Weekly Wrap Up: The Uber Battle of Trafalgar

For a City famed for constantly being on the go, London was forcefully made to “go slow” this week as nearly 5,000 London cab drivers drew their vehicles to a halt in Trafalgar Square.

The protesters were speaking out against new smart phone app Uber, which allows Londoners to flag the nearest cab available using Geo-tagging, as well as estimate how much their fare will cost.

Whilst the former aspect of the app may be good for cabbies – the method reduces their dependency on commission charging taxi operators. The protesters were complaining that the fare estimation tool forces them to sell their services for less. Their basis for complaint was that, by law, fare calculating devices known as “taximeters” are only allowed to be calculated by black cabs, and that the Uber app could constitute a taximeter by pre-calculating a cab fare.

Unfortunately, the protest didn't have the desired effect of tarring the app’s reputation; Thursday’s papers were filled with stories of how the operators of Uber app had seen an 850% jump in registrations on the day of the protest due to the number of Londoners who discovered the app through the protest. Indeed one Tory minister, Matt Hancock, tweeted that he had never heard about the #Uber app, but that he thought it was “awesome”. The EU digital affairs commissioner Neelie Kros became the app’s champion by lauding the its innovation and the industry of disruptive technology.

This 850% spike was a rather predictable result. Within reason, all PR is good PR, and Uber simply couldn’t have paid for the paper (and even broadcast) space that the protest’s coverage gave them. One might even go so far as to suggest that this whole protest was orchestrated by Uber with the intention of raising their profile internationally and nationally.

Let us go one step further. Beyond the increase in registrations, what long-term impact could the cabbies’ strike have on the world of disruptive apps such as Uber?

Whilst the British population was busy marvelling at the effect of the protest and downloading the offending app, America (homeland of San Francisco based Uber) was allowing the spiders of cynicism to creep onto the internet waves. At 3pm on Thursday afternoon Ellen Huet of Forbes magazine reported that The California Public Utilities Commission has warned apps like Uber in a stern letter that they are no longer allowed to take riders to or from any Californian airport.

This story serves as a reminder that the eye of regulation is upon disruptive technologies such as these, and as such they could face barriers to their development in the future.

The protest may have been beneficial to Uber in the short-term, but the publicity that the protest achieved has now raised the question as to how far apps and disruptive technologies should be able to interfere with other services, and whether regulation should be stepping in to control this interference.

As we have seen from the markets in recent months, the growth of digital technologies such as Twitter and Uber is incredibly dependent on ever increasing user-ship; Twitter’s share price has been falling amid fears of slowing user growth. If regulation does prove to threaten the future take-up of apps such as Uber, it could be hugely damaging for the future reputation of these apps by “potentially thinning profits and making it hard for Uber to justify its valuation” (CBSnews.com).

This week’s protest raised an issue that went beyond the confines of London’s famous black cabs. Although this year’s 'Battle of Trafalgar' may have been won by the defender, in time it may prove to simply be the start of a greater war against technology.



Abchaps have been out and about on an international scale this week, attending the LSE Greater China Forum in Hong Kong, taking the opportunity to catch up with our clients and advisers who operate out there. Abchaps also caught up with London’s top advisers at the LSE Summer Adviser Drinks, wonderfully hosted across the road on Threadneedle Street. Ever with the media in mind, we got the low down from Richard Fletcher, Business Editor at The Times, at the CIPR lunch briefing this week too.

As always, two of the famous Abchurch Market Lunches saw an interesting array of guests sit down to discuss market trends and opportunities; thank you to our guests for your insightful contributions!



This week Michael Hafner has been appointed head of oil and gas, Europe, Middle East and Africa (EMEA) at UBS. He joins from Deutsche Bank. David Bettesworth, previously of Deloitte, was appointed head of insurance and investment management advisory at PwC in London. Also, Vicki Harris has joined Aldermore from Octopus Investments as group strategy and marketing director.



“Black PR” – The process of destroying the target’s reputation and / or corporate identity.



Make the most of the sun this weekend. The More London Free Festival is in its 12th year and intends to celebrate! There is a 4-day street party which will see 5 different cultures show us the best of their food and fun on the South Bank- give it a try!

If you are a footie fan then you can catch the games at most London pubs, but we’ve heard about a few hidden gems. If you are central, head to Anthologist and if you want to enjoy the sun whilst keeping up to date with the Brazilian antics, then head to The Round House near Charring Cross Tube. Come on England!

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How to IPO: advice for Cleantech companies

Event: London Stock Exchange Cleantech IPO Forum 2012

Date: Wednesday 20^th June

Location: London Stock Exchange, London, UK

On this picturesque British Summer morning, the Abchurch Cleantech team made the short venture across the City to
Paternoster Square and the London Stock Exchange for the 2^nd Annual Cleantech IPO Forum; a 'How to IPO' guide for cleantech companies considering floating on the Stock Exchange. Organised by Clean Energy Pipeline, we were pleased to be a sponsor alongside other IPO advisers Bird & Bird LLP, KPMG and Nomura Code Securities.

After arriving at the building and navigating through the rather intimidating revolving doors, we were greeted by the alluring aroma of coffee and breakfast pastries. As the clock struck 9, a great selection of Cleantech companies were ushered through to the auditorium where the conference commenced with a welcome note from Sam Rossiter, Product Manager of Capital Markets Events at the LSE. Kicking off the presentations was Axel Kalinowski, Business Development Manager of Primary Markets at the London Stock Exchange. He gave an insightful overview of the Main Market and AIM, the current IPO climate and the benefits of listing in London. Following Axel was Clean Energy Pipeline’s CEO, Douglas Lloyd. He spoke about the recent trends in the clean energy sector, highlighting that whilst 2012 may follow a similar dip in investment deals as in 2008/9, there is still a growing appetite for investing in the sector and it will continue to function as a major growth driver. The last speaker for session one was Ken Rumph, Director of Research at Nomura Code, who gave an eloquent presentation on what investors look for. Some of the key issues he raised included, first and foremost, that investors are looking to make money and that companies need to make their business case clear and concise; explaining why would people buy your product over competitors? A strategic approach would be to focus more on commercialisation and less on technology or green credentials - these can always be expanded later. Secondly, set out realistic milestones and plan ahead; make a checklist of things you are going to and have achieved. And finally, ensure you pick the right advisors; they need to understand the market, your underlying business model and have the chemistry to develop strong relationships. A Q&A session on public offerings concluded round one.

After a rejuvenating coffee and biscuit break, session two kicked off. First up was Connie Mixon from MyCelx giving a thorough case-study overview of the IPO process; from what to expect in life as a listed company on AIM. She similarly stressed the importance of your advisors, and in particular, how beneficial the Financial PR house was - comments which we greatly appreciated hearing! Bird & Bird LLP then navigated us through the legal issues of taking a company public. Matt Bonass and Vanessa Young addressed what to expect from the lawyers, the choices of market on which to launch and IPO preparation. Another Q&A session and coffee break and it was time for the final round. Gregory Hughes, director at KPMG, talked through the financial reporting pre and post-IPO. He highlighted the regulatory requirements necessary on the main market and AIM, the role of the reporting accountant, their work and deliverables. Key components included the construction of the Prospectus/Admission Document, the long form report (a core part of the financial and commercial due diligence for an IPO) and the ongoing requirements post IPO for both the company and accountant, e.g. financial reporting and interim management statements. Then it was Abchurch’s time to shine as our CEO, Julian Bosdet took to the stage. In a well-received presentation on how to IPO most succesfully, Julian informed the audience on how to communicate with investors and the media. He stressed the role of your financial PR advisor in helping to construct and roll out an effective, integrated communications strategy. The aim is to reach all target audiences through the press and analysts during an IPO – including all levels of investors, as well as employees, customers and industry partners.

The concluding presentation summarised a fund manager’s view with respect to investing in cleantech. Hyewon Kong from WHEB Asset Management explored the key themes and factors driving stock selection. There was a strong focus on sustainability; capturing new investment opportunities created by long term social, demographic and environmental challenges. They are not just looking for a product and how it brings benefit to the society and environment, but companies which provide real solutions to the challenges. These cleantech companies need to illustrate how they will maintain margins in an increasingly competitive landscape and have a focused strategy in terms of growth.

The resounding message of the conference on IPOs seemed to agree that while it is a volatile market at present and investment has seen a slight downturn as some fund managers concentrate on maintaining their current portfolio rather than investing in new companies, the cleantech theme remains a strong growth driver. In particular, investors like companies which are driven by regulation, as they may be somewhat insulated by the economic climate and public spending cuts. So, why IPO? Intial public offerings and life as a publically listed company offer enormous benefits; from increased access to capital to greater efficiency and corporate governance.

Overall, the conference was an excellent opportunity for companies to get a full grasp of how to IPO and what is involved in the IPO process, to identify the key players involved and what to expect when you decide to float on the Stock Exchange. For any ‘newbie’ into the industry, it acted as a constructive and worthwhile training morning, answering in great detail the popular "What is an IPO?" question. We heard the full IPO story directly from the industry experts and I would highly recommend attendance for future conferences. And, if your own personal development isn’t quite enough to tempt you, after the final closing remarks, you are served up with a delicious two course lunch and a chance to network and meet some of the experts.

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LSE Chief advocates for SMEs

“There are 21.7 million people unemployed in Europe, and 23 million SMEs. If each SME were able to take on one more person…?This is why governments across Europe must look at all they can do to assist SME growth; these businesses are the essence of our future prosperity,” said Xavier Rolet, CEO of the London Stock Exchange last night at the AIM annual awards ceremony.

This year, the old Billingsgate Fish Market (built in 1874) hosted the event, which has arguably the best views of Tower Bridge in the city. Over 1,300 guests attended the dinner, comprising  AIM quoted companies, NOMADS, brokers, accountants, lawyers and public and investor relations firms, making it the largest AIM gathering in the City. Sponsors of the event ranged from Argus to Zeus. And the overall winner of evening, taking the Company of the Year Award was May Gurney.

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