New funding could increase Uber’s valuation to 62.5 billion dollars
Taxi service Uber, currently valued at 51 billion dollars, could increase its worth by about 11.5 billion dollars with new funding. According to sources on the inside, the paperwork for the new plans has already been filed, although the new fundraising plans still remain private.
Uber is working hard to expand more rapidly on a global scale, not only by increasing its working area, but also its service portfolio. Once only an alternative to regular taxis, the world’s highest valued startup is now looking into other transportation-based services. Food and package delivery are among the new ideas, but also a puppy service, where stressed people can relax by cuddling a cute 4-legged friend for 15 minutes, and even adopt the puppy from the cooperating shelter. Uber is also exploring new technologies, such as self-driving cars.
Investment partners named in the latest financing round are Tiger Global Management and T. Rowe Price. Also like-minded strategic investors are being sought for funding. Microsoft has also been named as a financial partner in a previous fundraising round, investing about 100 million dollars.
Uber’s aggressive expansion is necessary to stay ahead of the increasingly strong competition. In the U.S., Lyft is gaining ground in key markets, such as San Francisco. Outside of the U.S. companies such as Didi Kuaidi in China, Ola in India, and GrabTaxi in Singapore are trying to offer a similar service. Together with Lyft, these 3 Asian competitors are joining forces to face Uber globally. One of their new efforts is to make their apps cross compatible for travelling clients.
Uber was named by internet billionaire Mark Cuban as one of the companies that could create a new dotcom bubble, larger than the one that caused a large market crash in 2000. By the looks of it, however, this company remains a solid investment.