The ride-sharing company is looking to build up its capital by planning to tap into institutional investors for a loan in the coming weeks.
Uber is seeking to raise more cash, as it has some fearsome battles to face on the ride-sharing market. Reportedly, the ride-hailing company has not managed to make any profit from its operations so far, despite covering nearly 500 cities worldwide. It has plenty of cash for now to expand its services, considering the fact that it recently drew a massive capital injection of 3.5 billion dollars from a Saudi Arabia’s sovereign wealth fund.
Uber now seeks to further raise 1 billion to 2 billion dollars in a leveraged loan, working with Morgan Stanley and Barclays Plc on the deal, an insider told Bloomberg. In its hunt for more users, Uber has committed to invest at least 1 billion dollars a year in China to compete with the local rival Didi Chuxing, formerly known as Didi Kuaidi.
But the dominant Chinese car-hailing app is not sitting still and it convinced Apple to contribute with 1 billion dollars, while also receiving an investment of about 600 million dollars from China Life Insurance. Uber is trying hard to profit from the huge potential found on the Asian markets, thus losing 1.7 billion dollars in the first three quarters of 2015 because of these expansions goals.