SoftBank Mobility Strategies, 2030

SoftBank Mobility Strategies, 2030

With $268 Billion in Equity and a $100 Billion Vision Fund, the Conglomerate will Leverage AI to Become a Powerhouse of the Automotive and Connected Living Environment

RELEASE DATE
16-Dec-2020
REGION
Asia Pacific
Research Code: K493-01-00-00-00
SKU: AU02089-AP-MT_25050
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Description

SoftBank, with its $100 billion Vision Fund, has created the biggest investment cycle in history and has given start-ups a head start to launch their technology. Investments are focused on futuristic technologies such as artificial intelligence (AI), the Internet of Things, and mobile applications across various sectors. AI will play an important role in auto technology is the central theme of SoftBank’s investment strategy. SoftBank has invested in all of the key technologies that will constitute the future mobility ecosystem, ranging from fintech and health tech to heavy logistics.

The automotive sector is the biggest investment segment for Vision Fund, with more than 40% of the total raised capital. SoftBank’s $33 billion investment in auto tech has dwarfed all of the capital funds in the automotive industry, making it biggest fund size of all the time; shared mobility and mobility-related services constitutes more than 50% of the invested capital. SoftBank is either the biggest shareholder in regional shared mobility companies or is present through Uber. The controlling stake in ride sharing competitors has allowed SoftBank to drive consolidation in this space, resulting in the emergence of local leaders. Uber, Didi Chuxing, Fair, Grab, and Ola have secured some of the biggest investments from SoftBank, which enabled them to expand their business geographically, invest in product development, and acquire start-ups complementing their business. SoftBank invested billions of dollars so these companies flourish without going public for a long time. These strategic investments are expected to reinforce the company’s plan of building one player per sector per region, thus controlling the root of modern technology living.

SoftBank has also invested in connected and self-driving vehicle technologies. The company has partnered with Toyota to form a joint venture called MONET, whose objective is to bring together SoftBank’s IoT technologies and Toyota’s autonomous vehicle platform to enable on-demand services such as mobility, logistics, and sales starting in Southeast Asia. Toyota’s E-pallet vehicle’s modular interior design will facilitate its use for various services such as mobile food preparation and shuttling people and packages.

However, some of its decisions have become classic examples of governance failure. In 2019, SoftBank had the biggest loss in operating since its inception. The loss came from its Vision Fund and Delta Fund, which had falling value of some of the portfolio companies such as WeWork , Slack, and Uber. This loss from Vision Fund also led to SoftBank group recording its first financial loss in 15 years, Vision Fund lost $16.7 billion, which led to a stock price decline of 3.2% for SoftBank. The current statistics for SoftBank investments are not as expected, and the company is also facing pressure from limited partners to improve return on their investment. SoftBank is expected to take the lessons from these incidents and redesign strategy to maintain its position.

This study aims to highlight the current place and importance of SoftBank in the automotive industry. The study focuses on SoftBank’s current and future investments in auto tech companies. It also looks into some of the major companies backed by SoftBank and highlights consolidation happening among these, and analyzes the potential of SoftBank to become one of the major influencers in automotive strategies. The study also states the challenges pertaining to SoftBank's operations and the impact on the automotive industry.

RESEARCH: INFOGRAPHIC

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Table of Contents

Key Findings

Overview of Automotive Investments by SoftBank

SoftBank Turning Auto Tech Unicorns into Decacorns

SoftBank Driving Mergers and Acquisitions in Shared Mobility

What SoftBank Investment Means to the Automotive Industry

How SoftBank Wants to Control the Future of Mobility

Challenges

COVID-19’s Impact on SoftBank’s Investments

Research Scope

Research Aims and Objectives

Key Questions this Study will Answer

Research Background

Research Methodology

SoftBank’s Corporate Structure

Vision Fund 1.0

Vision Fund 1.0 Investment Portfolio

SoftBank’s Financial Performance

Overview of Automotive Investments by SoftBank

SoftBank’s Automotive Investment by Region

SoftBank’s Influence on Global Shared Mobility

SoftBank—Driving Force Behind M&As in Shared Mobility

MONET for On-Demand Mobility as a Service Platform, 2030

How SoftBank Wants to Control the Future of Automotive

SoftBank’s Biggest Investments in Auto Tech—Uber Case Study

SoftBank’s Biggest Investments in Auto Tech—Didi Chuxing Case Study

SoftBank’s Biggest Investments in Auto Tech—ARM Case Study

SoftBank’s Biggest Investments in Auto Tech—Grab Case Study

IPO Timeline of SoftBank’s Auto Investments

SoftBank’s Investments in Artificial Intelligence

Vision Fund Current Portfolio and Future Investment Opportunities

Challenges

Vision Fund 1.0 Portfolio Performance

Vision Fund 1.0 Financial Overview

Vision Fund 1.0 Global Investment

Latin America Innovation Fund

Vision Fund 2.0

Future Venture Capital Funds, 2021–2030

Growth Opportunity for SoftBank

Strategic Imperatives for Success and Growth

Conclusions

The Last Word—Three Big Predictions

Legal Disclaimer

Market Engineering Methodology

The Vision Fund 1.0 Business Model

SoftBank’s Equity Value of Holding Companies

Automotive Venture Capital Firms Comparison

SoftBank and Connected Living

List of Abbreviations

List of Exhibits

List of Exhibits (continued)

SoftBank, with its $100 billion Vision Fund, has created the biggest investment cycle in history and has given start-ups a head start to launch their technology. Investments are focused on futuristic technologies such as artificial intelligence (AI), the Internet of Things, and mobile applications across various sectors. AI will play an important role in auto technology is the central theme of SoftBanks investment strategy. SoftBank has invested in all of the key technologies that will constitute the future mobility ecosystem, ranging from fintech and health tech to heavy logistics. The automotive sector is the biggest investment segment for Vision Fund, with more than 40% of the total raised capital. SoftBanks $33 billion investment in auto tech has dwarfed all of the capital funds in the automotive industry, making it biggest fund size of all the time; shared mobility and mobility-related services constitutes more than 50% of the invested capital. SoftBank is either the biggest shareholder in regional shared mobility companies or is present through Uber. The controlling stake in ride sharing competitors has allowed SoftBank to drive consolidation in this space, resulting in the emergence of local leaders. Uber, Didi Chuxing, Fair, Grab, and Ola have secured some of the biggest investments from SoftBank, which enabled them to expand their business geographically, invest in product development, and acquire start-ups complementing their business. SoftBank invested billions of dollars so these companies flourish without going public for a long time. These strategic investments are expected to reinforce the companys plan of building one player per sector per region, thus controlling the root of modern technology living. SoftBank has also invested in connected and self-driving vehicle technologies. The company has partnered with Toyota to form a joint venture called MONET, whose objective is to bring together SoftBanks IoT technologies and Toyotas autonomous vehicle platform to enable on-demand services such as mobility, logistics, and sales starting in Southeast Asia. Toyotas E-pallet vehicles modular interior design will facilitate its use for various services such as mobile food preparation and shuttling people and packages. However, some of its decisions have become classic examples of governance failure. In 2019, SoftBank had the biggest loss in operating since its inception. The loss came from its Vision Fund and Delta Fund, which had falling value of some of the portfolio companies such as WeWork , Slack, and Uber. This loss from Vision Fund also led to SoftBank group recording its first financial loss in 15 years, Vision Fund lost $16.7 billion, which led to a stock price decline of 3.2% for SoftBank. The current statistics for SoftBank investments are not as expected, and the company is also facing pressure from limited partners to improve return on their investment. SoftBank is expected to take the lessons from these incidents and redesign strategy to maintain its position. This study aims to highlight the current place and importance of SoftBank in the automotive industry. The study focuses on SoftBanks current and future investments in auto tech companies. It also looks into some of the major companies backed by SoftBank and highlights consolidation happening among these, and analyzes the potential of SoftBank to become one of the major influencers in automotive strategies. The study also states the challenges pertaining to SoftBank's operations and the impact on the automotive industry.
More Information
No Index No
Podcast No
Author Shruti Pathak
Industries Automotive
WIP Number K493-01-00-00-00
Is Prebook No
GPS Codes 9673-A6,9800-A6,9883-A6,9889-A6,9AF6-A6