Technology

Uber Announces $1.2 Billion Fundraising Round

Uber CEO Travis Kalanick AP

By Adam Vaccaro

December 4, 2014

1 minute to read

Six months removed from its last major fundraising announcement, and just weeks removed from perhaps its biggest PR kerfuffle yet, Uber has announced a $1.2 billion fundraising round.

That’s the same amount of money the company announced it had raised in June, which at the time put its valuation at higher than $18 billion. This time, the valuation is reportedly up to $40 billion.

In mid-2013, the ridesharing service was valued at $3.5 billion. Its valuation has skyrocketed as it has picked up in popularity, and as it has become clear that Uber has goals that go beyond transportation and into other possible on-demand services, like delivery.

In a blog post announcing the round, Uber CEO Travis Kalanick wrote that the company would look to expand into Asia with the new money.

Kalanick also touched on the recent firestorm surrounding the company. Last month, a senior executive floated the idea to a BuzzFeed editor that Uber company could investigate the private lives of critical journalists in an effort to smear them. The executive did not face any disciplinary action. Nonetheless, Kalanick said the company would work to shake the less-than-shining reputation it has assumed despite its popularity with users and investors.

“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. Acknowledging mistakes and learning from them are the first steps,’’ Kalanick wrote Thursday. “… Fortunately, taking swift action is where Uber shines, and we will be making changes in the months ahead. 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.’’

Earlier this week, Boston’s City Council held a hearing to discuss possible regulations for Uber and similar services. The taxi industry here, and across the world, has been fighting against the growth of ridesharing services, arguing they are unsafe and unfair due to a lack of regulations compared to those facing licensed livery services.