Uber and the Goldman Sachs group have successfully worked out a $1.6 billion convertible debt funding round.
The online ride-sharing service company plans to use the money for the expansion of its services in international markets. There's also a plan to invest in research and development and enhance safety in order to make it more aligned with the laws and regulations of a city.
Uber is also currently negotiating to raise $600 million from hedge funds and international strategic investors. The amount will add up to the $1.2 billion that Uber raised in a financing round held in December. As a result, San Francisco-based Uber earned a total valuation of $40 billion, one of the highest valuations achieved by a closely held technology startup.
Since its establishment in 2009, the company has so far raised over $4 billion in funding, both through cash and convertible debt. Its services are now available in 277 cities found in 54 countries. Uber said that it would usually open in a new town every other day. The company now has around 2,000 employees.
The ride-sharing company has faced a number of challenges since the day it launched the service. This involves issues on passenger safety and resistance from licensed taxi drivers. In Europe, the company had to deal with a strong resistance, which was most notably felt from Germany.
Uber has also been sued or banned by regulators, from California to Brazil.
Travis Kalanick, Uber's CEO, announced that he will add 50,000 jobs in Europe. However, this can only be possible if European cities would change their regulations and allow Uber to operate with no legal obligation.
"We want to make 2015 the year where we establish partnerships with new European cities," said Kalanick when he was attending the annual Digital Life Design conference. "If we can find a regulatory framework that makes this a reality, we can promise jobs and less congestion. The impact we can bring to cities is huge."
Uber also plans to use its funds on enhancing its Uber Pool service. This type of service allows city passengers to split the trips and fares with each other resulting in a much cheaper riding experience. The service has already debuted in San Francisco, New York and Paris.
