Since the announcement of the Saudi Vision 2030, the authorities are working overtime to achieve the goal of economic diversification. The $3.5 billion purchase of a stake in US ride-hailing firm Uber is part of Saudi efforts to do away with heavy dependence on oil.
The investment is not only the biggest the company has received from a single source to date, but it is also one of the largest in any privately held Silicon Valley startup.
Uber, the company that revolutionized the way people transport around cities all over the world, and the company that daunted by fights to justify its existence and license its services in many courts of law, could be one of the sources that could channel funds into our economy.
Uber is an American company that was founded about seven years ago in March of 2009. It literally invented the business model of customers requesting a ride through an app on their smartphones. That request would then be routed to several drivers using their own cars and collaborating with the company to transfer customers. Uber now is available in mover than 66 countries, 449 cities around the globe.
Services like Uber have helped transform local transportation scene.
On top of those reaping the benefits of the service are women who found in such services a more convenient and easier mode of transportation. Most estimates state that around 80 percent of Uber’s users in the country are women.
Now for Saudi Arabia, it is a smart move to invest in this growing company. However, the decision to invest in it does not only serve the purpose of finding other channels to fuel the economy but it could help us achieve various other objectives. For instance, providing easier alternatives for women to commute in the country could serve the goal of increasing the number of women in the work force. And in a way, it is an encouraging gesture for entrepreneurs with novel ideas, as it shows that the sovereign fund of the country is not shy of investing in businesses that it believes would succeed in the long run.
The investment is not only the biggest the company has received from a single source to date, but it is also one of the largest in any privately held Silicon Valley startup.
Uber, the company that revolutionized the way people transport around cities all over the world, and the company that daunted by fights to justify its existence and license its services in many courts of law, could be one of the sources that could channel funds into our economy.
Uber is an American company that was founded about seven years ago in March of 2009. It literally invented the business model of customers requesting a ride through an app on their smartphones. That request would then be routed to several drivers using their own cars and collaborating with the company to transfer customers. Uber now is available in mover than 66 countries, 449 cities around the globe.
Services like Uber have helped transform local transportation scene.
On top of those reaping the benefits of the service are women who found in such services a more convenient and easier mode of transportation. Most estimates state that around 80 percent of Uber’s users in the country are women.
Now for Saudi Arabia, it is a smart move to invest in this growing company. However, the decision to invest in it does not only serve the purpose of finding other channels to fuel the economy but it could help us achieve various other objectives. For instance, providing easier alternatives for women to commute in the country could serve the goal of increasing the number of women in the work force. And in a way, it is an encouraging gesture for entrepreneurs with novel ideas, as it shows that the sovereign fund of the country is not shy of investing in businesses that it believes would succeed in the long run.
