Popular but controversial US ride-sharing startup Uber is now valued at $40 billion, it said Thursday, twice what it was worth six months ago, after raising a fresh $1.2 billion in funding.<\/p>\n
Uber chief Travis Kalanick announced the latest funding in a blog post, saying the money will fuel expansion, especially in the Asia-Pacific region.<\/p>\n
“It was just a year ago that Uber was operating in 60 cities and 21 countries — today we are in over 250 cities in 50 countries,” he wrote.<\/p>\n
“We are six times bigger today than 12 months ago — and grew faster this year than last. This progress is remarkable, but it is in the coming years that Uber truly scales and the impact in cities becomes visible.”<\/p>\n
Kalanick added that “this kind of continued growth requires investment. To that end, we have just raised a financing round of $1.2 billion… This financing will allow Uber to make substantial investments, particularly in the Asia-Pacific region.”<\/p>\n
Earlier this year Uber raised $1.2 billion, giving it a value of $17 billion, but a spokesman Thursday said the company was now valued at more than twice that at $40 billion.<\/p>\n
The rapid expansion has caused deep tensions with traditional taxi drivers, especially in Europe.<\/p>\n
Founded in 2009 in California, Uber is best known for its smartphone app that lets people who need a ride connect with local drivers. The app uses GPS to put the user in contact with the nearest driver. Uber charges a commission for each ride.<\/p>\n
Uber has also faced scrutiny following negative comments about the news media from a top executive and revelations that it offered a “God view” of customers that could allow spying. The company hired experts to conduct a privacy review.<\/p>\n
Kalanick said the sudden growth “has also come with significant growing pains” and has shown “that we also need to invest in internal growth and change.”<\/p>\n
He said planned changes “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.”<\/p>\n
Kalanick said Uber has been a positive force around the globe.<\/p>\n
“In 2015 alone, Uber will generate over one million jobs in cities around the world and with that millions of people may decide that they no longer need to own a car because using Uber will be cheaper than owning one,” he said.<\/p>\n
“Parking could become less strained in our biggest cities, and city congestion may actually start to ease” due to a new carpooling system called uberPOOL.<\/p>\n
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