Uber claims that its ride-share service UberX is faster, cheaper and more convenient than taxis. At first glance the benefits seem obvious. Riders can sign up for the mobil app and instantly request a ride. You can see how far away the closest driver on your phone. Enter your credit card info once and no cash is ever exchanged. The service has now launched in Chattanooga.
Staff photo illustration by Laura W. McNuttUber raised $1.2 billion in its latest round of funding from venture capitalists, a sign investors were little fazed by the ride-hailing app's recent spate of bad publicity over privacy violations and its corporate culture.
The latest investment put a value on Uber at $40 billion.
That's bigger than the stock market values of companies such as American Airlines and Twitter, or the combined value of car-rental veterans Hertz and Avis Budget Group. At the same time, it is not a guarantee that Uber would receive the same valuation as a publicly traded company that it does as a venture-backed business.
San Francisco-based Uber triggered a wave of online criticism recently after a top executive suggested spending $1 million to dig up dirt on a journalist critical of the driver-on-demand company.
It was not the first time Uber has been called out for actions by its drivers or its corporate culture. It is investigating one of its employees for tracking another journalist's ride, which has raised fears that Uber is misusing customers' private location information.
In a blog post Thursday, CEO Travis Kalanick acknowledged the company's "significant growing pains."
"The events of the recent weeks have shown us that we also need to invest in internal growth and change," he wrote. "Acknowledging mistakes and learning from them are the first steps."
Downtown warehouse sells for $1.3 million
A warehouse building at 1220 King Street in downtown Chattanooga was sold last week for $1.3 million, according to a warranty deed filed with the Hamilton County Register of Deeds.
Luken Properties controlled the site, which was sold to a limited real estate partnership known as Rivermont King Street LLC. No immediate changes are planned for the property, which includes storage space for a number of businesses.
Mortgage rates fall to 3.89 percent
The average rate for a 30-year fixed mortgage fell this week to 3.89 percent, an 18-month low, from 3.97 percent last week, according to Freddie Mac's survey of lenders.
The average for a 15-year fixed-rate home loan fell to 3.1 percent from 3.17 percent. Start rates for adjustable mortgages also eased, Freddie Mac said Thursday in its widely watched weekly report.
Freddie Mac chief economist Frank Nothaft said "underwhelming" economic news was a factor in depressing rates. Home sales and job growth have been weaker than expected, he said.
Competition to make loans in the slow-sales environment appears to be forcing lenders to cut their profit margins.
Mortgage bankers reported an average profit of $897 per loan they originated in the third quarter of 2014, down from $954 in the second quarter, the Mortgage Bankers Association said Thursday in its quarterly report on industry performance.
Tax collections up in Georgia
Georgia's tax collections last month rose 4.3 pecent to nearly $1.46 billion, an increase of $60.5 million from a year ago, Gov. Nathan Deal said Thursday.
The November gains helped boost year-to-date revenue collections for state goverment in Georgia to $10.1 billion, up 5.4 percnet, or $523 million from the same period a year ago, before refunds and distributions to local governments.
New jobless claims fall to 297,000
The number of people seeking U.S. unemployment benefits slipped below 300,000 last week, after having spiked above that level in the prior week for the first time in nearly three months.
Weekly applications fell 17,000 to a seasonally adjusted 297,000, the Labor Department said Thursday. The four-week average, a less volatile measure, rose 4,750 to 299,000.
Applications are a proxy for layoffs. As fewer people seek unemployment benefits, it suggests that employers are holding onto more workers and potentially looking to bolster their hiring.
Applications have been under 300,000 for 11 of the past 12 weeks, an unusually low level that suggests employers are anticipating stronger economic growth. The four week average for jobless claims has plummeted 9 percent over the past 12 months.
Bank of England keeps rates steady
The Bank of England has decided to keep the main interest rate at a record low 0.5 percent as policy-makers look to sustain growth and nudge up inflation in Europe's third-largest economy.
Policymakers have been divided in the past about whether it is time to raise rates. But with inflation at 1.3 percent, well below the 2 percent target, pressure to do so remains muted.
Chris Williamson, chief economist at Markit, said Thursday the lack of price pressures gives the bank leeway to keep rates low, "therefore increasing the likelihood of the current growth spurt being sustained."
The decision comes amid predictions that the economy will slow. The Office of Budget Responsibility has predicted that U.K. growth at 2.4 percent in 2015, down from the 3 percent predicted this year.