Uber Confirms A New Round of Funding and AT&T Partnership.
During the ReCode’s Code Conference held on Wednesday, Travis Kalanick, Uber CEO had confirmed that the company was undergoing a new round of financial funding. While he did no reveal that exact amount that the company is trying to raise, Kalanick did comment that it would be “record-breaking”
Kalanick also seemed to have hinted on that the accuracy of a report by the Wall Street Journal a while back, which has it set down that the total amount of funding to be at $500 million and stated that the company’s valuation is reaching to be around $17 billion. A number that would make it more than quadruple its current $3.5 billion valuation.
Investors that are involved with this round has been said to include General Atlantic, BlackRock, and Technology Crossover Ventures.
Currently, Uber has raised over $307.5 million from Benchmark, Google Ventures, TPG Growth, Jeff Bezos, Crunchfund, Goldman Sachs, First Round Capital, Lowercase Capital, and much more. During the previous August, the company raised a total of $258 million round. If reports done around that time are deemed to be corrected, this round would more than double its entire funding as of date.
From what’s been gathered, the reason behind this new round is funding is partially to be used for hiring, these would include political. Uber has previously ran into regulatory and legal trouble within every city it has expanded towards within the United State, one of it most recent is being slammed with a lawsuit form over 14 taxi companies from Connecticut. The company currently has operations in a total of 150 cities around the globe and its quite understandable that it would need to gain some people on its side with knowledge of how to operate inside of those government.
While Kalanic has boasted that his company is “20 times bigger” than Lyft, he pointed out that Uber sill needs to have “a relative cash advantage.” An extra $500 million would certainly give them that.
Furthermore, With this recent news also comes along another announcement from Uber during the conference, in which in the company had entered into a partnership with AT&T, which means that Uber drivers will not use phones running on AT&T network, but the application will arrive pre-loaded onto an unspecified number of AT&T devices.