23 August 2019
Uber operates in more than 220 cities worldwide. Photo: Uber
Uber operates in more than 220 cities worldwide. Photo: Uber

Uber being valued at more than Twitter or Hertz

Investors in Uber Technologies Inc. are betting the five-year-old car-booking app is more valuable than microblog platform Twitter Inc. and car rental giant Hertz Global Holdings Inc.

The San Francisco-based startup is close to raising a round of financing that would value it between US$35 billion and US$40 billion, Bloomberg News reported Thursday, citing people familiar with the situation.

US mutual fund giant T. Rowe Price Group Inc. is in discussions to be a new investor, and existing investor Fidelity Investments is also set to participate in the funding, the people said.

“At this valuation, investors appear to be thinking that when Uber goes public, it might be worth US$80 billion to US$100 billion,” said Anand Sanwal, chief executive of CB Insights, a research firm in New York.

Such high valuations for tech startups are spreading internationally. In China, smartphone maker Xiaomi Corp. is in talks for a funding round that would value it at US$40 billion to US$50 billion, people familiar with the matter have said.

Uber is raising more money to finance its international expansion, people close to the situation said this month. The company’s car-booking services operate in more than 220 cities worldwide.

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