Uber’s latest funding round values the San Francisco ride-service company at a jaw-dropping $40 billion, making it one of the world’s most valuable startups. Co-founder and CEO Travis Kalanick disclosed in a blog post that Uber had scored $1.2 billion from unnamed investors that would go toward making substantial investments, particularly in the Asia Pacific region. Uber confirmed in an e-mail that the latest investment — which brings the total raised to $2.9 billion in less than six years gives the company a $40 billion valuation. That’s more than double the $17 billion valuation it had in June.
Uber has had in the past had its own share of controversy since revelations that a top executive discussed digging up dirt on journalists, and that some employees abused its so-called “God View” setting to snoop on VIP users’ rides. Uber’s growth has also come with significant growing pains. The events of the recent weeks have shown us that we also need to invest in internal growth and change. Acknowledging mistakes and learning from them are the first steps. The CEO believes that the firm is collaborating with divisions across the company and seeking counsel from those who have gone through similar challenges to allow us to refine and change where needed.
The net result, according to Uber’s CEO, the company has now become a smarter and more humble company that sets new standards in data privacy, gives back more to the cities we serve and defines and refines our company culture effectively. At this valuation, investors appear to be thinking that when Uber goes public, it might be worth $80 billion to $100 billion, according to analysts on the street. This type of mega-financing affords Uber a great deal of flexibility in terms of when they might go public.