Travis Kalanick, Uber, Code Conference

Asa Mathat

Commerce


Ride-hailing app Uber is worth $18.2 billion in the eyes of investors in an enormous new funding round.

The company has raised $1.2 billion of what it expects to be a $1.4 billion round that values it at $17 billion before the money goes in.

It’s the largest valuation yet for a private tech company in a sea of incredibly highly valued private tech companies. Yes, “record-breaking,” as CEO Travis Kalanick promised at the Code Conference last week.

Kalanick noted in a blog post today that Uber now operates in 128 cities, four years after launching. He claims the company creates 20,000 new jobs per month.

The round comes from Fidelity Investments, Wellington Management, BlackRock, Summit Partners, Kleiner Perkins, Google Ventures and Menlo Ventures, The Wall Street Journal reported. Uber also told the Journal it planned to cut prices by 20 percent in many markets.

Last week, Kalanick said Uber would use the money to fight its competitor Lyft and rail against the “asshole” taxi industry.

Only Thursday, Uber and Lyft received their first legislative clearance for the peer-to-peer ride services they coordinate. Colorado Governor John Hickenlooper signed a bipartisan bill that changes little about how the services operate, but requires things like car inspection by a certified mechanic. The companies have similar clearance in California, but it’s from transportation regulators rather than a law.

Less than a year ago, Uber was valued at $3.5 billion in what was also an enormous round, but pales by comparison.




6 comments
TechCheck
TechCheck

Extrapolating valuation based on an investment for share agreement is not the same as company value, company earning potential, or company valuation should it float publicly. In short it's a nonsense, fairytale method of establishing the value of a company. (Plus it ignores any other valuable details in the agreement.)

It's pretty foolish looking to report it that way too. To the financially aware it's analogous to way that a scientist may cringe at fire and big booms in space movies. It looks impressive, but it has no foundation in reality.

Perumula
Perumula

Can y'all just consider calling $17 billion what it really is...i.e. 17,000 millions of dollars or if you prefer, $17,000 millions. To the ordinary person this shortcut custom of just putting a B behind a number gives no reference for what that really amounts to!!  In Spanish it works just fine and actually gives a fairly lucid idea of what it means in real life!

Filip
Filip

No bubble here; no, none at all.

rcostareis
rcostareis

 Are all these full interviews from the Code Conference coming to the site?

I'd love to see this one in particular...

erikschwartz
erikschwartz

With the certainty of LIFO liquidity preferences in this kind of late stage deal at what valuation must Uber exit for the common shares (those held by employees) to have any significant value?