Uber eyes IPO after accepting massive Softbank investment
Uber's board of directors approved a massive investment Japanese telecommunications group Softbank on Tuesday evening along with a number of changes to the board itself and a commitment to launch an initial public offer by 2019.
The Californian firm said the investment, reportedly between $1bn and $1.25bn, could be finalised in the coming weeks and would come just four months after Softbank had agreed to acquire Southeast Asian ride-hailing application Grab.
"The board voted unanimously to move forward with the proposed investment by Softbank and with governance changes that would strengthen its independence and ensure equality among all shareholders," Uber said on Tuesday evening.
"SoftBank's interest is an incredible vote of confidence in Uber's business and long-term potential, and we look forward to finalizing the investment in the coming weeks," the statement added.
Softbank, which bought up UK microchip specialist ARM Holdings for £28bn last year, will have as much as a 17% stake in Uber, which the world's most valuable privately held tech startup.
As part of the investment, the company will commit to launching an IPO by 201p, all shares in Uber will have one vote as 'supervoting shares' owned by founders are anulled, the board of directors will be expanded to 17 members from the current 11 and the choice of any new CEO must be agreed by two thirds of the board vote until after the IPO.
LONDON UPDATE
Uber's new chief executive Dara Khosrowshahi met with Mike Brown, transport commissioner at Transport for London, on Tuesday where he assured him that Uber was "determined to make things right" after regulator decided not to renew the firm's London licence in September, deeming it "unfit" to run a taxi service.
Shortly after the meeting between the two, Uber announced several changes to its top-level management.
A TfL Spokesperson said: "Today's constructive meeting centred on what needs to happen to ensure a thriving taxi and private hire market in London where everyone operates to the same high standards. Further steps in this process will take place over the coming weeks."