Fidelity Takes a Cab Ride: The $17 Billion Valuation of Uber | International Finance Institute
71 West 23rd Street
212-461-1061
250 Yonge Street
416-907-7208
Two Prudential Plaza
312-340-0785
100 Pine Street
415-358-1659
Oppenheimer Tower
310-807-0290
137 Cecil Street
+65 3158 2044
Queen's Road
+852 3973 3924
Hanover Square
+44 20 3468 5030
Mainzer Landstraße
+49 69 9579 8906
Business Centre OBC Suisse
+41 44 508 3376
Interpred, WTC
+359 2 489 0124
N Mandela Sq
+27 11 568 2369
Bligh Centre
+61 29 119 2946



Fidelity Takes a Cab Ride: The $17 Billion Valuation of Uber

In our Investment Banking Training Course, our students learn how to value corporations using 3 strategies: 1) the income approach; 2) the market approach and 3) the asset approach. Fidelity Investments will reportedly lead an investor group in a nearly $1 billion round of funding based on a corporate valuation of $17 billion.

FIDELITY INVESTMENTS LEADS GROUP WITH $17 BILLION VALUATION OF UBER

Uber Technology Inc., the internet/app based ride sharing service has recently been valued at an astounding $17 billion in its latest round of financing led by Fidelity Investments, according to multiple sources. Wellington Management Uber Valuation International Finance Institute, an Investment Management Firm, is also rumored to be part of the financing group.

Uber is said to be seeking funding of less than $1 billion to expand from the current base of 115 cities served thus far. Other firms are reportedly looking to join Fidelity and Wellington in this latest round of funding, so terms of the deal are subject to change. Uber’s CEO Travis Kalanick has been quoted as saying the valuation associated with the funding could be “record breaking”.

The San Francisco based company has previously raised a total of $49.5 million in 3 previous rounds of fundraising including investment from Benchmark Capital, Goldman Sacs, Menlo Ventures and Bezos Expeditions. Uber generates revenue by taking 20 percent commissions from its drivers and are located in numerous US cities, with plans to expand to international markets.

BOOMING START-UP CORPORATE VALUATIONS

The corporate valuation is the most recent in a line of head turning numbers that rank Uber as the world’s highest valued startup and would make the company more valuable than established public car rental companies like Hertz Global Holdings Inc. ($13.6 billion) and Avis Budget Group ($6.1 billion) and larger than any taxi company in the United States. Uber’s valuation has quadrupled since last year when Google Ventures and TPG Capital invested on a valuation of $3.5 billion.

If the deal goes through, it would also make the company more valuable than other recent tech start-up valuations like What’s App ($16 billion), Airbnb ($10 billion), Dropbox ($10 billion), and Groupon ($4.13 billion).

Kalanick and Garrett Camp have stated that they founded Uber in 2009 after they could not find a taxi on a trip to Paris, France. With a $17 billion corporate valuation, they shouldn’t have a problem now.

IS THERE A TECH BUBBLE FORMING?

With the soaring valuations in the start-up technology space, there are people who say this can’t go on forever. There are others that say that these valuations are justified. Traditional valuation techniques like the Discounted Cash Flow method would not merit these figures, but certainly there are other methods that can. So are we in a tech bubble? Only time will tell, but until then, please send me a black car. Those conventional taxis are so 2007!

facebooktwittergoogle_plusredditpinterestlinkedinmail

IFI North America

71 West 23rd Street
212-461-1061
250 Yonge Street
416-907-7208
Two Prudential Plaza
312-340-0785
100 Pine Street
415-358-1659
Oppenheimer Tower
310-807-0290

IFI Europe

Hanover Square
+44 20 3468 5030
Mainzer Landstraße
+49 69 9579 8906
Business Centre OBC Suisse
+41 44 508 3376
Interpred, WTC
+359 2 489 0124

IFI World

137 Cecil Street
+65 3158 2044
Queen's Road
+852 3973 3924
N Mandela Sq
+27 11 568 2369
Bligh Centre
+61 29 119 2946

Do you need more information? Fill the form below and a representative will contact you shortly.