Uber on Friday said an investment group led by Greenbriar Equity is pumping $500 million into its trucking unit.
The preferred stock financing values Uber Freight at $3.3 billion, and comes as the San Francisco-based company’s core ride-sharing service is stalled due to the pandemic.
Uber Freight matches truckers to shippers in much the way the ride service connects passengers with drivers in the so-called on-demand economy.
While Uber’s ride service has suffered due to people hunkering down or being reluctant to get into cars with strangers due to Covid-19 risk, the freight unit, which launched in 2017, has grown.
“We have led the industry with technology, transforming dated and analog processes to ensure that both shippers and carriers are equipped to succeed in a rapidly changing industry,” said Uber Freight chief Lior Ron.
Uber said it will retain a majority stake in Freight, using the money to expand the
Uber Freight, the trucking logistics arm of Uber, today announced a $500 million investment led by Greenbriar that values the unit at $3.3 billion.
Uber Freight helps match carriers with shipper’s loads, using technology to expedite and automate a traditionally manual process that involves email and phone calls. Since launching in 2017, it has nearly 65,000 carriers in its network and works with shippers including AB Inbev, Nestle, LG, Niagara Bottling, Heineken, Land O’Lakes, and more.
“Uber Freight has created an innovative and effective approach to logistics technology that we believe is highly scalable in the coming years,” Michael Weiss, managing partner of Greenbriar, said in a statement. “In particular, we believe that carriers and shippers will be increasingly attracted to the convenience and simplicity that Uber Freight offers in a