Menu
Uber increases funding round by $1B to meet investor demand

Uber increases funding round by $1B to meet investor demand

By issuing more stocks, Uber more than doubled the capital raised during its latest funding round

The prospect of government oversight and steady stream of security issues facing Uber haven't scared investors from the ride-hailing company, which will expand its latest round of venture funding by US$1 billion.

In December, Uber initially raised $1.2 billion during a funding round. At that time, Uber estimated there was room for an additional $600 million in investments.

Investor interest, though, proved greater. To meet the demand, Uber will expand that round and issue approximately 30 million additional shares valued at $33.31, according to documents filed Wednesday with the Delaware secretary of state. Uber is based in San Francisco and incorporated in Delaware.

The latest expansion brings the total amount of money Uber raised from the funding round to $2.8 billion, more than double what it originally raised. That figure includes the $600 million additionally raised earlier in the round. The extra cash injection doesn't increase Uber's valuation, which is still $40 billion.

Overall, Uber has raised nearly $6 billion since it launched in 2009.

Cash from the most recent funding round would be used to expand to Uber's Asia-Pacific operations, CEO Travis Kalanick said at the time.

While investors are keen on Uber, governments aren't as excited about the ride-hailing startup. City officials in Delhi banned the company while police investigated claims that an Uber driver allegedly raped a female customer.

In December, South Korean officials sued Kalanick for supposedly disregarding the country's transportation laws. Car-hailing companies will eventually have to obtain a special state license to operate in Massachusetts. Over the next six months, state officials are developing guidelines on how to grant those permits.

Taxi companies have also spoken out against Uber, saying its lack of regulations give it an unfair advantage. Meanwhile, competitors Lyft and Sidecar are ramping up operations. Sidecar, for example, expanded its same-day delivery service in the U.S. earlier this month.

Fred O'Connor writes about IT careers and health IT for The IDG News Service. Follow Fred on Twitter at @fredjoconnor. Fred's e-mail address is fred_o'connor@idg.com

Subscribe here for up-to-date channel news

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags Ubermobile applicationsTravis Kalanickmobile

Featured

Slideshows

StorageCraft celebrates high achievers at its inaugural A/NZ Partner Awards

StorageCraft celebrates high achievers at its inaugural A/NZ Partner Awards

Revealed at a glitzy bash in Sydney at the Ivy Penthouse, the first StorageCraft Partner Awards locally saw the vendor honour its top-performing partners with ASI Solutions, SMBiT Pro, Webroot, ACA Pacific and Soft Solutions New Zealand taking home the top awards. Photos by Maria Stefina.

StorageCraft celebrates high achievers at its inaugural A/NZ Partner Awards
Kiwi resellers make a splash on Synnex and Lenovo RotoVegas road trip

Kiwi resellers make a splash on Synnex and Lenovo RotoVegas road trip

​Synnex and Lenovo hosted 18 resellers for an action-packed weekend adventure in RotoVegas, taking in white water rafting on the Kaituna River, as well as quad biking and dinner at Stratosfare​, overlooking Lake Rotorua at the top of Mount Ngongotaha​. Photos by Synnex.

Kiwi resellers make a splash on Synnex and Lenovo RotoVegas road trip
Show Comments