The popular ride-share client, Uber, operates by allowing its users to request rides by downloading their app. The California based ride-share company has been receiving a lot of attention lately for various reasons, one of which involves the large amount of funds the company has raised to expand its business. According to Bloomberg, Uber has raised over a billion dollars with the help of Fidelity Investments. Many people have been wondering what Uber plans to do now that the company has been valued at $17 billion. While there are many people who believe that the the company’s valuation is incorrect, and represents nothing more than a fad – there are still many people who believe that Uber is very deserving of their new price tag. Uber’s ability to raise funds and increase its valuation have made it second only to Facebook, who is the only other company to raise funds at a higher valuation.
Many recent reports have tried to break down the reasons behind the company’s high valuation, citing that the $17 billion puts them up $13 billion from their last valuation. Bloomberg.com notes that the company may be able to prove its worth if they can sustain their identified market. Though some people are under the impression that Uber’s business plan is to replace taxi services; however, others believe that the company is more about the “efficient use of logistics.” Meaning that, eventually, the small start up company may be able to help other companies deliver goods more efficiently.
The company’s new found wealth increase has lead people to speculate what Uber will do with it’s additional funds. Some sources have noted that the company plans to expand into new markets and also introduce new products and features. Uber may even continue to work on strategies to lower the price, allowing the service to become accessible to a wider range of people. Uber has also integrated with Google Maps which now allows users who are seeking directions through Google to hail a ride through Uber as well. Uber has also recently announced that they have entered a partnership with AT&T which will put Uber’s drivers onto AT&T’s network and also allow the company’s mobile devices to be preloaded with the Uber app.
While the company’s take on ride-sharing has caused some controversy, new funds and a high price valuation prove that the company is ignoring the negativity and continuing to grow.
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