---
title: "Uber Looking to Raise $2 Billion Through Risky Loans"
description: "Apparently the ride-sharing company's existing billions aren't enough."
date: "2016-06-15"
modified: "2016-06-15"
authors:
  - name: "Will Sabel Courtney"
    job_title: "Contributor"
    link: "https://www.thedrive.com/authors/will-sabel-courtney"
url: "https://www.thedrive.com/news/3994/uber-looking-to-raise-2-billion-through-risky-loans"
categories:
  - "News"
tags:
  - "Uber"
---

# Uber Looking to Raise $2 Billion Through Risky Loans

![](<https://www.thedrive.com/wp-content/uploads/images-by-url-td/content/archive-images/061516-uber-cash-hero.jpg>)
*\<em\>www.thedrive.com</em>*

Uber is looking to drum up as much as $2 billion in the risky realm of so-called "leveraged loans" in its efforts to continue expanding market share around the world, *The Wall Street Journal* reported on June 14.

[According to *WSJ*](<https://www.wsj.com/articles/uber-to-raise-up-to-2-billion-in-leveraged-loan-market-1465925931>), Uber has called upon some of the biggest and most infamous names in the financial world—Morgan Stanley, Goldman Sachs, Citigroup, and Barclays—to sell between $1 billion and $2 billion in debt to investors in the form of leveraged loans, a private form of junk bonds issued by companies that have below-investment-grade credit ratings to mutual funds, hedge funds, and insurance companies. The new loans would bring Uber's total cash on hand to roughly $15 billion.

The ride-sharing company has been hoovering up cash in the last few months in an effort to continue its international expansion. [Uber recently accepted a $3.5 billion investment from Saudi Arabia](<https://www.thedrive.com/news/3786/saudi-arabia-just-invested-3-5-billion-in-uber>), which in turn came shortly after [a deal for an unknown amount of money with Toyota](<https://www.thedrive.com/news/3655/toyota-is-making-a-secretive-investment-in-uber>). The company is currently valued at around $68 billion.

[CEO Travis Kalanick reportedly told an audience in Berlin](<https://twitter.com/andyjayhawk/status/740589409880264709>) that while the company is turning a profit in the developed world, it was "massively unprofitable" in the developing markets it is currently expanding into, such as Africa and China. Last year, [the CEO claimed Uber was losing around $1 billion a year in China](<https://www.thedrive.com/news/2294/ubers-losing-1-billion-a-year-in-china>) alone, where it faces strong competition from [the likes of Apple-backed Didi Kuadi](<https://www.thedrive.com/news/3464/apple-just-bought-1-billion-of-chinas-uber-competitor>). The company spends heavily in developing markets to grow market share, by subsidizing rides and offering cash incentives to drivers.

And of course, [Uber still probably wouldn't mind bleeding Lyft to death](<https://www.thedrive.com/news/1845/is-uber-trying-to-bleed-lyft-to-death>), either.

## Author
Will is the former managing editor of *RIDES Magazine* and the former online editor for *0-60 Magazine*. He has worked for *Time Out New York* and *Rolling Stone*, and was the creator of *College Cars Online*, the first automotive blog specifically targeted at college students and young professionals.

### Author social links  
[Instagram](<https://instagram.com/willsabelcourtney>)  
[Twitter](<https://twitter.com/willscourtney>)