A $10 billion investment in Uber will fuel a huge expansion in the ride-sharing service.
(CCM) — Ride-sharing company Uber is preparing for a phase of massive expansion into new cities around the world, according to a BBC report.
The expansion will be made possible by a cash injection of up to $10 billion made by an investment group led by Japanese conglomerate Softbank and San Francisco-based Dragoneer, the report says. The two parties have entered into an agreement which may lead to the investment, it adds.
The investment group will reportedly buy shares in Uber, leading to a stake of more than 14% in the company.
Uber has been facing increasing competition around the world from app-based ride-sharing rivals, and the company has also been banned or may be forced to pull out of cities in countries including England, Denmark, Italy, Australia, Canada, and the U.S. If it goes ahead, the investment will allow Uber to concentrate its efforts more intensely in countries where it can run most profitably and free from operating restrictions imposed by local regulators.
Softbank has made a series of technology investments in recent years, including the purchase of U.K.-based chip design company ARM Holdings for $32 billion in 2016 and the acquisition of a controlling stake in U.S. telecoms company Sprint for $22 billion in 2016.
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