- General
- October 2, 2020
- 4 minutes read
Uber Freight Lands $500 Million Round
Lior Ron, Head, Uber Freight. Photo credit: Picture Alliance for DLD (free press image), licensed under Creative Commons Uber Freight,…
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| Lior Ron, Head, Uber Freight.
Photo credit: Picture Alliance for DLD (free press image), licensed under Creative Commons
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Uber Freight, the freight logistics division of publicly-traded ride-hailing giant Uber, has bagged $500 million in outside funding from an investor group led by Greenbriar Equity Group, an investment firm based in New York. The outside investment bestows a $3.3 billion post-money valuation on Uber Freight, which Uber still continues to hold majority ownership in. Uber says it’ll use the new funding to scale its freight division’s operations and accelerate product development.
Uber Freight was launched only three years ago and has grown rapidly since that time. In the second quarter of this year, revenue from the division came at $211 million, up 27% year-over-year. In the entirety of 2019, it brought in over $700 million in revenues and is one of Uber’s fastest-growing businesses outside ride-hailing. In the second quarter of this year, at a time when Uber’s ride-hailing revenue slumped by 67%, Freight grew by double-digits in percentage along with Uber’s food delivery business, being quite a shield for the company in current tough times.
The $500 million investment is the first outside funding Uber Freight has secured, with the entire transaction expected to be completed in this month of October. The investment notably comes on the heels of Uber selling its European freight operations to Sennder, a German freight forwarding upstart.
