Uber’s valuation of $17 billion places it at top of Internet startup club

In this photo illustration, a smartphone displays the

In this photo illustration, a smartphone displays the 'Uber' mobile application which allows users to hail private-hire cars from any location on June 2, 2014 in London, England. Photo Credit: Getty Images / Oli Scarff

advertisement | advertise on newsday

Uber Technologies Inc. is creating a new category of hot startup: the $17 billion club.

The San Francisco-based transportation service, which lets people order private town cars and other vehicles from their smartphone, has raised $1.2 billion in a new financing led by Fidelity Investments.

advertisement | advertise on newsday

The funding positions the company at the front of a pack of Internet startups, at a pre-money valuation of about $17 billion, up from $3.5 billion in a financing last year.

Other investors in the new round include Wellington Management, Summit Partners, BlackRock Inc., venture capital firm Kleiner Perkins Caufield & Byers, and existing investors such as Google Ventures and Menlo Ventures.

Uber Chief Executive Officer Travis Kalanick said he was keeping the round open to strategic partners that might pitch in an additional $200 million, though he declined to name possible partners.

"This is about capitalizing for the opportunities that we see ahead of ourselves," said Kalanick, who in the last four years has steered Uber into 128 cities in 37 countries worldwide. "If you can make it economical for people to get out of their cars or sell their cars, and turn transportation into a service, it´s a pretty big deal."                                      

The latest LI business news in your inbox daily. Get the Biz Briefing newsletter!


Newsday.com now uses Facebook for our comment boards. Please read our guidelines and connect your Facebook account to comment.

You also may be interested in: