Uber closes new financing round

Courtesy of Uber

Uber raised $1.2 billion in financing on Thursday. The company is currently valued at around $40 billion and is looking to expand its services to more countries.

Uber closed a new funding round, raising over $1.2 billion from investors, on Thursday.

Uber is a new form of taxi transportation that allows users to request a car within minutes. Users can ask for cars through their mobile phones and have various options with regards to the type of car they want. From most cost-efficient to most luxurious, Uber offers the UberX, Taxi, Black, SUV, and LUX cars that users can choose from. With this new funding round, Uber is now worth approximately $40 billion, up from its prior value of $17 billion. Uber is now worth more than companies such as Twitter and Tesla.

“Uber has offered a new way of traveling that rests on the power of mobile technology,” Rishabh Jain (12) said. “I personally think Uber will replace the conventional taxi in the coming years.”

Through Uber, customers also have the option to split car fares with the person they ride with. Using Uber’s mobile app, users can carpool with another person and then pay half the price compared to if they ride alone. Through this service, Uber is encouraging customers to ride with each other.

Another feature that Uber allows for is the ability to view prices before requesting a ride, instead of having it vary based on mileage. If users accept the rate and request a car, they can then pay through their mobile phones using e-commerce.

“If I didn’t have a car I think [Uber] would be useful, it’s basically a more efficient taxi,” Justan Su (11) said. “It gives you more possibilities for traveling.”

Uber currently operates in 51 countries and is “expanding globally” according to the company’s website. Popular cities where Uber functions include San Francisco, New York City, Oxford, and Amsterdam.

Uber’s main competitor is Lyft, another company that allows users to request cars whenever they need to get from one place to another. Competition between both companies has been aggressive and both have been trying to steal business away from one another, especially in cities where driving and parking are tough. For example, Uber booked out 5,560 Lyft cars so that Lyft would not be able to provide its services to other customers that same day.

Back in April, Lyft also raised $250 million to more effectively promote its services and compete with Uber. With Uber’s new investment, however, the company plans to expand on its range of services and expand into more countries worldwide.