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