Uber Raises $200M For Emerging Market Expansion

In its latest move towards building muscle against ride-hailing companies in the Asian market, Uber has raised another $200 million from Russian billionaire Mikhail Fridman’s investment fund, LetterOne (L1).

With the latest round of funding under its belt, Uber now plans on going the extra mile to further expand its presence in emerging markets, including India, where it faces stiff competition from Ola, China, where Didi Kuaidi is the largest ride-hailing app company, and Southeast Asian countries, where it is fighting Grab, which runs a multi-market operation across various countries. The company reportedly also plans on expanding its presence in the Eastern Europe market.

“Every day, millions of people rely on Uber to get from A to B. Hundreds of thousands of drivers use our app to make money,” said Travis Kalanick, Uber’s CEO, in a statement. “Our goal is simple: reliable and affordable transportation everywhere, for everyone, at the push of a button. L1’s knowledge of emerging markets will be crucial in helping us make cities more accessible, opening up more possibilities for riders and more opportunities for drivers.”

The timing of the funding is particularly crucial to Uber’s growth in emerging markets, as not only has Uber sent its international competitors into a money-raising spree but it has also motivated its top competitors to form a coalition that supports users from partner networks by allowing them to pay in their local currency when traveling to other countries.

Since further details about the investment weren’t revealed, it remains unclear whether the latest round of funding was a standalone investment or if it was part of Uber’s plan to raise its valuation to $62.5 billion, as TechCrunch pointed out. “It’s early days, so we’re waiting before we say more,” an L1 spokesperson reportedly said.

While the $200 million investment will most definitely help Uber’s market and total valuation, it comes on the heels of two class action lawsuit settlements for which the company has agreed to pay $28.5 million. The two lawsuits alleged that the company mislead its users with its safety promises, justifying its $1 safety fee.