Uber clears way for Softbank investment

Uber directors has approved a huge investment from Japan’s Softbank in late Tuesday, and a series of changes to its board.

The firm said the investment, which reports suggest may hit $1.3 billion (£980), could be finalized in the coming weeks.

The council of the ride-sharing company has also approved a plan to hold an initial public offering in 2019.

The moves signal a new unity among the previously divided council as Uber seeks to recover from a series of scandals.

“The board voted unanimously to go ahead with the proposed investment by Softbank and governance changes that would strengthen its independence and to ensure equal treatment between all shareholders,” Uber said in a statement late Tuesday.

The size of the investment is expected to be between $ 1 billion (£750m) and $1.25 billion (£940 million), various reports, he said, quoting anonymous sources.

Last month, Softbank, a telecommunications and technology giant, said that it was considering an investment in Uber.

It has already shown an appetite for the ride-sharing service, the support of China Didi Chuxing and south-east Asian taxi-hailing app to Grab.

“SoftBank’s interest is an incredible vote of confidence in Uber’s business and the long-term potential, and we hope to finalize the investment in the next few weeks,” Uber said.Board changes

Governance changes approved by the company board hinge on the Softbank investment is in progress.

The reforms, which include changes to the voting rights and an expansion of Uber’s board of directors, are seen as drawing power away from the former ceo, Travis Kalanick, remains on the table.

Mr Kalanick has resigned in June following pressure from shareholders, and sexual harassment claims and other scandals.

In the month of August, has been replaced by Dara Khosrowshahi, who must face a series of challenges in improving both the bottom line and company’s tarnished image, as well as battles with regulators.

Among these is the recent loss of Uber license in London.

At the beginning of this week Mr. Khosrowshahi met in London the commissioner for transport, after the regulator considered that the company “unsuitable” to run a taxi service in town and has decided not to renew its license.