Microsoft investing $100 million in Uber
Microsoft agreed to invest around $100 million in Uber, according to a person close to the matter, making it apparent that the two companies are working on strengthening their alliance.
Last month Uber acquired part of Bing’s mapping unit from Microsoft. As a result, around 100 workers from were transferred to Uber to be involved in its mapping team.
Uber Technologies Inc. was recently valued at $50 billion, which is four times the value of Avis and Hertz together – at the beginning of year Uber was valued at $40 billion.
According to Bloomberg, Kristin Carvell, a spokeswoman for Uber, said:
“We filed to authorize this new funding more than two months ago.”
“The filing is available to the public. We aren’t commenting on additional speculation.”
Why would Microsoft invest in Uber?
The partnership gives Microsoft a stake in one of the fastest growing tech companies and gives Uber a powerful ally against Google.
In the past, Microsoft and Uber collaborated in Microsoft’s Cortana voice-controlled assistant so that users can ask for Uber service based on their calendar program.
The San Francisco based company has a presence in 58 countries and almost 300 cities and it recently announced an ambitious plan to invest in India using cash it raised from financing earlier this year.
Microsoft sees the potential in the company, which many hail as the future of transport, and simply wants a stake in it.