Published on : Oct 04, 2017
After a fractured mandate in the Board of Uber Technologies Inc., its members have finally decided to unanimously vote to go ahead with the investment SoftBank Group Corp., a major Japanese technology investor. The multi-billion dollar deal isn’t finalized yet and hence the magnitude of investment is open to speculation. Market analysts feel that having Ursula Burns and John Thain as directors in the Board helped the company to arrive at the decision.
Uber opined that bagging the investment deal from a Japanese technology major reiterates its robust business model and the step will help the hail-riding company expand its potential in the foreseeable future. The board members also resolved to go public by the end of 2019.
New Governance Framework to Help Uber Become Renowned Public Company
A decision was also reached by the Board to implement measures on a new governance framework that will help Uber to become a globally renowned public company. Of late, SoftBank invested large sums in ride-hailing companies in South East Asia, notably in Ola Cabs, a transport company based in India. SoftBank believes that going forward with the investment, together with its decision to go public, will help it gain an edge over rivals.
The Board also decided to increase its seats from 11 to 17, with SoftBank getting two of the seats. The ride-hailing company has been going through turbulent times in recent years and this change of its Board composition and the formation of a new governance model by the Board members will help it get through the rough weather.