With SoftBank Deal, Uber Eyes Revival

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Latest Startup News- Entrepreneurs of India

It’s true that the American online private hire company Uber had a turbulent time.The company recently caught headlines for wrong reasons. Key members including the CEO and founder Travis Kalanick resigned their post, putting its reputation at stake. But the new billion-dollar deal with SoftBank, which is likely to happen next week, is setting stage for Uber’s revival. The Uber board members gave nod to the deal with SoftBank.

SoftBank will use its Vision Fund of $ 93 billion to acquire 14-20% shares of Uber. The association with SoftBank will help Uber meet their objective- to go public in 2020. However, with much competition from the industry the company will have to plan new strategies to acquire patronage.

According to Uber board member Arianna Huffington, the multi-billion dollar deal with SoftBank will be closed by the coming week. Moreover, she remained hopeful of the new team of the company. After Kalanick’s resignation, Dara Khosrowshahi was recently appointed as the new CEO of Uber. Huffington maintained an optimistic approach about his strategies and plans to take the company forward.

“He is unflappable”, she said. In her opinion, Khosrowshahi has got a new plan to regain Uber’s strength in Indian market and his prime focus is on getting people’s trust on the company. In India too, Uber has been getting lukewarm response with the entry of new competitors.

The partnership with SoftBank will surely rebuild the image of Uber if everything turns out well, said Huffington. SoftBank’s investment in Uber will be reflected in the latter’s global performance in coming days. The fund would mostly be used to expand Uber’s business in existing markets.

 

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