, Columnist
Uber Needs an $11 Billion War Chest
The ride-sharing pioneer is on track to become profitable, but it needs cash to keep growing.
Survival of the fittest.
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The decision by Saudi Arabia's sovereign wealth fund to put $3.5 billion in Uber is further evidence of the ride-sharing company's spectacular success in attracting top-flight investors. But what will Uber do with its cash pile, which now exceeds $11 billion?
There are two easy answers -- one for haters and one for boosters. The former would say Uber burns the money, the latter would point to the enormous financial resources required for the company's top-line growth and geographic expansion. Both would be right -- but only to a degree.