Venture capital firm Benchmark, an early investor in Uber with a board seat, and Kalanick have reached an agreement over terms of the SoftBank investment, which could be worth up to $10 billion, according to two people familiar with the matter.
"We believe this agreement is a strong vote of confidence in Uber's long-term potential".
"Upon closing, it will help fuel our investments in technology and our continued expansion at home and overseas, while strengthening our corporate governance", Uber said of the deal in its statement.
The Japanese group, founded by billionaire Masayoshi Son, expressed an interest several months ago in investing around $1 billion in Uber for a stake of at least 14 percent. SoftBank is also expected to invest billions more buying up shares from existing shareholders at a discounted rate, depending on demand from sellers.
If the SoftBank deal goes through, it would function like a mini-IPO that helps tide Uber over until it actually goes public in 2019 as planned.
Softbank is a major Japanese conglomerate which has made a habit of investing in tech firms in Silicon Valley, with the likes of Slack and WeWork already on the receiving end of major investments from the company, which also bought United Kingdom chipmaker ARM Holdings.
Back in August, Benchmark, which holds about 13 percent of the company's stock sued former CEO Travis Kalanick in August 2017, accusing him of "gross mismanagement and misconduct" during his tenure at chief executive. When approached by a media house, Softbank declined to comment on the potential investment.
SoftBank, which owns shares in other ride-hailing companies outside the United States, will receive two seats on Uber's board once the offer is complete, according to the New York Times.
A deal would be positive for Uber, which is looking ahead to the future in the wake of recent repeated scandals, among them workplace sexual harassment allegations. Uber's board also adopted a new voting system that will further lessen Kalanick's influence. No worries. There are plenty of vehicle safety features that are available, affordably, for ALL cars, not just new ones.