Cobone acquired by Tiger Global Management, Google selling cars?, Hybris raises money and much more
I missed writing last week’s summary and boy this week has been full of news. Google is rumored to be building a Amazon Prime competitor. I find this interesting, how does it fit into the commerce value chain at Google? (at the moment this seems like a program to be run on top of Google Shopping? ). Secondly, it raises a very interesting question – if I am a merchant why would I take part in this program? Amazon Prime is the world’s greatest loyalty program and it is very successful for Amazon’s customers. The mere fact that Bezos keeps the user numbers secret tells you of the importance. Google has a serious disconnect with “Google Shopping Express” and needs to ensure that it compliments its services or it will go nowhere.
Are we beginning to see the building blocks for a marketplace from Google? Maybe, but Google has bigger problems to worry over – vertical search as seen with apps is cannibalizing its advertising business(the goose that lays the golden eggs for Larry and co), Android has lost ground in comparison to iOS for the last 2 months and Motorola seems to be having less staff every month.
I am going to say it as it has been on my mind for the last few weeks – anybody that wants to directly compete with Amazon needs lots of cash, patience and has to be 4 steps ahead of Bezos. No one has won when going head to head with Amazon.com (only when using the courts have Amazon lost) – they are the kings of margins and closing down industries. Google must be real sure that they want to go head to head with Amazon. I have seen what they do to companies – it aint pretty.
A few weeks ago I wrote about a potential IPO for Hybris software. Well, in the last few days they have announced a new round of funding by some serious investors. Meritech’s additional investing is interesting as they are a late stage fund and I think it signals that this investment is primarily done for growth. Let us be honest for a moment, enterprise commerce solutions is at the moment an open market. Oracle has spent billions on acquisitions, eBay has a interest via GSI Commerce and IBM has also spent millions on acquisitions to ensure that they have a total solution for merchants. Hybris is in my opinion a company to watch and I have a feeling that they will target specific functionality to add to their current offering. The IPO will come as they will need to raise money to challenge Oracle ATG in the enterprise commerce platform industry.
Africa and the Middle East are regions that I look at closely. Ecommerce in both regions are it is infancy but the investors are all here spending millions to ensure that they have a business/es to cater for customers in both regions. The Middle East has seen an influx of investment (LivingSocial etc) and then saw those same investors move out of the markets. It is almost like the ecosystem lost momentum which ensured business closures, investors leaving etc. Cobone is a early market leader who received funding from LivingSocial (whom are also under some pressure) and then lost the investor due to LivingSocial leaving the region. Earlier today, it was announced that Tiger Global has acquired Cobone with original investor Jabbar Internet Group exiting the investment. I note that Tiger Global Management is investing heavily in Africa and MENA – it almost looks like a consolidation of holdings has been happening over the last 6 months.