Even though Uber has been berated and even banned in several cities worldwide, its valuation is still bursting, and the car service is still attracting high-profile private investment, according to CNBC.
Series E of its private funding was $2.8 billion, and there was “overwhelming demand from institutional investors.” According to InternetDealBook, what makes Uber so attractive is the odds that it will make good on its promise for its projected $10 billion gross revenue. It saw 300% growth in this metric last year, and could see a repeat performance of 300%. Baidu was among its investors, and Goldman Sachs provided debt financing.
There is no chatter about Uber going public any time soon, which is probably a good thing for the company, since a plethora of negative headlines would likely batter the share price.
The company has raised $5 billion in private funding since it took to the road in 2009. While competitor Lyft is growing, it is far behind Uber. Still, the company is facing regulatory headaches in many countries and cities as traditional cab services fight for survival.
Safety concerns were raised over rape allegations in India and the U.S. and there were questions about privacy. It may be difficult for Uber to compete in China when faced with a potential merger between the country’s two major cab services that might claim 90% market share. In addition, the Chinese aren’t known for taking kindly to foreign and competing businesses. Still, Uber is likely to spend to win and expand its UberPool, ride sharing platform.