Hero MotoCorp and Uber are looking to enter bike taxi services
Uber is the world’s largest cab aggregator which has invested heavily into running their service in multiple countries in the world. To get a stronger foothold, the firm had launched uberMOTO in few cities of India and Thailand on a pilot basis. “uberMOTO enables riders to tap a button and get a motorbike ride in minutes. It’s a great way for people to save time and money on short trips and provides last mile connectivity at the most affordable price”.
Now, they are working to strike a chord with the world’s largest two-wheeler manufacturer, Hero MotoCorp, and start a full-fledged bike-taxis in three metro cities in their home country, India. With prices starting at just ₹20 for the first 3 kilometers (that is just 30 cents for the first 1.86 miles), they are more affordable than public transports.
After all the speculation surrounding Hero MotoCorp’s reported buy-out of Erik Buell Racing, the two companies have finally announced that a deal has in fact been agreed upon. The only caveat is that it’s not the full-blown acquisition that was initially reported.
Hero MotoCorp, through its wholly-owned subsidiaries HMCL NA Inc. and HMCL Americas Inc., announced in a filing with the Bombay Stock Exchange that it had entered into a settlement agreement with Erik Buell Racing to purchase “certain tangible and intangible assets of EBR Entities” for a sum of $2.8 million.
So, what does that mean? The most important thing to remember is that Hero isn’t buying EBR outright. Instead, it will only buy a certain part of EBR’s overall business, leaving other aspects of EBR’s business still up for grabs through its Chapter 128 receivership.
Part of the acquisition allows Hero to retain research and development assets that EBR has been developing for the company. This particular wrinkle in the two company’s business dynamics came about when EBR signed a consulting deal with Hero to provide R&D services for the Indian motorcycle brand. As part of this most recent acquisition, Hero gets to keep all the technology EBR was developing on its behalf. That includes tech for the Hero HX250R, which would probably prove useful for Hero in the long run.
As expected, the deal between Hero and EBR has yet to be consummated because it’s still subject to approval by the Circuit Court in Wisconsin and the board of directors of Hero MotoCorp. The good news is that neither side expects to find any resistance so there’s optimism from both companies that the transaction will push through sooner than later
Continue reading to read more about Hero MotoCorp’s acquisition of consulting assets from EBR.
Erik Buell Racing may have found a lifeline in the form of Hero MotoCorp, the Indian motorcycle company that’s reportedly in the final stages of securing a buyout agreement with the American bike maker. No confirmation has been made on this front, but reports coming out of Thailand indicate that Hero has already acquired the entirety of EBR’s shares, which would make it the sole owner of the beleaguered US company.
The news comes as a welcome surprise for a lot of us who were hoping to see Erik Buell Racing find a new owner after falling into bankruptcy back in April 2015. The same reports also said that Hero MotoCorp has offered Erik Buell full-time employment and continue with his role as the driving force behind the company that bears his name.
On the motorsport front, Hero’s rumored acquisition of EBR could also mean the return of Team Hero EBR World SBK after the racing team was forced to abandon all of its competitive initiatives as a result of EBR’s bankruptcy. It’s worth noting that Hero MotoCorp initially said that it would continue funding Team Hero EBR shortly after news broke of EBR’s closure. But after the “recent bankruptcy of EBR and the re-prioritizing of efforts” by the company itself, it determined that cutting the cord on its involvement with the WSBK was the best course of action.
But now that Hero effectively owns EBR, there’s no stopping the company from bringing the team back to active competitive. That’s great news for fans of Team Hero EBR World SBK, but it’s even better for fans of Erik Buell Racing who have been waiting for the past three months to hear some good news about the company’s fate.
Hopefully, there’s a lot of truth behind these rumors. It would really be exciting to see the company back up and running again.
Continue reading to read more about Hero MotoCorp’s rumored acquisition of Erik Buell Racing.
The fallout stemming from the closure of Erik Buell Racing continues to be felt in the motorcycle industry. Hero Motorcycles is one of the companies that have been affected by EBR’s sudden closure and now, reports indicate that the effect of EBR’s decline has affected the expected launch of the Hero HX250R. According to Autocar Pro in India, Hero Motorcycles has decided to delay the launch of the highly anticipated bike to 2016.
No official details have been revealed regarding the reason for the delay, but most believe that it has something to do with the closure of EBR, which actually had a lot of design input on the HX250R with the model considered as the first motorcycle to be fully built through a collaboration between the two companies.
But now that Erik Buell Racing has closed its doors, Hero Motorcycles has lost its design partner and is now left with finishing up the model on its own. There are also whispers that the company is looking for a new partner to help finish the design of the HX250R, a task that EBR wasn’t able to complete before it closed down.
The decision to delay the launch of the HX250R could also be tied into a belief within Hero Motorcycles that not having a distributor in place in North America would be detrimental to its plans for the model. EBR would’ve filled that role if it were still around, but now that it’s not, it didn’t make a lot of sense for Hero to launch the North America-bound HX250R without having a proper network to receive it in that market.
Whatever the company’s real intentions are, it does look like we’re going to have to wait a little longer for the Hero HX250R. It’s a shame considering all the hype and momentum the sports bike has generated in recent months. With EBR closing, that momentum has been derailed, at least until Hero can find a new partner to get it back on track.
Continue reading to read more about Hero Motorcycles’ decision to delay the launch of the HX250R.
Team Hero EBR has officially announced its withdrawal from the World Superbike Championship, putting to rest all the speculation about the team’s uncertain future after the unexpected closure of Erik Buell Racing. The team initially said that it would continue racing, but after carefully considering all of its options moving forward, the team decided it would be much better to cut the cord on its involvement with the WSBK.
Pegram Racing owner Larry Pegram issued a statement, saying that the “recent bankruptcy of EBR and the re-prioritizing of efforts by title sponsor Hero” were the biggest reasons behind its withdrawal from the racing series.
With no sponsor and no bike, the team decided that there was really no point in competing this season. Pegram did say that the team will be back sooner than later, presumably with a new title sponsor and a new bike to compete in.
The team’s withdrawal from the WSBK really isn’t surprising given the recent closure of EBR. The writing was pretty much on the wall already and Pegram Racing understood that it needed more than just hopes and dreams to participate in a racing series as expensive as the World Superbike Championship.
Hopefully, all parties can recover from this setback better than ever. That’s the least we can hope for, even though there’s no guarantee of any of that happening.
Continue reading to read more about Team Hero EBR’s closure.