Uber announced a $1.2 billion round of funding today to help the ridesharing company go after Asian markets, add a ton of extra jobs and do some overdue (and much-needed) upgrades within the company, too.
Since launch Uber has now raised $2.7 billion, and the latest injection values the company at an eye-opening $40 billion. At current market capitalisation, that’s more than Twitter.
A lot more, in fact. Twitter is currently valued at a whisker over $25 billion. It’s been higher, of course, but the market cap has sunk with the stock price, which is down more than 45 percent this year.
Of course, Twitter is a publicly traded company with an actual market capitalisation value, whereas Uber’s valuation is essentially on paper. But on the other hand, the tech upgrade aside, Uber is in many ways an old-fashioned business that’s a proven moneymaker, with real people doing real jobs. Twitter is still struggling to turn a decent profit.
“In 2015 alone, Uber will generate over 1mm jobs in cities around the world and with that millions of people may decide that they no longer need to own a car because using Uber will be cheaper than owning one,” writes CEO Travis Kalanick on the Uber blog. “Parking could become less strained in our biggest cities, and city congestion may actually start to ease due to uberPOOL’s expansion and success.”
User’s far from a perfect company, of course, and Kalanick recognises the need for change in his post.
“Fortunately, taking swift action is where Uber shines, and we will be making changes in the months ahead. Done right, it will lead to a smarter and more humble company that sets new standards in data privacy, gives back more to the cities we serve and defines and refines our company culture effectively.”