletePaint my car with words Ho Ching Private Hire Car?
Than I stop at taxi stand pick up passenger?
Than I just collect cash from passenger?
Maintenance I will choose my own workshop?
Like that no one owe anyone a living, will make my genes better, than the kids I pop out will not be so strawberry?
Plus remove army?
Maybe the economy will boost, my idea is so good, gst become 0, I can become prime minister? My party will call Ho Ching Party. HCP. Ho is good, Ching is money $$$ Ching Ching Ching, it is a very good money party. Singapore Singapore Singapore Singapore. Baris Sedia. Everyone tears will drop like last time?
I can assure even there is 100 kopitiam/100 taxi company. 1000 customer will only belong to Ho Ching Private Hire Car.
KAKAKAKAKAKAKAKAKAKAKAKAKA. Pop Corn anyone?
UG I am afraid that if you really try, then u will definitely be invited to Lin Kopi then Kena detained for questioning under bright light 24X7. Then when u think they off the light and u can take a rest, sorry man, u are in a room with two sex hungry African Tua Kee who will pound on you and u Kena sodomized till your ass break. Don't laugh as they are two Tua Kee, they won't spare your mouth either and the silly action of trying to cover your mouth won't work with two strong Tua Kee Lar. God bless😀
ReplyDeleteVirgo49 November 05, 2018 8:44 am
ReplyDelete// ....now LHY who are ex PAPies Teams do not when earlier seen to go against their own.//
“煮豆燃豆萁，豆在釜中泣
本是同根生，相煎何太急!"
Legendary poem by Three Kingdom era Prince Cao Zhi, younger son of Cao Cao and younger BRO of King Cao Bi, who succeeded Cao Cao.
Uncle Redbean, good morning.
ReplyDeleteRead somewhere before in your MSN that you offer ad hoc help to students with GP.
Need your take/ answer on one simple yet perplexing qn.
Can help?
Matilah, I agree with you on one point. You dunno where the money flows and ended up in whose pockets. Make money, lose money, someone still makes money. Who is that someone?
ReplyDelete@ RB
ReplyDeleteI’m not going to teach a finance guy like you how to suck eggs. But the basic equation for accounting is not “wrong” but UNREALISTIC 😮
We all know:
ASSETS = LIABILITIES + EQUITY
But my version is:
ASSETS = LIABILITIES + EQUITY + MyShare
MyShare is where the money goes. To what or whom “MyShare” is has a huge spectrum of variety...and I just leave it up to “human creativity” to happen. 😜
There is huge incentive to “makan” part of the Asset value. It is a no-brainer. Every fast-operator in any market will sooner of later try to “makan”, these are very hungry sharks! 😛
Even if asset values fall, MyShare is still there. Whether it is Collateralized Debt Obligations, Mortgage-Backed Securities, stock, ...the MyShare people always get paid...even when the assets go down the toilet.
Anyway, I leave it there lah. Temasek is in-charge. I have permanent exit plans in place just in case. In the meantime, I’ll continue to enjoy and luxuriate in Singapore’s rocking awesomeness. Hope you all do too. 🇸🇬🇸🇬🤓
658am anonymous
ReplyDeleteNot me try. Someone on top go make it happen if it is a good idea. Because RB is talking about 1000 customer 1 koptiam or 3 kopitiams. LKY dont own everything in Singapore? There is so many different taxi company also.
Old leaders like TCB or LHY how rich ah? They got buy our power plant? Did they buy a lot of private properties and create their own charity for those that fall thru cracks because those policy dont apply to them? The old leaders are sleeping ah?
Pussy-Grabing Dotard Trump got trounced in the US Mid-Term Elections. The Democrats regained the House of Representatives with a wide margin. Republicans managed to only retain the Senate with 3 seats majority.
ReplyDelete