How long can investors tolerate a startups' cash burn rate?
What does Uber's recent deal with China's Didi Chuxing mean for the Indian market?
Economic Times comments "A few were conspicuously speechless — Ola, the India market leader and rival to Uber, and Ola's main investor SoftBank. Two sources that ET spoke to also believe that Didi Chuxing and Uber may have signed a non-compete agreement for international markets. "It is likely that a clause for Didi to not compete with Uber in markets outside China or not finance any competition further is a part of the deal," said one of them. Another said that under the terms of the pact, Didi cannot directly operate in markets Uber is present in, which means that in India it can invest a little more in Ola (its stake is in the single digit percentage) but cannot be the single-largest owner."
Is Uber Feeling the Cash Burn in India? How long can investors tolerate a startups' cash burn rate?