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Three other SoftBank portfolio companies are relevant for the future of mobility. First up, ARM, the UK-based chip designer SoftBank acquired for $32B in 2016, is making significant efforts to boost its traction in the automotive space. Second, data sharing between vehicles and the rest of the ecosystem is going to grow many folds, creating a potentially significant market for 80%-owned US telco Sprint. Last, the fund led a $121M round in Light, which now is trying to gain traction in the autonomous driving space with its multi camera vision system. 

 

 

SoftBank the Rainmaker

With stakes seemingly in the 15-30% range, SoftBank is a position to play an active role in the direction its portfolio companies take, bringing about synergies or reducing competitive pressure in certain geographies. The conglomerate has the ability — and the apparent intention — to restructure the global competitive landscape. This is likely what happened when Uber sold its Southeast Asian operations to local ride-hailing leader Grab against a 27.5% stake in the Singapore-based platform, just a few months after SoftBank’s first investment in Uber. 

 

Another example of this directed consolidation is Didi’s acquisition of Brazil’s 99, both having received significant funds from SoftBank. This was shortly before the fund’s first bet on Uber, the local market leader. For memory, Uber had sold its Chinese operations to Didi in 2016 against a 15-20% stake in the Chinese company — which in turn invested $1B in the American platform.

 

SoftBank also drives synergies among portfolio companies. Fair acquired Uber’s own fleet of 30k vehicles in 2018, allowing each party to focus on their core businesses. As part of the deal, Fair became the ride-hailing platform’s exclusive leasing partner for US drivers looking for a car to drive. In a similar fashion, it was recently reported that Uber and Nuro are discussing the use of the latter’s autonomous vehicles to deliver Uber Eats meals.

 

 

Partnerships with incumbent Japanese mobility players

Even though SoftBank is investing around the globe, they have not forgotten their Japanese roots, collaborating with Toyota and Honda. Toyota first put money in Uber in 2016 — i.e., before SoftBank did — and just injected anther $1B in Uber ATG (the R&D division) jointly with SoftBank and auto supplier Denso. The OEM has also invested in Grab ($1B) and GetAround ($300M), like SoftBank.

 

The partnership with Toyota runs deeper. Last year, the two companies founded Monet Technologies, a 50.25% /49.75% JV focused on ride-sharing and self-driving car tech. The JV aims to launch mobility services using the OEM’s e-Palette vehicles by the second half of the 2020s. Honda and Hino recently joined the pair. Together, they will first collect mobility data.

 

Similarly, Honda invested in Grab shortly after SoftBank did in 2016, and committed $2.75B in Cruise, again shortly after the fund did.

 

 

Investors and Investments 

SoftBank’s Vision Fund was established two years ago with $100B, $45B of which provided by Saudi Arabia's Public Investment Fund. Other investors include: Abu Dhabi’s sovereign fund Mubadala ($15B), Apple, Foxconn, Daimler, Qualcomm and Sharp. Thanks to its deep pockets, the fund can sometimes pump more money into a company than its founders initially expected to raise — the minimum check size is apparently $100M per deal. The fund has been reported to have threatened startup execs to invest in a competitor if they don’t accept SoftBank’s  money and demanding conditions. Founders are pushed to pursue international expansion and growth at any cost.

 

It seems hard to resist to SoftBank’s money. However, this is just what Ola reportedly did, turning down $1.1B for fear that the largest investment may lead to a forced sale of the Indian platform to Uber. SoftBank is probably the most powerful and controversial tech investor. But it is designed to serve Masayoshi Son’s long term goal, "We will create a company that can grow, 300 years down the road.”