Uber aims for $1.5bn in funding round

UBER Technologies planned to raise $1.5 billion (R17.9bn) in a new funding round that would boost the car-booking start-up’s valuation to $50bn, a person with knowledge of the matter said.

Uber was still in early discussions with backers, said the person, who asked not to be identified because the talks were private.

Uber, which was previously valued at $40bn when it raised financing earlier this year, is benefiting from investors who view its car-booking technology as the future of transport. The company, led by chief executive Travis Kalanick, is using the cash to expand operations to cities across the globe.

Uber may also need funding for acquisitions, following a report by the New York Times last week that it had submitted a bid for HERE, Nokia’s maps business, for as much as $3bn.

Kristin Carvell, a spokeswoman for Uber, declined to comment. The Wall Street Journal earlier reported the new financing round.

Uber, which has one of the highest valuations for a closely held technology start-up, sought $2.8bn in February in its last funding round. It also closed $1.6bn in convertible debt from Goldman Sachs Group’s wealth management clients in January.

In addition to expanding into new locations, Uber needs money to invest in research and development and improving safety, and to expand its UberPool carpooling service.

Uber, founded in 2009, has expanded to about 300 cities in 57 countries. Uber has disrupted established taxi and limousine firms, and upset regulators, who have sued or banned it from California to Brazil. – Bloomberg