Temasek-owned SingPost to divest US e-commerce business after investing $250 million barely 3 years ago

After several social media sagas on its service standards, Bloomberg reported on Wed (13 Mar) that Singapore Post will reduce or divest its US e-commerce business after conducting a strategic review of the units.

Back in 2015, the Temasek-linked company had bought majority stakes in two companies – TradeGlobal Holdings Inc and Jagged Peak – for about US$184 million ($250 million) in 2015.

Their e-commerce business helps US retailers such as Speedo and Tommy Hilfiger manage online stores and package deliveries.

Singpost spokeswoman Mei Yu Hong told Bloomberg that the “e-commerce operating environment in the U.S. continues to be challenging due to intensifying competition and rising customer bankruptcies” and is “expected to remain loss-making in the current financial year”.

Indeed, the US e-commerce business has been a drag on the group’s profitability as it suffered losses in each of the last three years. The article attributed this to why Singpost’s market value has halved since its record high share price of $2.14 in Feb 2015.

CLSA analyst Horng Han Low was quoted as saying that the “US e-commerce strategy comes at a heavy price and would be costly to execute a turnaround” and has “weighed on valuations and business outlook”.

He added that he is expecting “an exit from US e-commerce business either by scaling down or a sell-off”.

 

 

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10 Responses to “Temasek-owned SingPost to divest US e-commerce business after investing $250 million barely 3 years ago”

  • Bystander:

    Singpost can’t even get their local postal service right on local shore, how to go overseas to compete?
    In Singapore, SP either had postman threw away our mail, or even if you pay for mail direction to another address, mail is still delivered to old address, redirection costs money hoh.
    Is the present CEO a PAP affiliated man, is he retired ex SAF man or what?
    Most retired generals posted to front GLCs are not of commercial grade substance, poor quality men who always can’t meet international competition, and always fall flat on their face.

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  • Great Asia:

    Wow! Mamashop is still in the news?

    I have spoke about this mamashop so many times over the past one decade.

    Useless!

    Ha ha ha!

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  • NotMyProblem:

    “Singpost spokeswoman Mei Yu Hong told Bloomberg that the “e-commerce operating environment in the U.S. continues to be challenging due to intensifying competition and rising customer bankruptcies” and is “expected to remain loss-making in the current financial year”…”

    It is well known whatever Temasick touches, it turns cash to ash. It is made worst when a general was in-charge. Without any experience in competition in the real world, these generals are total lost in the wilderness.

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  • can we report CI to police?:

    clap clap clap. another few S$b of 70% sheep CPF money down the gic temasick husband wife drain. expect more GST increase with more such losses.

    clap clap clap again. 70% sheep so stupid to vote into power folks who waste their money and tax them more to make up for the losses. ffffing stupid sheep. only Spore can produce such ffffing stupid sheep.

    even lowly educated Msians across the causeway know Dr Mahatir PH is better than incumbent corrupt najib BN.

    just wonder when 70% sheep wakes up to realize Dr Tan CB PSP is better than incumbent corrupt clown pap. after all, the longer 70% sheep takes to wake up, the harder 70% sheep suffers. plain stupidity these 70% sheep.

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  • Dr. Chan:

    These fake scholars, bookworm, paper generals, JLB ministers with no real world experience will ultimately bankrupt Singapore.
    Can’t wait to see how they will perform in a real war combat. Probably kenna totally annihilated.

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  • SG tax payers will pay for it:

    SG civil servant CEO’s easily outwitted by everyone.

    If you have anything you want to offload? Get in touch with the SG civil servants running Temasek or our GLC’s. SG tax payers will pay for it.

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  • Bapak:

    Sorry bro, it takes stupid citizens to keep voting for smiling-face-hidden-dagger party always appointing inexperience kakilangs & paper generals to run their lives. What all these paper generals know is to increase taxes to generate profit yet stupid Sinkies dont realize they are the suckers here. Sinkies are so stupid, they dont see anythings more than 3 ft away. Stupidity has no cure. SG is gone case.

    Dr. Chan:
    These fake scholars, bookworm, paper generals, JLB ministers with no real world experience will ultimately bankrupt Singapore.
    Can’t wait to see how they will perform in a real war combat. Probably kenna totally annihilated.

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  • HarderTruths:

    How much of CPF did they lose this time? I guess I will find out when they start raising the withdrawal age …again!

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  • Careshield2 / Merdekashield:

    What other land sales or tax collection are going to be pumped into GIC as not country “revenue”? or any additional forced payments like “careshield2″ or “Merdekashield” will be invented?

    Was the previous Auditor-General empowered to checked into GIC account? I doubt so as it would have been drafted differently? I think is “I CHECK MYSELF” more likely.

    Can the WP enlighten us on this? Also is the President empowered to check into GIC account? Very complex jig-saw puzzle.

    Only happen in Singapore? Would you agree?

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  • Where's My CPF?:

    More CPF money will be held back and for longer.
    Minimum sum will raise quicker until “CPF is not your money” becomes naturalized.

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