The DealBook newsletter delves into a single topic or theme every weekend, providing reporting and analysis that offers a better understanding of an important issue in the news. If you don’t already receive the daily newsletter, sign up here.
Many companies made changes to survive the pandemic. For tech companies, the changes were also about seizing opportunities to thrive as life abruptly moved online. Few companies have juggled these risks and rewards in as many industries, across as many countries, as Prosus, an Amsterdam-based conglomerate that in 2019 was spun out of Naspers, the South African tech and media giant.
Prosus’ holdings run from e-commerce and classifieds to food delivery, fintech and more. The group is valued at around $180 billion, which makes it one of continental Europe’s 10 largest companies. It operates in more than 80 countries and owns sizable stakes in the internet giants Tencent of China and Mail.ru of Russia. The companies that Prosus controls employ around 20,000 people, and many more work as contractors or at companies in which Prosus holds smaller stakes.
Uber, DoorDash and others. But Prosus companies like Delivery Hero and iFood took steps to help preserve long-term good will with its partners at the expense of short-term profits. In Brazil, for example, “we paid restaurants much quicker than we usually did,” Mr. van Dijk said. “From a cash-flow point of view, that was actually pretty important” in keeping restaurants in their good graces, reducing potential tensions between restaurants struggling during the pandemic and online delivery apps seeing demand soar.
Today in Business
It was a similar story in India for classifieds. “We reduced fees substantially, or we waived fees,” he said. “That allowed people to preserve cash. When things started to come back again, there was a lot of appreciation around that.”
digital services taxes throughout Europe, meant to collect more revenue from multinational companies that do extensive business in countries without much of a physical presence within their borders. Those wouldn’t apply to Prosus, Mr. van Dijk said — “we invest locally and pay taxes” — but he added that the charges could erode the industry’s profit margins.
“I understand where it comes from,” he said, but “sometimes the regulation is a little blunt.”
What could hurt Prosus, Mr. van Dijk said, are changes to the gig economy, particularly efforts to entitle delivery drivers to worker benefits. Some drivers prefer the flexibility of being contractors, he said, and “we try to pay people properly regardless of what the legislation is.” As far as he could recall, Prosus has never lobbied against classifying workers as employees, as rivals like Uber have.
Another area to watch is China, which has moved to rein in some of its homegrown internet behemoths. Though officials have focused largely on Alibaba, Tencent hasn’t escaped their gaze: The company, which Prosus bought into back in 2001, was among those fined last month for violating antitrust rules. It is Prosus’ single biggest investment, and a tougher crackdown could batter the conglomerate’s market value.
Despite the stakes, Mr. van Dijk downplayed the threat. “Our impression is that China is still very supportive of its tech giants,” he said.