In the last year and a half or so, Uber has raisedmorethan$5 billion. It’s now on the lookout for another $2 billion, which it hopes to raise by selling junk bonds. It’s already got $6 billion just sitting in the bank, enough to cover the $2 billion a year it’s losing in China and India for the next three. So why does it want that money? Simple: So that you (and Didi and Chuxing and Lyft and Gett and Halo and Juno and whatever else) can’t have it.
Every time Uber raises another $1 billion, venture capital investors and others may find it less attractive to back one of Uber’s many rivals…. In other words, Uber’s fund-raising efforts have seemingly become part of the contest: It’s not just a rivalry over customers and drivers; it’s a war of attrition, a mad scramble to starve the competition of cash….
Uber’s fund-raising arms race comes against the backdrop of falling valuations for many Silicon Valley unicorns — private companies worth $1 billion or more. So there’s clearly a rush to take the money while it’s still available.
Why Uber Keeps Raising Billions [DealBook]