Uber in final negotiations to raise $1Billion valuing autonomous vehicle unit to $10Billion
Uber in final negotiations with Japanese conglomerate Softbank Vision Fund and others to raise $1 Billion.
The company spent $20Million per month on developing self-driven vehicles.
Uber revenue up by 5% QoQ sitting at $2.95 billion and net losses are $939 million.
Uber has a total raised $20 Billion funds till now in debt and equity funding.
Uber has achieved a total valuation of $70Billion.
In this era of innovation Uber is also working to its level best since 2015 to bring more and more autonomous vehicles on road for public but it costs a lot to ride-hailing unicorn because it has to spend $20Million per month on developing self-driven vehicles and according to estimation it has till now spend total of $900 Million on autonomous vehicle technology since 2015. Therefore it is now negotiating with Japanese conglomerate Softbank Vision Fund and others to raise $1 Billion for its autonomous vehicles. According to a report of Wall Street Journey the deal is expected to close by next month.
Uber till now has raised $20 Billion in debt and equity funding and has achieved a valuation of $70Billion. The company is focusing to use raise $1 Billion in funds to enhance the unit’s valuation and growth. Other investors in this fundraising round include unnamed automaker according to wall street journal and existing backers including Softbank, Toyota, TPG growth, Fidelity and T. Rowe Price.
Waymo, owned by Alphabet is also reportedly looking to raise capital. This is going to be the first infusion of outside funding for the autonomous vehicle business, rolled out of Alphabet’s Google X. According to The sources, Waymo is going to raise capital at a valuation more times that of the AV company Cruise owned by General Motors. Raising fund from outside investors would assist limit costs and would allow Alphabet the path to display Waymo’s valuation for the first time in several years. Waymo, years ago, was valued at $4.5 billion but according to estimates, it will gain a valuation as high as $175 billion based on future revenue estimates.
Uber revenue up by 5% QoQ sitting at $2.95 billion and up 38 percent year-over-year and net losses were $939 million. On putting emphasis on the business of Uber. Uber Technologies has clocked in annual revenue of $11.3 Billion in 2018, 43% hike w.r.t 2017. The company has also shallowed its losses from $2.2 Billion to $1.8 Billion in 2018.
Uber has released its booking figure which was up by 45% from 2017 and it had 50 billion bookings. Uber Technologies Inc has also acquired Middle East rival and ride-hailing competitor Careem for $3.1 billion. It is going to pay $1.4 Billion in cash and $1.7 Billion in convertible notes in a deal to own complete ownership of Careem. The deal got finalized after more than nine months of negotiations between the two parties and Uber succeeds in attaining much-needed victory after a series of overseas divestments.
This deal will enhance the share price of Uber by 13% from the last one that was observed more than a year ago when SoftBank Group Corp led the funding round. Now new Uber share price is $55 per piece.
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