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Uber reportedly raising a new round at $10B valuation

Above: Promotional photograph from Uber

Image Credit: Uber

Alternative-cab service Uber is raising another big funding round, this time with the potential to give it a valuation above $10 billion, Bloomberg reported today, citing unnamed sources.

This would be a big bump up from Uber’s most recent valuation of $3.5 billion at the time of its roughly $350 million funding round last year.

The new round for Uber reportedly includes private-equity investors — something that’s common these days, following similar moves from fast-growing companies like Airbnb, New Relic, Hortonworks.

Uber did not immediately respond to VentureBeat’s request for comment.

The black-car service faces a growing pile of lawsuits from cab and insurance companies and the family who lost a 6-year-old girl in a recent accident in San Francisco, the city where Uber has its headquarters. Uber is also attracting attention from regulators of cabs.

A heaping bag of fresh cash would help Uber handle all such cases and at the same time roll vehicles into more cities and come out with new services that could appeal to more consumers.

Uber competitor Lyft announced a $250 million funding round last month. Sidecar announced a $10 million round in February.

The company has been making plenty of moves recently. Uber continues to expand into more cities, along with rolling out several new services. People can order up rides in sport-utility vehicles. Last month, Uber kickstarted an on-demand courier service. And Uber now permits you to install a child car seat for an additional fee — a good fit for families with kids.

Uber has become so widely available that Google Maps now shows people how long an Uber trip would take in comparison with other modes of transportation.

More information:

Uber Technologies Inc is known as Everyone's Private Driver. Uber operates an on-demand car service used all over the world. With the touch of a button from your phone, you can experience your own private driver. Sign-up quickly, g... read more »

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29 comments
Mark Spera
Mark Spera

I have no problem with Uber specifically, but VC money has made it simply impossible to compete with companies like Uber. When you can raise that much money, your prices can be artificially low. How can cabs compete? Uber don't mind losing a few million to acquire customers with low prices. 


The service is objectively better, but only because they've raised hundreds of millions to make it so. Fair or unfair, it's worth bringing to the table. 

Shaun Dobbin
Shaun Dobbin

It depends on whether they're successful in negotiating their way through each countries legislation in a highly regulated industry. If they are then yes absolutely. CabCharge, Australia's dominant player in this space, has a market cap of $483million alone. Uber is targeting a global market.

mikekeen
mikekeen

@jrecht @VentureBeat The entire taxi industry in the US brings in about $11 billion a year. $10 billion would be an impressive valuation.

Gershon Diner
Gershon Diner

one of the most practical services I keep using for a while. Well done

Bruno Macedo
Bruno Macedo

The rising of this mesh business is even more catchy nowadays and my honestly guessing is the trend only point out to a sustainable and massive growing business

Ivan Shyr
Ivan Shyr

Wow!! I love Uber and use it almost every week but $10bn?? Let's see how successful the Intl expansion plans goes....

Chris Comella
Chris Comella

Or domain names, such as these: P2PCarRental.com, P2PCarRentals.com, P2PDelivery.com, P2PPark.com, P2PRent.com, P2PRental.com, P2PRide.com, P2PRides.com, P2PTaxi.com. Yes, I own them (for now, anyway) #shameless

Nadav Ben-Haim
Nadav Ben-Haim

If Dropbox is worth ten billion then yes uber is also worth ten

Maxime Calouche
Maxime Calouche

The business model lacks serious entry barriers for Uber to be worth this much. The network effect is not very strong. And with all the lawsuits piling up, I highly doubt Uber is worth $10B... If you do, you have to believe Uber is able to make around $30B in profits before the next innovation comes and changes it all over again.