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UBER SAID IT raised a fresh $1.2 billion in funding, giving the popular ride-sharing startup a reported value of some $40 billion (€32.3 billion).
Uber chief Travis Kalanick announced the latest funding in a blog post, saying the money will fuel expansion, especially in the Asia-Pacific region.
“It was just a year ago that Uber was operating in 60 cities and 21 countries – today we are in over 250 cities in 50 countries,” he wrote.
“We are six times bigger today than 12 months ago – and grew faster this year than last. This progress is remarkable, but it is in the coming years that Uber truly scales and the impact in cities becomes visible.”
Kalanick added that “this kind of continued growth requires investment. To that end, we have just raised a financing round of $1.2 billion… This financing will allow Uber to make substantial investments, particularly in the Asia-Pacific region.”
Details of the funding were not disclosed. But earlier this year Uber raised $1.2 billion, giving it a value of $17 billion.
The rapid expansion has caused deep tensions with traditional taxi drivers, especially in Europe.
Uber is best known for its smartphone app that lets people who need a ride connect with local drivers. The app uses GPS to put the user in contact with the nearest driver. Uber charges a commission for each ride.
Uber has also faced scrutiny following negative comments about the news media from a top executive and revelation’s that it offered a “God view” of customers that could allow spying. The company hired experts to conduct a privacy review.
Kalanick said the sudden growth “has also come with significant growing pains” and has shown “that we also need to invest in internal growth and change.”
He said planned changes “will lead to a smarter and more humble company that sets new standards in data privacy, gives back more to the cities we serve and defines and refines our company culture effectively.”
Kalanick said Uber has been a positive force around the globe.
“In 2015 alone, Uber will generate over one million jobs in cities around the world and with that millions of people may decide that they no longer need to own a car because using Uber will be cheaper than owning one,” he said.
“Parking could become less strained in our biggest cities, and city congestion may actually start to ease” due to a new carpooling system called uberPOOL.
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I still can’t believe a company that basically allows you to hitch a lift with unlicensed strangers for a fee is a viable business model.
I must be getting old.
Oh no, I find myself in agreement with John Gahan. Uber is a company run by deeply unethical people – people who threaten to smear journalists, people who try to interfere with fundraising for rivals, people who try to weasel out of responsibility when one of their drivers kills a 6 year old girl, people who hike up their prices during natural disasters. I uninstalled the app people ai ever had the chance to give a penny to these kinds of people.
Uber are sc-um. End of story.
Plus, why would you need them when we’ve already got a perfectly good Hailo?
That $40bn valuation is a joke, tbh.
@JohnGahan in Ireland all uber drivers are licensed. If it’s uber black they are licensed corporate limousines and they driver holds a spsv licence which is the same as test a taxi driver sits. It is the vehicle licence which is different and you will see the license on the corner on the front and rear windows. All these licenses are issued by the National Transport Authority and an Garda Siochana
Been there, done that..
Imagine the possibilities if uber invested in self driving cars. Your smart phone would become your car keys. Or if they expanded into buses, no more 3 hour 20 minute bus eireann trips for hour and half journeys.
My smart phone is my car key.
The door opens automatically when I’m 10 feet from the car – even though the phone in my pocket/bag.
Its been around for years, the technology – and the android system has added new dimensions with its new management/use of GPS etc.
When an app like that gets valued at €40bn – it’s time to sell all your tech stocks as soon as humanly possible.
Tick tock tick tock …
have your say