Uber has received $3.5 billion from the Saudi Arabian Public Investment Fund. The investment gave Uber a key partner for its Middle East expansion.
The recent gain valued the American multinational online transportation network company at $62.5 billion. This makes Uber the number one highly valued, capital-backed startup company in the world.
The company's chief executive officer and co-founder Travis Kalanick called Saudi Arabia's investment a "vote of confidence in our business."
"Our experience in Saudi Arabia is a great example of how Uber can benefit riders, drivers and cities and we look forward to partnering to support their economic and social reforms," said Kalanick in a statement.
The Saudi Arabian investment will gain Uber another member for the company's board. Yasir Al Rumayyan, Saudi fund managing director, will join other Uber board members including Arianna Huffington, co-founder of Huffington Post, and Bill Gurley, general partner at Benchmark Capital.
"We've seen first-hand how this company has improved urban mobility around the world and we're looking forward to being part of that progress," said Al Rumayyan in a statement.
Uber's operations in Saudi Arabia started in 2014. Currently, Uber has about 19,000 drivers catering to over 395,000 consumers who are active users of the platform.
The company's expansion comes with several lifestyle products that will fit into new markets. In 2015, Uber introduced a cash payment option in selected markets including Saudi Arabia, Jeddah and Riyadh.
The American company has yet to say if it is planning to hire female drivers in Saudi Arabia. While religious edicts do not allow women to drive, there are no formal laws that prohibit women from doing so.
Uber's recent gain from the Saudi Arabian Public Investment Fund signals the company's departure from the startup investment environment.
The investing climate has shown several retrenchments in the past few months due to the high valuations scrutiny many tech startups and companies are facing. Uber's recent gain, however, shows high-profile startup companies that enjoy wide range consumer adoption can still manage to demand investment despite recent funding drought.
Photo: Mark Warner | Flickr
