BIZ BUZZ: Trouble in two-wheeler paradise?
From a fast-charging, attention-grabbing, market-defining enterprise just a few years ago, this company that daily commuters are very familiar with is said to be getting dangerously close to coming to a complete halt.
Biz Buzz sources said that the ride-hailing company implemented this week its latest round of job cuts, prompted by increased competition and nagging problems with its app that have turned off both the end-users and its drivers, many of whom have jumped to rival firms.
Sources shared that the job cuts that caught the staff unawares were felt across departments, with some teams’ manpower complement reduced by a minimum of 10 percent and a high of 50 percent, in an attempt to save on rising costs that have eroded revenues and the bottom line.
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This latest retrenchment episode follows a similar purge early last year, which means that the problems it had then have only persisted, leading to this latest drastic action.
Industry observers were not exactly surprised, however, that this ride-hailing company had to shed employees, given that top management has reportedly lost focus on the company and instead turned its attention to the rough and tumble world of politics.
Will these latest cuts lead to the desired results and stem the bleeding? Will another one follow? Or will the company be forced to throw in the towel? Abangan! —Tina Arceo-Dumlao
DigiPlus in, Bloom out?
Half of the eventful year is over, and even more changes are in store in the next half, starting with the rebalancing of the 30-company Philippine Stock Exchange Index.
After adding AREIT and China Banking Corp. earlier this year, Biz Buzz sources say that online gaming juggernaut DigiPlus is also on its way to the index following the review ending June 30, possibly replacing Bloomberry Corp.
A listed firm must be among the country’s top companies in terms of liquidity and market capitalization to qualify for inclusion in the index.
It should also maintain a free float level of at least 20 percent of its outstanding shares. Relevant financial criteria are likewise considered in the evaluation of the final index composition, according to the Philippine Stock Exchange.
DigiPlus—led by Forbes Magazine’s breakout billionaire Eusebio “Yosi” Tanco—has long been rumored to join the elite group given its status as a market darling, even if its share prices have been rocked by concerns over rising regulatory risks in the online gaming sector.
Its numbers so far, however, have been compelling enough.
At the end of the first quarter, its revenues surged 69 percent year-on-year to P23.06 billion while its net income more than doubled to P4.2 billion.
Most recently, DigiPlus—operator of BingoPlus that helped boost DigiPlus’ registered user base to 40 million last year—made it to Fortune Southeast Asia 500 list for the second straight year, rising 259 spots from 2024.
Will these be enough to merit index inclusion?
We will all soon find out. —Tina Arceo-Dumlao
