Uber Saudi Arabia Investment
Uber Still On Top| Uber Saudi Arabia Investment
Uber is on top of the on-demand, ride-sharing game, and will probably stay there for a long time too.
Despite losing market ground in China (Uber China was bought off by local competitor Didi Chuxing) and a reported revenue loss of $1.2 billion in the first half of 2016, Uber is still the world’s number one online transportation company.
The momentum of its global success is unstoppable at the moment- with the company continuing to thunder on past every other competitor, brushing off these setbacks which other lesser companies would’ve buckled under.
Uber Saudi Arabia Deal
Proof that investor confidence in this barely seven-year-old startup is at an all time high is the fact that Saudi Arabia- a nation not known for any particular involvement in major investment ventures- recently infused a whopping $3.5 billion into Uber.
Uber billion funding deal was secured last June by Uber Technologies board member David Plouffe after months of back-and-forth discussions.
The money came directly from Saudi Arabia’s Public Investment Fund. This action is also notable for being the largest ever that the Fund has invested in into any single business venture.
As part of its recent push into Asia (Uber first gained traction in cities in the US and Europe, only expanding into Asian cities in late 2014 and early 2015), this investment also gives Uber great leverage into securing the ride-sharing market in the Middle East.
It’s a win-win situation for both parties: Uber gains entry (and official governmental support) into Saudi Arabia, and Saudi Arabia gets a key international company in their backyard, an essential ingredient for its transformation into a global nation that is less dependent on the oil industry.
Saudi Arabia Women Driving Rights Banned – But Thanks To Uber…
Also, the deal gives a specific demographic in Saudia Arabia a major boon– women, who were traditionally not allowed to drive, are now freely mobile through the use of Uber.
This is the kind of positive social impact that few private companies in the world has ever achieved. Saudi women used to be reliant on male relatives, private taxis, and paid services to get around.
The costs for these paid transport services are very prohibitive, especially during rush hour, and the wait times can extend to thirty minutes to an hour.
But with Uber, women in Saudi Arabia now have an easier time getting to where they need to go.
Princess Reema bint Bandar Al Saud, a health and entrepreneurship advocate, hosted a breast cancer awareness event called 10KSA of which Uber was a major co-sponsor.Not to mention that the Royal Highness serves on Uber’s policy advisor board.
The on-demand transportation app was called on by the Princess to ensure that 2,000 Uber cars are to be made available on that day, so that as many women as possible are able to make it to the event.
As of this writing, women make up about seventy to ninety percent of Uber’s customer base in Saudi Arabia