Incumbents Hedging with their Disruptors

Cheap oil has been a blessing to airline profits, typically offsetting hedge losses because fuel comprises about a third of airlines’ operating expenses. Southwest earned $608 million in the first quarter of 2015, and United Airlines posted a $1.19 billion profit. Hedging can insure against soaring fuel costs.

Visa — Square

Back in 2011, Visa, the 58 year old multinational financial services corporation which has a 38.3% market share of the credit card marketplace and 60.7% of the debit card marketplace in the United States, invested in Square.

Ford — Getaround

With Uber raising ~$10B and Lyft raising ~$2B, a lot of entities are shorting car ownership. But this would not be happening anytime soon.

Writing about business strategy and well executed development. Running (web & mobile development from NYC/LA)

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