Despite having a slimy reputation for its privacy issues, surge pricing and sexism, investors believe in Uber. The taxi app has just extended its latest round of investment funding by a billion dollars to a new maximum of $2.8 billion. The New York Times reports that the investor-urged raise came just weeks after their previous investment cap of $1.8 billion was oversubscribed. The company’s current valuation is over $40 billion.
Uber has seen nonstop growth over the past few years – pushing its services into Europe despite some local opposition, as well as speculation of breaking into the Asian market with some new key investors like the Chinese tech company Baidu. Uber isn’t the only ride-service company raising money right now, either. Lyft, another popular yellow-cab alternative and Uber competitor is currently trying to raise $250 million in private capital.
But some are wary. “There’s nothing in their business model that requires that much capital,” said Sam Hamadeh, CEO of financial intelligence firm PrivCo. “The timing is suspicious,” he told CNN Money. “It feels more like Uber’s history of wanting to not just beat the competition but leave it in an alley for dead.”
(Photo: Ian Forrester)