Uber expects to raise another $2 billion in capital, according to The Wall Street Journal. This would give the company a valuation of as much as $50 billion.
It is said to be looking to use the new funds to create partnerships, as opposed to expanding its services which Uber did with previous investments.
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Uber achieved a valuation of $40 billion after a $1.2 billion investment last February. But for now the company is keeping mum and no details as to who is investing and under what terms.
The high valuation is remarkable for a new company that has yet to go public and which does not have such high revenue streams. This is reminiscent of the dot com bubble of 2000. But unlike those companies, who relied solely on advertising, Uber has a more reliable source of revenues.
Many observers find it odd, to say the least, that Uber could really be that valuable, all things considered. It was just forced to pull out of Kansas after that State’s legislature voted in new ride sharing regulations over its governor’s veto, has been forced out many American states and cities and whole countries like Spain.
The company is trying to stay alive in India after accusations of rape against one of its drivers there. Similar accusations have been made against Uber drivers in both New York and Boston.
It is also under investigation in the Chinese city of Chengdu for violating local taxi regulations and the Guardian is reporting on how Uber’s Italian general manager, Benedetta Arese Lucini, has been suffering a great deal of abuse by locals in the city of Milan where Uber Italy is headquartered.
The newspaper reported that posters with the words ‘I steal’ printed across Arese Lucini’s face have been plastered around Milan’s taxi stands.
With all this being considered, it seems brave, for anyone to be willing to risk big bucks investing in Uber.
