Ride sharing service Uber could reach a valuation of as much as $40 billion, even though it has been forced to cease operations in Nevada.
According to a report in Bloomberg, sources at the company say that it is near completion of yet another round of funding that would leave it with a valuation of anywhere between $35 and $40 billion.
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Anand Sanwal, chief executive officer of CB Insights, a research firm in New York, was quoted as saying that, “At this valuation, investors appear to be thinking that when Uber goes public, it might be worth $80 billion to $100 billion. This type of mega-financing affords Uber a great deal of flexibility in terms of when they might go public.”
Meanwhile the company has not been able to operate in Nevada due to that state’s strict regulations regarding taxi services. It suspended activities there after the Nevada Transportation Authority won an injunction against the company from a Washoe County District Court which agreed with the agency’s assertion that Uber’s activities in Nevada were unsafe.
Washoe County District Court issued a preliminary injunction preventing the company from statewide operations, siding with Nevada over regulatory concerns in a case that was referred to the court by a split panel of the state’s Supreme Court, the Las Vegas Review-Journal reported.
In an open statement released before the holiday Uber said, “On the eve of Thanksgiving — when Nevadans should be celebrating with family, many are now worried about how they’re going to pay their bills.”
“It’s unfortunate that Nevada is the first state in the nation to temporarily suspend Uber, ” company spokeswoman Eva Behrend said in an emailed statement. “We remain committed to working with Nevada’s leaders to create a permanent regulatory framework that affords Nevadans the flexibility and innovation offered by Uber.”
