Uber Technologies Inc. Chief Executive Officer Travis Kalanick said the mobile car service could fetch a “record-breaking” valuation at its next funding round.
“We are raising money right now,” Kalanick said. “This one could be record breaking. I think folks have seen what’s been reported.”
Uber, which has rolled out its ride-sharing service in 115 cities globally, is in talks with investors to raise money that will value the San Francisco-based company at more than $10 billion, people with knowledge of the matter said earlier this month. That would make Uber one of the most richly-valued private technology companies, along with Dropbox Inc. and Airbnb Inc.
“I think the opportunity that Uber is facing is a very, very big one,” Kalanick said. “We should finance against that opportunity -- so that you can get this to every major city in the world.”
Uber was founded by Kalanick and Garrett Camp in 2009. The company has raised $307.5 million from investors including Benchmark, TPG Capital and Google Ventures.
Asked about driverless vehicles, Kalanick said that he was a fan of self-driving cars. Uber customers aren’t just paying for the use of a car, but also a driver, which add to the cost, he said.
“When there’s no other dude in the car, the cost of taking Uber anywhere becomes cheaper than owning a vehicle,” Kalanick said.
While automated cars are still a ways off, Uber and its main competitor Lyft Inc. have faced numerous regulatory and legal challenges since getting started. Both startups were accused last week of racketeering in a lawsuit by Connecticut taxi and livery firms, which said the companies “prey parasitically” on established services.
To contact the editors responsible for this story: Pui-Wing Tam at firstname.lastname@example.org Reed Stevenson