Uber, which only a few months ago was looking shaky as official taxi companies around the world protested and took court action against the company, has well and truly bounced back. The latest company valuations show the ride sharing startup company is raising more money than even Netflix, Dow Chemical and Blackrock.
In its latest fund raising effort, Uber is looking to raise $2.1 billion which gives it a valuation of $62.5 billion. Although this incredible growth will catapult its standing, experts opine that the company will continue to lag behind Apple, Nike, Facebook and Starbucks.
According to the latest financial data from Bloomberg, Uber has increased actual U.S. gross revenue by about 200 percent this year and is profitable in more than 80 cities around the world. The number of U.S. trips completed this year has increased 250 percent compared with the same period in 2014.
This makes the company one of the highest valued and best-known members of the “unicorn club”, a group made up of private companies with valuations higher than one billion.
The club faced a big test in November when mobile payment company Square, one of its most prominent members, went public. While other unicorns have not done so well with their initial public offerings (IPO), Square’s IPO went relatively smoothly despite a lowered pricing and valuation.
However, most financial commentators still say they question the lofty valuations of unicorn club members and their ability to generate earnings sufficient to match expectations of their worth. This was before Uber’s latest round of funding, which raised more than $10 billion in equity.
Uber’s aim is to have its transportation services in 350 cities around the world and branch into other services. It is also testing food and package delivery in some cities, and is even involved in developing self-driving cars.