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Uber Raises $3.5 Billion From Saudi Arabia (fortune.com)
An anonymous reader writes: Ride-hailing giant Uber announced Wednesday that it had closed $3.5 billion in new funding from Saudi Arabia's Public Investment Fund in an effort to shift the country's reliance on oil revenue. Also part of the deal, Public Investment Fund managing director Yasir Al Rumayyan will join Uber's board. The funding will not affect Uber's valuation of $62.5 billion. The company has said in the past that it plans to invest $250 million in the Middle East, where it currently operates in 15 cities across nine countries. Last week, Uber formed a "strategic partnership" with Toyota to provide its drivers with more affordable car purchase and lease terms.
Their primary asset is their customer base, and their proven ability to get more customers. Your right that the software, the core is the business, could be reproduced for under a million dollars. Getting millions of customers and putting together a team who can consistently run the business so succesfully is quite a bit more difficult.
Ultimately the value of a company (to an investor) is based on a) their projected profit over the next five to ten years or so and b) how consistently they meet projections. Uber's revenue has been more than doubling each year, and they've hit pretty close to their projections. They achieved profitability in the US just a couple of months ahead of schedule.
On the other hand(s), their current numbers don't justify a $50 billion valuation, especially given the legal issues - most cities do in fact have licensing laws for taxis and car services. (Love the laws or hate them, the laws do exist.) The investment money is increased by the fact that people want to invest in the hot new thing, Uber is hip.
They're trying to squeeze small US and Canadian producers out of business as well as hit Russia.
They are actually trying to squeeze Daesh,
They're mostly trying to squeeze their mortal enemy Iran
Interesting that these three Slashdot foreign policy experts all disagree on the Saudis' motives. It's almost as if they have no fucking idea what they're talking about.
I've learned that they're worthless, so I don't read AC comments anymore.
HTML fail... here;s the post again.
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No, they're not allowed to drive, period. They also must wear burkas when in view of the public - so the moment they step outside they must be fully dressed. Not wearing one, or driving is a crime and there have been cases tried under Shariah law.