Google Ventures pumped some major fuel into Uber this week (yes, this story is so ripe for some great headline and tagline puns). When the pump shut off, it totaled $257.79 million.

Uber has a vision “to build a technology company that changes transportation and logistics in urban centers around the world,” according to its blog press release after the announcement of Google Ventures funding into the car service this week, the largest investment ever made by Google Ventures.

This round is $258 million with proceeds to be used to expand into new markets, accelerate customer and driver acquisition, and fight off protectionist, anti-competitive efforts.

Google Ventures’s fill-up also earns Google Ventures a spot on Uber’s board. The seat will be filled by David Drummond, Google’s SVP of Corporate Development and Chief Legal Officer.  TPG Capital, one of the largest private equity investment firms in the world, also made a sizable contribution to Uber, earning its founding partner, David Bonderman, a seat on Uber’s board as well.

Why is this important?

  • Brains – These deals with both Google Ventures and TPG add a “one-two punch” of massive technology platform knowledge and executive experience. “[TPG’s] deep rolodex of operations executives and their regulatory know-how in highly regulated, ‘atoms’-based industries in the farthest corners of the globe is where [it] shines,” Uber CEO Travis Kalanick wrote in his Uber blog.
  • Brawn – It’s no secret that Uber has hit some hard regulatory walls and legal battles (see below) and it’s just getting started. But now they have the Google juggernaut behind it to “regulate the regulators” if you will.

Some examples of Uber’s regulation troubles across the United States:

  • New York City – Conflicts arose due to the exclusive contracts taxis have with payment processors.
  • Los Angeles – The city’s Department of Transportation issued cease-and-desist letters to Uber (and competitors Lyft and Sidecar).
  • Chicago – Uber was cited for a variety of ordinance violations, including allegedly charging riders a mandatory 20% gratuity.
  • Washington, D.C. – Local legislation considered that would eliminate single-car driver operations and the like, requiring luxury sedan services to do business with no fewer than 20 cars. Uber drivers often own their own vehicle and no more.
  • San Francisco – Uber’s faced cease-and-desist orders, taxi driver lawsuits, and much legal drama of its ban from picking up passengers at SFO.
  • Boston – Uber faces lawsuits from taxi companies alleging violations of state and federal laws.
Your future Uber driver?

Your future Uber driver?

Continue to “Uber on”? No doubt!

  • Uber International? – Absolutely! Uber now has a presence in 41 cities in 16 countries, most recently expanding to China.  Uber may find some of its most difficult regulation challenges yet now that @Uber_China rolled out on August 22, 2013. (Uber arrives in China after launching test service in Shanghai).
  • Uber Delivery? – Likely. Remember that quote above? …to build a technology company that changes transportation and logistics in urban centers around the world. Uber has used clever marketing stunts for product deliveries, such as BBQ at SxSW and ice cream trucks to your door, but many have speculated that Uber network could be used for bringing the goods to the people, instead of vice versa. (Is Airbnb The Next eBay, Uber The Next Amazon?)
  • Driverless Taxis? – Possible. You’ve probably heard of Google working on technology for driverless vehicles and being in talks with auto manufacturers for actual development. So, a partnership with Uber leads to an additional question — Can I save on that 20% tip if I don’t have to have a driver? (Google Designing Its Own Self-Driving Car, Considers ‘Robo Taxi’

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