Uber adds another $1.2B to its War Chest in Ongoing Fundraising Round

Uber Taxi Uber – the app-based on-demand ride-hailing service has raised more than $2 billion from investors in June and December in 2014 at a valuation of $17 billion and $40 billion respectively. The San Francisco-based company confirmed today that is has raised a further $1.2 billion funding, led by China-based search giant Baidu.

As competition gets stiffer globally, emerging markets seem to be the company’s latest battleground, making it go on a fundraising sprint like it never has before.

The news comes right after Uber’s biggest rival in China, Didi Kuaidi, confirmed it has raised $3 billion more to add to its war chest. The news was first revealed on Sina, a Chinese-online media company, by CEO Travis Kalanick. TechCrunch revealed that Didi Kuaidi raised $3 billion along with $16.5 billion post-money valuation. Didi Kuaidi’s previous investors include Alibaba, Tencent, China Investment Corp., Softbank, and Beijing Automotive.

According to Sina, Uber has witnessed a doubling in its business volume in past one month alone, with 100 million app accesses each day. Unlike Uber’s previous financing rounds, the new capital could be used primarily for expansion purposes in China. Uber is making aggressive moves to establish itself as the face of reigning taxi services in emerging market, with China being no different. Uber is developing a regional model for China ‘Uber China’ as its standalone entity, letting investors put money into the company’s expansion efforts in one single area. In December 2014, Baidu invested in Uber with an eye on a partnership. Uber is working closely with Baidu to develop a robust local presence along with local staffing and integration with local maps and other services.

This summer, Uber’s competitor, Didi Kuaidi was reported carrying three times the passengers Uber did in China, hence the aggressive push to make it as incumbent taxi service.

Looking at the quickening temp across the start-up landscape, it can be easily derived that the ride-hailing company is leaving no stones unturned to raise money from hedge funds and accommodate additional investors, such as Baidu, the Chinese internet giant.

To date, Uber has officially raised $78.2 billion as its moves into new markets globally, disrupting existing taxi and other transportation industries. The San-Francisco-based company was founded in 2009 and is led by CEO Travis Kalanick.

Carrie Ann
Carrie Ann is Editor-in-Chief at Industry Leaders Magazine, based in Las Vegas. Carrie covers technology, trends, marketing, brands, productivity, and leadership. When she isn’t writing she prefers reading. She loves reading books and articles on business, economics, corporate law, luxury products, artificial intelligence, and latest technology. She’s keen on political discussions and shares an undying passion for gadgets. Follow Carrie Ann on Twitter, Facebook

Recent Posts

PepsiCo relinquishes control of Tropicana for $3.3 billion

PepsiCo relinquishes control of Tropicana for $3.3 billion

PepsiCo will sell Tropicana and other juice brands to a private equity firm in exchange for pre-tax proceeds of 3.3 billion dollars.
9 hours ago
Sanofi bets big on mRNA future with Translate Bio acquisition offer

Sanofi bets big on mRNA future with Translate Bio acquisition offer

Sanofi’s CEO Paul Hudson is dead serious about mRNA technology and capabilities with a $3.2 billion acquisition offer to Translate Bio.
10 hours ago
Top 6 Energy Dividend Stocks to include in your portfolio

Top 6 Energy Dividend Stocks to include in your portfolio

The entire energy sector yield hovers around 4%, according to the Energy Select Sector SPDR exchange-traded fund.
1 day ago
Monte dei Paschi performance below par in EU banks stress test

Monte dei Paschi performance below par in EU banks stress test

The depletion of capital at each bank under the test’s harshest scenario will be closely scrutinised, and could potentially lead to hostile takeovers
3 days ago
Nokia to launch T20 tablet with 10.36 inch display

Nokia to launch T20 tablet with 10.36 inch display

The Nokia T20 will sport a 10.36-inch display and will have 4 GB RAM along with 64 gigs of native storage.
4 days ago
Ford sees surprise Q2 profit despite chip shortage and manufacturing hassles

Ford sees surprise Q2 profit despite chip shortage and manufacturing hassles

“The business is ‘spring loaded’ for a rebound when semiconductor supplies stabilize and more closely match demand.”
5 days ago