The hi-tech car rental company Uber close to 40 billion USD market cap, if complete the negotiations of financing with T. Rowe Price Group Inc. The current investors from Fidelity Investments also are set to participate in the financing. Uber will collect at least 1 billion USD if the negotiations complete successfully. The funding is not yet completed and the terms and investors can still change, but now the signs received from the both sides are good. T. Rowe Price Group Inc have considered investing in Uber Technologies before and the deal is not yet confirmed.
The representatives of T. Rowe Price Group Inc and Fidelity declined to comment the rumors. If Uber Technologies get this funding, the assessment of the company market cap will be between 35 billion USD and 40 billion USD, which would be more than double compared to the evaluation of 17 billion USD in June this year. Then the assessment was a record for technology company startup in USA at the stage of direct investment. This place Uber Technologies ahead in the ranking of other elite technology startups like Airbnb and Dropbox, whose value is in the range of eleven digits.
The assessments of such magnitude and spread internationally. In China, the manufacturer of smartphone Xiaomi Corp negotiate for funding, which would make its market capitalization at 40-50 billion USD.
The value of 35-40 billion USD will put San Francisco-based Uber Technologies about 1.5 times biggest capitalization compared to the microblogging service Twitter and approximately the same size as the Giants Salesforce.com, Delta Airlines and Kraft Foods Group. As comparison the company for car rental Hertz Global Holdings has a market capitalization of 11.3 billion USD.
Uber Technologies is attempting to collect more money to invest in its international expansion. The company was found in 2009 and provides service for car rentals from mobile and computer devices. The car rental company is one of the largest in the world using the newest technology innovations and developments. In August this year, the CEO of Uber Travis Kalanick announced that it is considering worldwide expansion. Uber caused considerable controversy with entering new markets. Especially concerned are established taxi companies and companies renting limousines rental. Uber is faced with serious regulatory hurdles. Some drivers service also complained about the structure of commissions in the company.