Transportation Startup Service Uber Raises $1.2 billion.
The four-year-old startup company has continued to become a tremendous success story, growing its operations up to cities in over 37 countries and providing transportation onto million of customers.
Uber initially began as a business that sent customers luxury cabs with a simple press of a button. It has since then manage to expand towards much more lower-cost cars and delivery service with its UberX service.
Its most latest funding round of up to $1.2 billion, soon to be $1.4 billion, after other investors had chipped in, includes the institutional investors, mutual funds, private equity and venture capital partners, Ubers stated in a blog post. That has valued the company to a total of $17 billion on top of the $1.2 billion in funding
Uber has already gained some high-profile backers, these indlude Google Ventures, which invested over $25o million during the previous year. However Uber did not name any of its new investors, there have been several reporting’s that one of them is a mutual fund giant Fidelity Investments.
Uber believes that it’s making some positive strides in the transportation industry, claiming its creating over 20,000 new jobs per month.
“With our growth and expansion, the company has evolved from being a scrappy Silicon Valley tech startup to being a way of life for millions of people in cities around the world,” said Travis Kalanick, Uber’s CEO, in a blog post.
“This ‘Uber’ way of life is really a reflection of our mission to turn ground transportation into a seamless service and to enable a transportation alternative in cities that makes car ownership a thing of the past,” he added.
Although, controversy is not strange to Uber.
Uber’s dynamic priceing model ha lead towards fare that increase by as much as eight fold during periods of extreme demand. During the previous winter, a massive snow storms and New Year’s Eve were main examples of when minimum fares had surged on above $100, and per-mile charges were more than $3o.