# Saudi Arabia Gives Uber $3.5 Billion Cash Infusion



## UberEricLong (Oct 28, 2015)

*Largest single investment ever made in private company...*

SAN FRANCISCO - In its quest to build a global empire, Uber has turned to the Middle East for its biggest infusion of cash from a single investor.

Uber said on Wednesday that it had raised $3.5 billion from Saudi Arabia's Public Investment Fund, the kingdom's main investment fund. The money was part of the ride-hailing giant's most recent financing round and continued to value the company at $62.5 billion. The investment does not cash out any of Uber's existing investors.

As part of the investment, a managing director at the Public Investment Fund, Yasir Al Rumayyan, will take a seat on Uber's board, joining Uber's chief executive, Travis Kalanick, and other directors, including Arianna Huffington.

"We appreciate the vote of confidence in our business as we continue to expand our global presence," Mr. Kalanick said in a statement. "Our experience in Saudi Arabia is a great example of how Uber can benefit riders, drivers and cities and we look forward to partnering to support their economic and social reforms."

Uber, which has viewed the Middle East as an important area in its expansion, said the investment further aligned the company with Saudi Arabia as the kingdom planned to transform its economy, reducing its dependence on oil and improving employment.
The investment from Saudi Arabia is one of the biggest single investments collected by the technology world's top privately held companies. Uber, whose valuation makes it Silicon Valley's most valuable private business, has collected billions at a rapid clip over the last three years.

Uber has drawn from a wide variety of investors, including traditional venture capital firms, mutual fund giants like BlackRock and wealthy clients of firms like Goldman Sachs and Morgan Stanley. Other sovereign wealth funds like that of Qatar have also invested.

Other private tech darlings have been busy raising money as well. The messaging company Snapchat raised $1.8 billion in its most recent round, according to a regulatory filing last month. Among Snapchat's new investors in the round were the Alibaba Group of China and the investment firms General Atlantic, Sequoia Capital, T. Rowe Price and Lone Pine Capital. Some of those investors invested at different valuations, according to a person briefed on the financing who spoke on the condition of anonymity because the details were private.

Other smaller tech companies have not fared as well in raising money over the last several months. Some so-called unicorns, the term used to refer to businesses valued at more than $1 billion, have struggled to collect new investments, and some, like Jawbone, have had to raise money at lower valuations.

ber is racing to defend its territory - which covers 460 cities in more than 69 countries - against incumbents in other regions like Southeast Asia and Europe. China, in particular, is a difficult battleground, as Uber is spending millions in a subsidy war with Didi Chuxing, the dominant ride-hailing start-up in the country. Both companies have made no indications that they will back down.

Though Uber dominates the American market for ride-hailing, it has increasingly seen overseas markets as crucial to its growth.

Among Uber's increasingly important overseas markets is the Middle East, where the company has already said it plans to invest $250 million. The service operates in 15 cities and nine countries in the region, including Saudi Arabia.

"We've seen firsthand how this company has improved urban mobility around the world, and we're looking forward to being part of that progress," Mr. Al Rumayyan said in a statement. "As the Kingdom of Saudi Arabia's sovereign investment arm, we're focused on achieving attractive long-term financial returns from our investments, while supporting Saudi Arabia's Vision 2030, the blueprint for diversifying our economy away from oil."

The ride-hailing start-up said that in the Middle East it now has over 395,000 active riders, up fivefold from a year ago, and 19,000 drivers. Uber said that in Saudi Arabia - where women cannot drive - it has sought to aid the kingdom's Vision 2030 plan, which includes more than doubling the number of women in the overall work force by 2030, to 30 percent. Already, roughly 80 percent of Uber's riders in Saudi Arabia are women, according to the company.

Meanwhile, Saudi Arabia has looked for ways to expand its economy beyond oil, with the Public Investment Fund - expected to grow to $2 trillion under management - serving as a crucial part of that strategy. Investing in an American company like Uber, however, could run counter to Saudi Arabia's threat to sell off investments in the United States, issued during discussion about a bill in Congress that would allow the kingdom to be held responsible in American courts for any role in the Sept. 11, 2001, attacks.

Part of Uber's possible attraction in bringing in a sovereign wealth fund like Saudi Arabia's is that such investors have far longer investment horizons than venture capitalists, who generally seek to cash out their investments after seven to 10 years.


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## Leftright? (Mar 11, 2016)

Ok great, now return the rates back to where they started so the drivers can make money.

Until then, I wont drive, especially now that I know there is plenty of money, not driving for $7 per hour. U just ran out of excuses for impossible rates.

Went from over $2 to under a buck and I'm reading about how many billions are being invested?


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## Fuzzyelvis (Dec 7, 2014)

UberEricLong said:


> *Largest single investment ever made in private company...*
> 
> SAN FRANCISCO - In its quest to build a global empire, Uber has turned to the Middle East for its biggest infusion of cash from a single investor.
> 
> ...


So much for trying to give women jobs.


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## UberEricLong (Oct 28, 2015)

Leftright? said:


> Ok great, now return the rates back to where they started so the drivers can make money.


Unfortunately, my first impression was now they can continue continue to keep rates artificially low.


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## Leftright? (Mar 11, 2016)

My car is parked.


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## SEAL Team 5 (Dec 19, 2015)

Fuzzyelvis said:


> So much for trying to give women jobs.


Classic. With tensions in the Middle East so high, I wonder if James River wants to dabble in the Uber Car Bombings insurance market?


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## sellkatsell44 (Oct 25, 2015)

Puff piece

I mean it's nice they got additional funds and maybe it's a hint that they're working on, or close to finishing and will implement, something that will elevate uber to the next level. A sustainable one hopefully.

Until then 

*yawn*


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## SEAL Team 5 (Dec 19, 2015)

Leftright? said:


> now that I know there is plenty of money
> 
> Went from over $2 to under a buck


They need that money for all the upcoming lawsuits. I think NJ, Arizona and a few more states are proceeding with the same suit that was settled in CA and MA. You are so right about the started at over $2 and now sub $1".


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## SacTownDood (Apr 22, 2016)

Coming soon. Detroit rates for everybody!


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## UberReallySucks (Jul 17, 2015)

SEAL Team 5 said:


> Classic. With tensions in the Middle East so high, I wonder if James River wants to dabble in the Uber Car Bombings insurance market?


Well sure! Why not? Since every claim is denied anyways...


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## Teksaz (Mar 16, 2015)

This is one of the funniest quotes in the article.

_"Mr. Al Rumayyan said in a statement. "As the Kingdom of Saudi Arabia's sovereign investment arm, we're focused on achieving attractive long-term financial returns from our investments"_

No one will ever see any financial returns on their investments with Goober.

Watch out for low flying planes, Travis.


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## uberdriverfornow (Jan 10, 2016)

They will never see that money again.

We just need to wait it out until Juno comes our way. They will be the TNC industry's "uncarrier". (think Tmobile)

Right now, there is no competition. When Juno comes they will be the savior.


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## Leftright? (Mar 11, 2016)

That only works IF drivers are dumb and desperate enough to drive for less than half of the original rates.

My car is still parked.


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## LA Cabbie (Nov 4, 2014)

uberdriverfornow said:


> They will never see that money again.
> 
> We just need to wait it out until Juno comes our way. They will be the TNC industry's "uncarrier". (think Tmobile)
> 
> Right now, there is no competition. When Juno comes they will be the savior.


Nope, Marco is planning on joining the $1 billion dollar club.


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## uberdriverfornow (Jan 10, 2016)

LA Cabbie said:


> Nope, Marco is planning on joining the $1 billion dollar club.


What does that mean ?


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## LA Cabbie (Nov 4, 2014)

uberdriverfornow said:


> What does that mean ?


I'm certain you have heard and probably used Viber before? Talmon Marco created it. He recently sold it to some Japanese company for $900 million dollars. Half of that money went to investors. What Marco is really looking for is Uber coming in and buying him out. Does that make sense?


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## uberdriverfornow (Jan 10, 2016)

LA Cabbie said:


> I'm certain you have heard and probably used Viber before? Talmon Marco created it. He recently sold it to some Japanese company for $900 million dollars. Half of that money went to investors. What Marco is really looking for is Uber coming in and buying him out. Does that make sense?


Yes, because thats what companies in industries that have no competition do, they buy out good companies so they can keep profits to a maximum. However I was under the impression that Juno was owned by former drivers ?


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## LA Cabbie (Nov 4, 2014)

uberdriverfornow said:


> Yes, because thats what companies in industries that have no competition do, they buy out good companies so they can keep profits to a maximum. However I was under the impression that Juno was owned by former drivers ?


Nope, Juno is not owned by drivers. Marco said he will give current and full time Juno drivers equity only good when and if the company IPO's.

Marco is pulling a SKG.


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## UberReallySucks (Jul 17, 2015)

UberEricLong said:


> *Largest single investment ever made in private company...*
> 
> SAN FRANCISCO - In its quest to build a global empire, Uber has turned to the Middle East for its biggest infusion of cash from a single investor.
> 
> ...


Great deal for Uber! No so much for the Saudis! They basically just unknowingly purchased $ 3.5 billion worth of pre-paid Uber Pool rides. 
Trump would have never been able to pull this one off!


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## LA Cabbie (Nov 4, 2014)

UberReallySucks said:


> Great deal for Uber! No so much for the Saudis! They basically just unknowingly purchased $ 3.5 billion worth of pre-paid Uber Pool rides.
> Trump would have never been able to pull this one off!


The truth of the matter is, no cab driver EVER goes hungry. Why? Because you are ALWAYS making money. Granted it's NOT a lot. Uber is the PERFECT business model. Zero liability, no risk, and in the time it takes you to hit the 'start meter' button, Uber has already made more than what would take you have half an hour and several miles to earn PLUS you have ALL the risk and liability AND in addition YOU PAY for both gas and maintenance.

Uber's cut averages to $3 per ride world wide they have 3 million daily trips. This means Uber is clearing easy $10 million dollars a day. This translates to an easy $4 billion dollars a year in PURE PROFITS.


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## SEAL Team 5 (Dec 19, 2015)

Teksaz said:


> Watch out for low flying planes, Travis.


I can see it now, "we've noticed that you have been passing on many fares, at Uber our goal is to service our customer. Please contact Uber Muslim at your earliest convienence so that we may schedule your beheading" and thanks in advance for reaching out.


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## Flarpy (Apr 17, 2016)

LA Cabbie said:


> Uber's cut averages to $3 per ride world wide they have 3 million daily trips. This means Uber is clearing easy $10 million dollars a day. This translates to an easy $4 billion dollars a year in PURE PROFITS.


Unfortunately that's not exactly the case, as this article notes:

http://www.forbes.com/sites/briansolomon/2016/01/12/leaked-ubers-financials-show-huge-growth-even-bigger-losses/

Uber is trying to grow so fast that it burns through a tremendous amount of cash. And while the numbers in the above article are from a year ago, there's no reason to believe that they've slowed.

"Such huge losses would put most companies out of business, but not Uber. The world's largest private venture-backed startup has raised more than more than $9 billion in funding, including $2.1 billion in a round made public in December. Those huge fundraising totals are enabling Uber's growth-fueled spending spree and will continue to do so for the foreseeable future."

Uber is selling investors pure greed. Uber says to them, "If we can grow fast enough, in a decade we'll be generating a hundred billion dollars a year!" Investors see themselves swimming in a lake of gold and pump a ton of dough into Uber based on those hopes.

Is it a ponzi scheme? Only time will tell. It certainly has all the trappings of one.


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## UberReallySucks (Jul 17, 2015)

Flarpy said:


> Unfortunately that's not exactly the case, as this article notes:
> 
> http://www.forbes.com/sites/briansolomon/2016/01/12/leaked-ubers-financials-show-huge-growth-even-bigger-losses/
> 
> ...


Not to forget all the lawsuits they are settling, all the palms they're greasing, and China has literally been their worst fiasco with now DIDI and other Chinese companies kicking their ass in China after spending billions of dollars on that venture alone.


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## Ca$h4 (Aug 12, 2015)

$3.5 Billion for a 5% stake. Top Dollar (Tiffany Twisted Investment) for an app that can be duplicated for $100K in 2 weeks as is presently being done in Austin, TX. Welcome to Uber's Hotel California. "Check-in anytime but you can never leave." Locked-in with no IPO exit. $3.5 billion gets you a board seat on the Titianic.

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## Taxi Driver in Arizona (Mar 18, 2015)

The old adage about a fool and his money applies quite nicely here.


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## Ca$h4 (Aug 12, 2015)

Taxi Driver in Arizona said:


> The old adage about a fool and his money applies quite nicely here.


Saudi's "Public Investment Fund" bought the 5% stake. Evidently, they have bought Uber's "Growth Story." The Saudi Royals collect companies and board seats of the latest Trending companies - companies with Growth Momentum. A $3.5 billion loss wouldn't mean that much to them, since the fund probably has trillions of dollars. I agree they do many foolish investments, but $3.5 billion is not going to bust them. It's probably mostly political -- the Silicon Valley poor boy social climbers get a chance to hob nob with Royals. The Davos club. Article below cites a Saudi Princess.

*http://www.vanityfair.com/news/2016...-domination-a-board-of-political-heavyweights*


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## Flarpy (Apr 17, 2016)

The Saudis were an easy mark. Seeing that their economy is on the verge of major problems (I won't say disaster, don't think it's gotten to that point yet) due to the low price of oil, they're desperately throwing money into pretty much everything _other _than oil right now.


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## Leftright? (Mar 11, 2016)

Its a return investment, look how much gasoline and engine oil we use driving around for less than minimum wage


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## Homebrand Taxi (Mar 30, 2016)

What a coup! A country with one of the worst human rights records in the world, that has been the slowest OPEC member state to diversify its economy to buffer itself from what to do when all that compressed prehistoric forest runs out, gets a seat at the Uber table.


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## space ghost (Sep 19, 2015)

Travis is an idiot. His goal has been to take over the transportation business, but that is impossible. Yes, he has seriously disrupted and hurt said business, but the transportation business is too big to be engulfed by one company, especially an idiot like Travis.He went to the Saudis because he's out of money, and 3.5 bil is pocket change to them. He can keep the train rolling for now, but you can bet no more investment money to be found after this. He will blow through this in time


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## space ghost (Sep 19, 2015)

He underestimates people's loyalty, lesson number one in the trans business, I need a ride. When the money runs out, and it will, the vultures will swoop. He thinks he can drive everyone out of business and monopolize transportation, but his dumbass thought too big. If he had kept it the way he started it then he could have done quite well, but greed will bury him. You consumers enjoy your cheap rides for now, they won't last. And anybody who thinks that driverless cars are coming soon to save the day most likely struggle to walk and breathe at the same time.


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## Ca$h4 (Aug 12, 2015)

Lots of assumptions about Uber's future growth. Building a article on Uber's unaudited numbers. Who trusts Uber?

*http://www.chicagotribune.com/news/...fd-11e6-8329-6104954928d2-20160602-story.html*


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