Uber has set up a new $1 million company, Opus, to sell a carpool service in the US that lets people pay for rides and then split the price with others, an industry insider said.
The company is offering the $1,500 per month plan as part of its $1 billion fundraising push.
Uber plans to launch the new company next year, according to the source, who spoke on condition of anonymity because the company has not disclosed its business.
Opus is the latest in a series of private equity deals that Uber has struck to get its business off the ground, including a $1-billion round in April that valued the company at $17 billion, as well as a $2.5 billion buyout in November.
The ride-hailing company, which operates in more than 70 countries and is valued at more than $70 billion, has been battling for investors to support its expansion in the country.
In March, Uber began testing a service in Boston and other cities, which is currently in beta testing and is expected to roll out to more markets over the next several months.
Uber is seeking regulatory approval for the new Opus service, which will be launched in 2020.
The move to launch a new OpUS service, the insider said, comes amid a series.
The Opus team is looking at how to expand its service to other cities and cities with larger populations, including Austin, Seattle and Detroit, according the source.
Uber and its competitors have been looking to launch services in cities with a high volume of people and low traffic.
Uber’s expansion plans are part of an effort to drive up the number of drivers in cities to meet a demand that is growing for ride-sharing services.
Uber said last year that it has more than 4 million drivers worldwide.
The expansion of Uber’s service comes as the company faces increasing competition from Lyft, Uber’s parent company.
Uber, which has also become a rival to ride-share companies like Lyft, has raised $2 billion in new funding since its initial public offering in July 2017, according.
The ridesharing company has raised more than half a billion dollars from venture capital firms since its IPO in late 2015, including some of the largest such rounds of financing in history, according data compiled by MarketWatch.