Whenever automated transportation becomes feasible, which is on the order of 5-10 years, a good chunk of a multi-trillion dollar market will go to the few players ready to capture it. At this point, Uber is arguably the most promising bet: tons of data, name recognition, long-term vision, talent, and on-point execution. Not to say they can't miss the mark still, but the market size for transportation of people and goods is gigantic, and Uber is dead set on basically being the One to take it all. I can see why it'd be an appealing investment.

I've been a loyal Uber user from their second month of existence but if Google offered me the same service for 10% less I would switch. I think this turns into a profitable but lower margin business than people think.

I'm not sure if this is a bubble that's popping or a valuation steeped in reality because of the value in this industry. If there is this much value in disrupting transportation it can't simply be to shuttle people around instead of using cabs. I'm starting to wonder what kind of business Uber needs to become for this kind of valuation to be justified.

How about a fleet of fully automatic-driving cars? That can deliver goods as well as people? Uber is aiming to replace the automobile in your garage. Currently, to establish themselves, they need to displace taxi cabs for those that already don't drive cars. But their intentions have been clear: a fully automated driving fleet, combined with same-day delivery of packages. Their aiming to disrupt not just the taxi industry, but also the automobile industry and the package delivery industry. The package delivery industry might be leveraged in the future to disrupt the online shopping industry.

Do I think they'll succeed? Honestly, no. But I do understand why all this money is being poured into the variety of taxi cab alternatives out there. This is a lot bigger than just the taxi cab industry.

>Just three months after raising an enormous sum of money from investors, Uber is at it again.

My question is if they raised money 3 months ago, what happen between that time and now for them to raise 1 billion?

Perhaps Uber believes they seen the end of cheap money coming soon and they want to build a defensive bank to get them through the lean times. Raising $1B at a $70B valuation is only giving up 1.4% equity so why wouldn't you be raising if you can?

International legal council, lawsuits, fines, and the free fares offered in some areas probably eat into the runway quite quickly.