Seeking Alpha

Uber raises $1.2B at $17B valuation; GSV Capital rises

  • Uber has raised $1.2B at a whopping $17B pre-money valuation - well above the $10B valuation the app-based taxi service platform was reportedly targeting not too long ago.
  • The funding round makes Uber, which receives a 20% cut on enabled taxi fares, nearly as valuable as LinkedIn, and more valuable than Yahoo after backing out its Alibaba/Yahoo Japan stakes.
  • GSV Capital (GSVC +4.3%), which has invested in Uber rival Lyft and plenty of other late-stage startups, has received a boost from the report. Google invested in Uber last year at a much lower $3.5B valuation.
  • In a Q&A, CEO Travis Kalanick notes Uber is now in 128 cities and nearly 40 countries, and is experimenting with an expansion into logistics services. A courier service called Uber Rush was recently launched in Manhattan.
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Comments (12)
  • june1234
    , contributor
    Comments (3200) | Send Message
     
    Only in America. a company with an app that allows users to order a taxi or a private car comes in at $17B.
    6 Jun 2014, 05:34 PM Reply Like
  • platonicbomb
    , contributor
    Comments (1490) | Send Message
     
    People love it here in India.
    9 Jun 2014, 05:16 AM Reply Like
  • banellie
    , contributor
    Comments (11) | Send Message
     
    I just read that the total taxi and limousine market is 11 billion. This isn't going to end well for investors, but consumers should win :)
    7 Jun 2014, 01:57 AM Reply Like
  • Deja Vu
    , contributor
    Comments (1469) | Send Message
     
    Said the princely investment banksters "While the music's playing, we have to dance and the tech bubble music's still playing"

     

    What really troubles me is some of these tech bubbles are getting themselves included in the indexes and thereby every one of us is paying the banksters as they laugh all the way to the bank.
    7 Jun 2014, 07:56 AM Reply Like
  • feedtheworld
    , contributor
    Comments (446) | Send Message
     
    17B?????? why? can someone please tell me why a app that allows me to get a ride is worth 17B? (more if you believe the ceo and co-founder on cnbc)

     

    I just want someone who gave UBER that 1.2B in new money, please tell me where you went to school and which financial or economical model you used to validate this return on investment?

     

    Maybe UBER should go on shark tank so we can see what the sharks say about this funding and valuation?

     

    here is my favorite quote by Sam Hamadeh “VCs [that] are investing in the ‘sharing economy’ will soon encounter the ‘regulated economy.’ ”
    7 Jun 2014, 10:47 AM Reply Like
  • RS055
    , contributor
    Comments (3309) | Send Message
     
    Looks like the San Fran MTA has some issues with Uber?

     

    http://bit.ly/1kHP5qf
    7 Jun 2014, 01:37 PM Reply Like
  • IncomeYield
    , contributor
    Comments (2425) | Send Message
     
    These sites are "matching" not "sharing". Like dating sites.
    You have it and I want/need it, but I prefer not to own it outright or pay list price.

     

    Ebay and Craigslist were the early movers.

     

    Airbnb and Uber happen to be in the news because of private valuation.
    9 Jun 2014, 12:52 AM Reply Like
  • Moon Kil Woong
    , contributor
    Comments (11552) | Send Message
     
    The one good thing I can say about Uber is it blows a great hole in company's green machine of allowing only so many taxis at ridiculous prices in a city for huge licensing fees. The bad thing is that 1) it only takes 1 whacko to sign up to do something horrible to passengers 2) There is no real barrier to entry 3) It's not really tech oriented at all.

     

    That said, the idea is a great one.
    7 Jun 2014, 12:43 PM Reply Like
  • Stable Book Value
    , contributor
    Comments (8) | Send Message
     
    True. They are beholden to both their suppliers and their customers. Both have easy substitutes (with their competitors) and no real reason to stay besides inertia. Lyft and Sidecar are both good competitors with exactly the same product.

     

    This is a good example of the first-mover advantage. But like most tech companies they are just some app developers with a good marketing team.
    8 Jun 2014, 03:33 AM Reply Like
  • JoeNextDoor
    , contributor
    Comments (187) | Send Message
     
    19 billion for a messenger app.
    17 billion for a taxi-booking app.

     

    All makese sense.

     

    No there is no bubble. Now move along.
    9 Jun 2014, 11:31 PM Reply Like
  • platonicbomb
    , contributor
    Comments (1490) | Send Message
     
    It's overvalued, yes, but anyone here with money would prefer to use Uber because it is much more convenient and the service is excellent.
    10 Jun 2014, 01:29 AM Reply Like
  • Mike Arnold
    , contributor
    Comments (2020) | Send Message
     
    It takes away uncertainty from the get from point A to point B problem. Nice to be able to sit at your apartment and get picked up (getting notification via phone) rather than hail a cab from the street corner.
    10 Jun 2014, 07:03 PM Reply Like
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