On Friday, Uber Technologies Inc. announced its plans to raise $1 billion from new investors. The ride-sharing service, which has an estimated worth of $60 to $70 billion, did attract a strong portion of venture capital nearly three months ago.
With a value as high as $50 billion at the moment, the current request is the eighth time that Uber receives money from private investors in the last five years. In case of a successful round of financing, Uber has a strong chance to become the highest value private start-up, according to New York Times.
As reported by New York Times, Uber is backed by powerful names in the venture capital, including Google Ventures, Chinese internet giant Baidu Inc. and Goldman Sachs.
China is one of the focal points of Uber's efforts. The company shells out hundreds of thousands of dollars on the Sino market offering discounted rides to passengers and better rates for drivers.
Voices familiar with the subject stated that Uber aims to establish itself as a household name in China, where it faces a dire competition from Chinese ride-hailing service Didi Kuaidi. CEO Travis Kalanick stated that around 30 percent of all Uber trips happen on Chinese territory.
Last year, at least $1 billion was budgeted for legal disputes with the authorities in Thailand, Singapore and Vietnam, who work hard to regulate the use of Uber across their territories.
Some government regulators face pressure from their national transportation industry that wants car-hailing services to be more strictly regulated. Syndicates of cab drivers are quite vocal on the subject, since they regard Uber as a disloyal competition. In spite of legal proceedings and drawbacks, the company stated that it is developing at an accelerated pace and that it opens new locations weekly.
Investors seem to agree that a huge growth potential lies in the car-hailing app, and additional services of Uber point in the same direction. So far, the company only dabbled into food-delivering with Uber Eats or into retailer goods deliveries with Uber Rush, but the stream of income expected to flow from these alternative sources is immense.
Although Uber refuses to comment on the probability of a new financing appeal, but sources inside the matter claim that it is imminent.