:00:15. > :00:21.Not for hire. After pulling out of Taiwan we find out what's next for
:00:22. > :00:25.Uber. And it's the Holy Grail of
:00:26. > :00:27.prime-time advertising, the Super Bowl, but is the $5 million pricetag
:00:28. > :00:39.worth it? Hello and welcome to Asia Business
:00:40. > :00:44.Report, I'm Sharanjit Leyl. Uber will exit Taiwan this week. The
:00:45. > :00:48.car booking company is calling it quits after a lengthy battle with
:00:49. > :00:54.the government there. Uber faced massive fines, which reportedly
:00:55. > :00:58.totalled 35 in US dollars after Taiwanese authorities raised fines
:00:59. > :01:03.for drivers caught working for unlicensed transportation services.
:01:04. > :01:07.In Taiwan, Uber is registered as an information services company.
:01:08. > :01:11.Earlier I spoke with the general manager for Uber in Taiwan and he
:01:12. > :01:12.said the fine was among the highest imposed.
:01:13. > :01:20.We haven't received any new fines today but I can confirm the fines
:01:21. > :01:25.right now are the highest in the world, which leaves very little room
:01:26. > :01:30.for innovation going forward. The focus for us is really now that the
:01:31. > :01:35.bill has passed, what is the right regulation framework looking like?
:01:36. > :01:38.We believe there should be a pattern and we need to sit down with
:01:39. > :01:42.government to do that. Have you got a meeting scheduled with the
:01:43. > :01:46.government? We are very eager to meet with the government and we're
:01:47. > :01:50.doing everything we can in our power to make those arrangements happen.
:01:51. > :01:54.The key question now is the government supportive of the concept
:01:55. > :01:57.of ride sharing in Taiwan? Interesting you mention whether the
:01:58. > :02:02.government is supporting the concept because according to the Taiwanese
:02:03. > :02:06.transport authority they say Uber is registered as an information
:02:07. > :02:09.services provider. But what you're doing is providing transportation.
:02:10. > :02:14.Does the government do you think have a point?
:02:15. > :02:19.Uber is a ride sharing company, we like to be registered as such. I
:02:20. > :02:22.think the issue is there's no regulations for right sharing in
:02:23. > :02:27.Taiwan because the concept itself has come around only in the past six
:02:28. > :02:30.or seven years when right sharing companies like ourselves started.
:02:31. > :02:33.The question now is if the government does believe in the
:02:34. > :02:37.concept of ride sharing, we're more than happy to work with them in
:02:38. > :02:42.terms of finding the right types of regulation for companies like
:02:43. > :02:48.ourselves. Briefly, getting out of Taiwan, short-term or permanent?
:02:49. > :02:51.I think we certainly hope we can resume operations as soon as the. I
:02:52. > :02:57.think this pause is something we feel will alleviate pressure but we
:02:58. > :03:00.do believe that the president has a mandate to improve technology and
:03:01. > :03:06.economic development and we think ride sharing fits in well with that.
:03:07. > :03:10.The biggest sporting event in the United States is under way. We are
:03:11. > :03:15.of course talking about the Super Bowl, the Championship game in
:03:16. > :03:19.American football which, last year, attracted 111 million viewers. I can
:03:20. > :03:24.tell you that today we are still seeing the Falcons, the underdogs,
:03:25. > :03:28.they are beating the New England Patriots at the moment. It's a big
:03:29. > :03:34.eel, the Super Bowl, because advertisers are spending an average
:03:35. > :03:40.of $5 million for a 32nd commercial -- big deal. Some of Asia's most
:03:41. > :03:44.recognisable brands are getting into the game and here's a sneak peek of
:03:45. > :03:54.the highly anticipated Super Bowl commercials.
:03:55. > :04:03.I'm just curious... Puyol services still apply if I'm not technically
:04:04. > :04:07.on a road or land -- do your services.
:04:08. > :04:16.Machines don't have emotions. But the rare few can inspire them.
:04:17. > :04:19.Some of the commercials that Super Bowl viewers will get to watch.
:04:20. > :04:24.Earlier I spoke with James Walton, who manages the sports business
:04:25. > :04:27.group at Deloitte and I asked him if companies splurging on the Super
:04:28. > :04:32.Bowl ads will be getting their money back? The actual cost is even higher
:04:33. > :04:37.than $5 million because $5 million just buys you space on TV. On top of
:04:38. > :04:41.that you have to pay for the production of a world-class advert,
:04:42. > :04:45.which is around $1 million, and in this day and age you also have to
:04:46. > :04:50.put out on social media and build other advertising spend as round two
:04:51. > :04:55.well. Recent studies suggest the cost of a Super Bowl campaign is
:04:56. > :05:00.closer to $10 million. For that you're getting access to the largest
:05:01. > :05:04.TV audience of the year in the US. In fact the last seven Super bowls
:05:05. > :05:09.have been the seven highest TV programmes of all time, you're
:05:10. > :05:13.getting 110 million viewers also. There's still a feeling that perhaps
:05:14. > :05:18.it has peaked now because this year they were still selling some of
:05:19. > :05:21.these advertising slots as recently as last week, which is the first
:05:22. > :05:26.time that's ever happened. Fascinating you have these big Asian
:05:27. > :05:32.names taking part, the likes of Nintendo with their new Switch games
:05:33. > :05:37.console, Toyota, Lexus and Kia as well. Why is it so crucial for the
:05:38. > :05:44.Asian and co is to be there? Most of these Asian companies have been
:05:45. > :05:49.there before. Nintendo is the is the only one for the first time, Hyundai
:05:50. > :05:55.went all the back, way back to the 1980s and is a sponsor of the NFL at
:05:56. > :05:59.the moment. They see this TV audience represents a big
:06:00. > :06:02.opportunity for them. Last year Toyota pushed hard on their previous
:06:03. > :06:09.hybrid and they ended up selling over 3.5 million units as a result
:06:10. > :06:13.of the campaign. They feel this is clearly an opportunity. The one time
:06:14. > :06:16.of the year when people actually watch the adverts and everyone
:06:17. > :06:21.gathers around the TV, this is your one chance to make a big impression.
:06:22. > :06:26.You mentioned social media, everyone thought TV advertising is more or
:06:27. > :06:30.less dead because this is the other big opportunity for lots of
:06:31. > :06:34.advertisers. Tell us about the scourge of social media, will it
:06:35. > :06:38.obliterate TV advertising in the future? It is definitely affecting
:06:39. > :06:41.because companies only have a certain amount of marketing spend
:06:42. > :06:45.and you have to decide where you're going to put that and social media
:06:46. > :06:49.is another channel to take that but the best companies at the moment are
:06:50. > :06:53.the ones working out how to use traditional and modern media in
:06:54. > :06:57.tandem. There's a lot of drumbeat campaigns even around the Super Bowl
:06:58. > :07:01.where companies are releasing their adverts early, doing teaser
:07:02. > :07:05.trailers, buying up a lot of advertising space on social media
:07:06. > :07:09.around the time of their TV advert and combining the two pieces
:07:10. > :07:14.together for the whole experience. On a day like today, it is estimated
:07:15. > :07:17.around 60 million people will talk about the Super Bowl on Facebook as
:07:18. > :07:22.well as watch it, so that represents an opportunity as well. James Walton
:07:23. > :07:26.from Deloitte. Were into the third week of President Trump the's
:07:27. > :07:30.administration and so far we've heard tough talk on trade and
:07:31. > :07:35.threats of import taxes against the auto sector. Research house, less
:07:36. > :07:39.says if the president goes ahead with his campaign promise of
:07:40. > :07:43.imposing higher tariffs on Chinese products they could make it tough
:07:44. > :07:50.for Chinese mobile handset makers to do business in the US.
:07:51. > :07:59.We understand that it is already very hardfought Petronius Marveaux
:08:00. > :08:02.business to get into the US. It's a very complicated market and you need
:08:03. > :08:09.strong relationships with the carriers like the horizon or AT --
:08:10. > :08:13.hard for Chinese handset makers. -- the horizon. With Donald Trump you
:08:14. > :08:19.have the possibility of higher tariffs. With that thread on Chinese
:08:20. > :08:23.products, it could create a problem for them because their products are
:08:24. > :08:28.more expensive and what is happening is will people want to buy more
:08:29. > :08:32.expensive products? No. Obviously it will make it hard for them but is
:08:33. > :08:37.the US market even worth it? We know it is an incredibly saturated
:08:38. > :08:43.market, you've got huge leaders like Apple with the iPhone and Samsung.
:08:44. > :08:49.So why bother? The key to the US market is that it is not a market of
:08:50. > :08:53.volume like India or China itself, the US market is the crown jewels of
:08:54. > :09:00.all smartphone markets as we know it. It's the market of high-value.
:09:01. > :09:07.That is worth it for the smart phone vendors to go into the US, to
:09:08. > :09:08.displace Apple, to displace Samsung and gain market share from them to
:09:09. > :09:17.gain a very high-value market. The Chinese capital, Beijing, aims
:09:18. > :09:21.to cut the use of coal by 30% this year to battle against air
:09:22. > :09:25.pollution. According to the state news agency the government will get
:09:26. > :09:30.more aggressive this year and help residents of 700 villages make use
:09:31. > :09:35.of clean energy. Large parts of northern and central China have been
:09:36. > :09:39.covered in fix for this winter disrupting flight and port
:09:40. > :09:44.operations and schools -- thick smoke. There's been a glut of sell
:09:45. > :09:53.orders this morning on reports the airbag manufacturer has selected
:09:54. > :09:58.key... -- thick smog. A Japanese firm has been looking for support to
:09:59. > :10:02.deal with billions of dollars of recall costs related to millions of
:10:03. > :10:06.potentially defective airbags. Let's look that the markets before we go
:10:07. > :10:11.because as you can see they are all higher, taking their cues from Wall
:10:12. > :10:16.Street's record close on Friday. We saw the NASDAQ at a record high. I
:10:17. > :10:20.should say we are having some impact from the fact that the Chinese
:10:21. > :10:25.central bank actually raised short-term interest rates on Friday.
:10:26. > :10:31.We saw a fairly good US jobs report as well, better than expected
:10:32. > :10:32.numbers, fuelling the rise. That's it for this edition of