Uber valuation hits $40bn
The San Francisco-based taxi booking service is six times bigger today than it was 12 months ago
Uber's valuation has hit a record $40bn, making the taxi booking service twice what it was six months ago
Following a funding round that fetched another $1.2bn for Uber, the firm’s valuation hit a record $40bn, meaning that the taxi booking service is worth twice what it was six months ago. However, co-founder Travis Kalanick insists that rapid growth throughout 2014 has inflicted “significant growing pains” on the company.
The company is now looking to use newfound capital to broach the Asia-Pacific region as a more responsible entity
In December 2013 the service was operational in only 60 cities and 21 countries, and, in the space of only 12 months, Uber’s presence has grown six times larger to reach 250 cities across 50 countries. “This kind of growth has also come with significant growing pains. The events of the recent weeks have shown us that we also need to invest in internal growth and change,” said Kalanick in a company blog post. “Acknowledging mistakes and learning from them are the first steps. We are collaborating across the company and seeking counsel from those who have gone through similar challenges to allow us to refine and change where needed.”
The announcement comes after senior executive Emil Michael was criticised for threatening to dig up dirt on journalists, as reported by BuzzFeed. However, the company has swiftly apologised for any offence caused and is now looking to use newfound capital to broach the Asia-Pacific region as a more responsible entity. “Fortunately, taking swift action is where Uber shines, and we will be making changes in the months ahead,” says Kalanick. “Done right, it will lead to a smarter and more humble company that sets new standards in data privacy, gives back more to the cities we serve and defines and refines our company culture effectively.”
Crucially, Uber’s valuation puts its market capitalisation ahead even of American Airlines in the travel space, and slightly ahead of Twitter in the technology sector. Having started in 2009, the five-year old taxi booking service has evolved from a firm worth $3.6bn in August 2013 to one worth $40bn at the tail end of 2014. And if the company’s strategy to target the Asia pacific region pays off, the rate at which the firm is growing could continue far into the future.
