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Cash hungry Uber raising another $1 billion for its war chest
You would be forgiven for thinking that you have stumbled upon a post from August, you haven't. Uber has a thirst for cash that cannot be quenched and is now allegedly scrapping together another billion a mere three months after pumping the same amount into its China business.
The New York Times reports that the investment will value Uber at $60-70 billion making it the most valuable private startup by a country mile.
In short, this is war money and Uber is now fighting a battle on many fronts. In China, Uber is struggling to snatch market share from giant incumbent Didi Kuaidi, while in India its up against an equally entrenched Ola.
The same heavyweight backers behind Didi and Ola – which include Softbank, Alibaba, and Temasek Holdings – have also thrown their weight behind GrabTaxi in Malaysia, and Lyft in the U.S. Uber is also fighting legal battles in its three biggest markets: the U.S.,China and India.
Despite the odds being stacked against them, the company is now on the cusp of reaching a valuation that soars well above Facebook's $50 billion market value when it listed in 2012. According to Business Insider, Facebook's Mark Zuckerburg has even had a word in Uber CEO Travis Kalanick's ear, advising him to take his firm public. But Kalanick recently said:
"We're maturing as a company, but we're still like eighth graders. [...] We're in junior high. And someone's telling us we need to go to the prom. But it's a little early. Give us a few years. Give us a little time."
At this rate one wonders whether public market investors will ever have an appetite for Uber's insane valuations. When prom night comes, Uber may struggle to get a date.
Photo: Moyan Brenn