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Fair, the SoftBank-backed car startup, lays off 40% of staff, sacks CFO

163 点作者 dcu超过 5 年前

21 条评论

high_derivative超过 5 年前
The reckoning may be still to come for various other Softbank-backed companies. Will just take a while for them to run out of cash.<p>For example, Improbable also got 500M from Softbank a few years ago, and makes 500k (!) revenue at a loss of 50M [0] and cost of revenue of 10M. It&#x27;s insane.<p>[0] <a href="https:&#x2F;&#x2F;uk.finance.yahoo.com&#x2F;news&#x2F;softbank-backed-gaming-startup-improbable-burns-50m-huge-cash-injection-131849943.html" rel="nofollow">https:&#x2F;&#x2F;uk.finance.yahoo.com&#x2F;news&#x2F;softbank-backed-gaming-sta...</a>?<p>edit: for anyone interested in the details, look at the most recent group accounts file here: <a href="https:&#x2F;&#x2F;beta.companieshouse.gov.uk&#x2F;company&#x2F;08070525&#x2F;filing-history" rel="nofollow">https:&#x2F;&#x2F;beta.companieshouse.gov.uk&#x2F;company&#x2F;08070525&#x2F;filing-h...</a>
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robert707超过 5 年前
Fair is probably done al la WeWork. Out of money, living a 25 million dollar loan from Softbank, and abandoning everything but their Uber rental product. The Uber product is the Xchange Leasing one they took over from Uber because Uber was constantly losing money on it. In exchange for taking over that Softbank had given Fair a pile of money that lasted just over a year. Now that is gone and Softbank is just trying to figure out how to keep a pale shadow of Fair alive because Uber needs those cars on the road.<p>This 40% came very hastily and was focused on product and eng. 4 weeks severance and no clarity on if you have benefit coverage during this. This was cutting for the sake of cutting, no clear consolidation of teams. Folks on the lots are expected to go in the next wave. Word is there is another 25 million out there Softbank will give Fair once Fair cuts enough overhead.<p>Also some suppliers haven&#x27;t been paid for months, some going back to July. At one point an irate supplier blocked the entries to the Irvine lot with his tow trucks until Fair paid at least some of the 700k they owed.
maxaf超过 5 年前
Setting aside SoftBank, let&#x27;s talk about Fair.<p>I&#x27;m a Fair customer, and I like the service, but I don&#x27;t think it&#x27;s a steal. It&#x27;s a fair deal (no pun intended), but by no means would I call it a ridiculous, out-of-this-world deal.<p>Surely some fellow New Yorkers will remember the good old days of the Uber-Lyft price war, when it was possible to travel from the low 90-s &amp; York to the low 80-s &amp; Columbus for $2 on an Uber Pool. Or how during the morning rush an Uber Pool would take one from the UWS to FiDi for about $5. Those were unimaginably good deals because they were heavily subsidized by the VC cash that was flowing so easily into rideshare companies and out the other end into riders&#x27; wallets. Those were the days!<p>Fair is nothing like that. I pay $266&#x2F;month for a 2018 CPO Honda Accord that I received with 2k miles and most of its original warranty. I reckon this costs me about 15-20% more than a dealership lease of a brand new car. I consider this a fair (...) premium for the flexibility that a Fair lease affords me: I can end it at any time without undue shenanigans, whereas a traditional lease would require me to either transfer it or pay an early termination fee.<p>Why is this important? With Fair I don&#x27;t feel as if some hapless VC is subsidizing my use of the vehicle. The whole thing feels like an actual business with assets and employees and some kind of plan, not a reckless gamble for market share that in itself is worth nothing to begin with. It all makes a certain kind of cold sense: when you browse Fair&#x27;s app for a vehicle, the cars you see aren&#x27;t actually on Fair&#x27;s balance sheet until the lease has started. Since their prices aren&#x27;t too good to be true, my gut tells me that, at the very least, they have a spreadsheet somewhere that spits out the price they should charge a customer after having quantified the risk of this customer ending the lease before its break-even date, thus saddling Fair with the car for which it now has to pay out of its own coffers.<p>SoftBank being SoftBank, it&#x27;s possible that Fair is one of its better bets.
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tomnipotent超过 5 年前
There was a post here a little awhile ago from Fair Eng. team that mentioned how they _saved_ hundreds of thousands annually on their AWS ES bill through some change or another.<p>Hundreds. of. thousands.<p>I couldn&#x27;t fathom a situation where they needed that much hardware to return some car listings. Even if you had every car in the world in their database (~1 billion) at ~10k&#x2F;doc, that&#x27;s only 10GB of data. And how many people could possibly be looking to rent&#x2F;lease a car at any single time? So between two pretty guessable ceilings (data size + traffic) it was red flags everywhere.
jsemrau超过 5 年前
The demise of Softbank seems largely exaggerated [1]. While surely some investments are struggling, overall the company seems still to be in good shape.<p>[1] <a href="https:&#x2F;&#x2F;www.japantimes.co.jp&#x2F;news&#x2F;2019&#x2F;08&#x2F;07&#x2F;business&#x2F;corporate-business&#x2F;softbank-groups-quarterly-profit-jumps-%C2%A51-12-trillion-highest-recorded-japanese-firm&#x2F;" rel="nofollow">https:&#x2F;&#x2F;www.japantimes.co.jp&#x2F;news&#x2F;2019&#x2F;08&#x2F;07&#x2F;business&#x2F;corpor...</a>
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ausjke超过 5 年前
Softbank&#x27;s boss is a world famous investor.<p>Looking back, the only bet he won big is Alibaba, the rest are either lukewarm, or disaster.<p>Statistically, he is probably worse than ordinary people like us as far as investing goes, the difference only lies in that he has guts, he can call the shots no matter what. Other than that, he is probably no better than anyone else here?<p>he is a good business man for sure, that&#x27;s why he collected his first bucket of gold, but a good investing guy? to me not so at all.
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servercobra超过 5 年前
I interviewed with them a few months ago. The guy who interviewed me was super nice and really smart, but the company&#x27;s business model seemed really odd. It was some sort of arbitrage on cars with dealerships owning most of the stock and trying to guess when the best time to sell the car as used was. Plus they had this belief there was some customers who wanted something between ZipCar&#x2F;rental cars and a traditional lease, which I found dubious. I can see wanting one year leases, but below that seems like a pretty tiny market. I&#x27;m not surprised they&#x27;ve mostly switched to focusing on Uber.
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rax0m超过 5 年前
A result of the zombification of the japanese economy. The BOJ is buying stocks on all of these zombie companies to keep them alive and this is what you get.
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malandrew超过 5 年前
Kind of a shame that all the comments are focused on Softbank here and no one is discussing Fair. I know what HN generally thinks of Softbank. What I want to know is what HN thinks of Fair and this layoff.
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0xADADA超过 5 年前
SoftBank is that saddad that keeps lending his dirtbag son money, the son blows it all on lotto cards and shit food at Mohegan Sun, and then begs for more money.<p>It&#x27;ll blow up soon.
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scurvy超过 5 年前
Given the recent issues they&#x27;ve had with other portfolio companies, I wonder if the C suite moves were based on family ties that Softbank didn&#x27;t like. Seems like a lot of upper management at Fair were related to each other.
flog超过 5 年前
Well that explains why their money-down price jumped from $500 to $5000 within the last couple of weeks.
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lefstathiou超过 5 年前
I think companies that over raised too soon are facing a reckoning.
piterdevries超过 5 年前
Isn&#x27;t car subscription called leasing?
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tus88超过 5 年前
&gt; another startup is taking a proactive step to get ahead of the story, by cutting costs and restructuring before public opinion forces the issue on them.<p>I thought the proactive approach was to get bought out by Facebook? And that was the entire goal all along...not to make an actually viable business.
kolanos超过 5 年前
Softbank Vision Fund looks like a Saudi money laundering scheme to me.
xenihn超过 5 年前
There&#x27;s some juicy stuff in the recent Glassdoor reviews.
tempsy超过 5 年前
Really curious how OpenDoor is doing. They&#x27;ve raised a ton from SoftBank as well.
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gentle超过 5 年前
Good riddance.
MaupitiBlue超过 5 年前
Whatever happened to f’edcompany.com?
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helpPeople超过 5 年前
So the bubble is bursting from tech? Or is there an international crisis causing this?
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