PayPal agrees to invest $500 M in Uber, says it will help develop taxi operator’s digital wallet
Global online payments operator, PayPal, has gotten into an agreement to invest $500 million in cab aggregator provider, Uber. Confirming the development, PayPal’s President and CEO, Dan Schulman, took to LinkedIn, stating the payments behemoth has reached an agreement to extend the global partnership, and help in the development of Uber’s digital wallet.
The deal has taken place through a private placement of shares.
Speaking on his LinkedIn post, Dan Schulman, said,
“Since 2013, we have supported Uber’s payments capabilities as their lead payment processing partner in the US and Australia. Today, I am thrilled to announce that we have reached an agreement to extend our global partnership with Uber and intend to explore future commercial payment collaborations, including the development of Uber’s digital wallet. Additionally, we have agreed to invest $500 million in a private placement.”
Dan also added that this is another significant milestone in PayPal’s journey to be a platform partner of choice, helping to enable global commerce by connecting the world’s leading marketplaces and payment networks.
This is the second pre-IPO investment by Uber this month.
Earlier this month, Uber announced an investment of $1 billion from Toyota Motor Corp. (Toyota), DENSO Corporation (DENSO) and the SoftBank Vision Fund (SVF). The investment was for Uber’s newly formed ATG corporate entity, which aims to accelerate the development and commercialisation of automated ridesharing services.
Under the terms, Toyota and DENSO agreed to together invest $667 million, while SVF will invest $333 million, valuing the new Uber ATG entity at $7.25 billion on a post-money basis.
This week, reports emerged that Uber Technologies was seeking to raise $9 billion in an initial public offering (IPO), which will provide the taxi aggregator a market valuation of $84 billion.
According to the regulatory filings, the San Francisco-based company will reportedly offer 180 million shares at $44 to $50 each.