Last April 26, 2019, PayPal and Uber agreed to renew their partnership, one that has been in place since 2013. Following this decision, the payments giant has decided to invest $500 million in the ride-sharing company.
The half a billion-dollar investment by the payments giant comes out around $47 per share, thereby providing the ridesharing company to get a valuation of $78.8 billion as of writing. However, various news outlets state that Uber is eyeing for an $80 to $90 billion valuation range.
Forbes notes that by selling around 180 million shares ahead of its public debut, Uber is making big plans to raise around $9 billion in funding. The initial prices that were available for the public ranges from $44 to $50 per share.
In the same way, Reuters states that Uber’s valuation for the year comes short of its initial target of $120 billion, with its range currently close to last year’s $76 billion.
New Plans in Place
The $500 million investment by PayPal plans to take the venture to new heights. Part of the extended partnership includes the payments mogul looking into the existing online payment system of Uber. According to CNET, doing so allows PayPal to improve and develop the digital wallet of the ride-hailing service.
Tech Crunch reports that Dan Schulman, chief executive officer of PayPal, is positive that the two corporations would work hand in hand in cultivating a more effective payments system in place, allowing rides to become more smooth and efficient as possible.
CNET further supports this claim, citing Schulman saying that this undertaking would help “enable global commerce by connecting the world’s leading marketplaces and payments networks.”
Through this relationship, both parties hope to launch the ride-hailing business into a super app status. This includes services covering transportation, payments, and shopping reports Reuters.