Update #2 - Cathay Pacific, Guangzhou, and Gojek
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Cathay Pacific to Receive $5 Billion Government Bailout
Cathay Pacific, the flagship airline of Hong Kong, is set to receive a HK $39 Billion (US $5 Billion) bailout from the Hong Kong government. The struggling airline has been hit hard by the coronavirus and the government sees the potential collapse of Cathay Pacific as having drastic consequences. This marks the first time the government has taken a direct stake in a private company.
For reference, Hong Kong has 330,000 aviation jobs and the industry counts for ~5% of total GDP. Cathay Pacific has seen a 99% decrease in passenger revenue compared to the same period last year, all attributable to the Coronavirus.
Can Guangzhou become the livestream capital of China?
That’s the question posed in this article from Abacus. What’s the story? The Guangzhou government is literally providing financial incentives for people and businesses to start livestreaming.
The government of Huadu District in Guangzhou is offering local livestreamers housing allowances and cash grants based on their number of followers and the level of annual sales they generate. A quote from a government spokesperson representing Huadu = “In 2020, the district of Huadu aims to have 10 influential live streaming industrial parks with 100 online live streaming stores and more than 1,000 influencers. And we will aim to have online retail sales in excess of 100 billion yuan.”
Guangzhou already holds the distinct honour of launching the world’s very first livestream e-commerce festival, which took place over three days starting last Saturday. Check out this video for more detail on the festival, organised by the Guangzhou Municipal Bureau of Commerce.
Gojek’s New Video Platform, Expanding the Super App of Indonesia
Do you know Gojek? They started off in 2009 as a courier delivery/ride-hailing app, like an Indonesian Uber. Since then, they have drastically expanded their products, their countries of operation, and are now categorised as a Super App.
Gojek has just spun out their own on-demand video streaming platform called GoPlay and announced their first independent round of funding this past Monday, led by ZWC Partners and Golden Gate Ventures. Their OTT video platform was launched in September 2019 and signals Gojek’s major entry into the competitive entertainment space.
As the largest market in South East Asia, Indonesia is an attractive opportunity for many investor and as the very first Indonesian Decacorn—Gojek is likely the most attractive company. Last week, both Facebook and Paypal announced investments in Gojek that especially support their digital payment products.
