Uber raises unprecedented $3.5 billion funding round because it can
Uber is apparently on a quest to raise all the money left in the world.
The ride-hailing giant confirmed Wednesday that it has raised $3.5 billion from Saudi Arabia’s Public Investment Fund, the single largest round of funding ever for a private U.S. company.
To put that in perspective: This one $3.5 billion funding round is more than Uber rivals Lyft and Gett have raised combined in their entire history.
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The additional capital is part of Uber's previous round of funding, valuing the startup at $62.5 billion, according to the company.
Uber has now raised $11.5 billion in capital to date, according to data provided to Mashable by CB Insights, a venture capital database.
“We appreciate the vote of confidence in our business as we continue to expand our global presence," Travis Kalanick, Uber's CEO and cofounder, said in a statement.
For Saudi Arabia, the investment is part of a larger effort to diversify and cease being so reliant on oil, the price of which has cratered.
"We’ve seen first-hand how this company has improved urban mobility around the world and we’re looking forward to being part of that progress," Yasir Al Rumayyan, managing director of the investment fund, said in a statement. "As the Kingdom of Saudi Arabia's sovereign investment arm, we’re focused on achieving attractive long-term financial returns from our investments, while supporting Saudi Arabia’s Vision 2030, the blueprint for diversifying our economy away from oil."
Uber launched in Saudi Arabia in early 2014 and has previously committed $250 million to expand throughout the Middle East and Northern Africa. The startup has touted its impact on women in Saudi Arabia, who are still not legally allowed to drive.
The funding announcement comes just days after Uber announced a strategic partnership with and investment from Toyota, as more ride-hailing startups partner up with established car companies.
So why does Uber need to raise another $3.5 billion on top of all the money it already has? Well, it could be to fuel global expansion, or to steel itself for the growing number of regulatory battles, or to its aggressive fund price-cutting and marketing promotions.
On some level, though, the real answer is: Simply because Uber can.
For all the concerns in recent months about crazy valuations and a deflating tech bubble, confidence remains high in Uber's ability to own a big piece of this fast-growing market and eventually go public at an even larger market valuation.
Everyone wants a piece of Uber -- and Uber is more than happy to collect their money at the door.
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Topics Uber
Seth Fiegerman was a Senior Business Reporter at Mashable, where he covered startups, marketing and the latest consumer tech trends. He joined Mashable in August 2012 and is based in New York.Before joining Mashable, Seth covered all things Apple as a reporter at Silicon Alley Insider, the tech section of Business Insider. He has also worked as a staff writer at TheStreet.com and as an editor at Playboy Magazine. His work has appeared in Newsweek, NPR, Kiplinger, Portfolio and The Huffington Post.Seth received his Bachelor of Arts from New York University, where he majored in journalism and philosophy.In his spare time, Seth enjoys bike riding around Brooklyn and writing really bad folk songs.
