Sci-Tech

Uber Freight closes $ 500 million fundraiser

While the flagship of VTC operations has been hard hit by global containment (losses totaled $ 2.9 billion in May and 6,000 layoffs), Uber continues to diversify its operations and adapt to a booming market. Mutation. Particularly in view of the legal dispute over the statutes of its deliverers, the historical passenger transport is obviously in a complicated phase.

A massive investment in the logistics freight market

Therefore, the company decided to invest heavily in goods transport. On Friday, October 2, Uber announced that it had completed a round of funding of up to $ 500 million for Uber Freight, the freight transportation division established in 2017 after a trial period in 2016. In a press release released on the occasion, the company said the Uber Freight division is now valued at $ 3.3 billion. The fundraising was led by the mutual fund Greenbriar Equity Group, whose two managers Michael Weiss and Jill Raker will join the board of directors of Uber Freight.

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“We are very proud of what we have achieved in just a few years. We have been the technology leader in technology, transforming legacy and analog processes to equip shippers and carriers to succeed in a rapidly changing industry, “said Lior Ron, CEO of Uber Freight, adding that Greenbriar is a partner, “With in-depth expertise and a shared passion for simplifying logistics”.

Uber’s cargo division was legally separated from its parent company in August 2018. A decision that gave her more leeway in her value proposition. Uber Freight is a platform for connecting road carriers and companies who want to ship their goods. Just as it disrupted the passenger transportation market, Uber aims to fill a void in that freight logistics market. For this purpose, a special application is used with functions intended to simplify the daily life of freight forwarders, with special attention to the filter and search functions. Searches can be sorted in the app according to the weight and packaging of the goods. The planning functions have also been optimized so that the drivers have a precise overview of their calendar.

In recent months, Uber Freight has also partnered with transportation management software (TMS) providers including SAP, Blue Yonder, BluJay, MercuryGate and Oracle.

Uber’s cargo division has had a good period of revenue growth (although not yet turned into profit). Uber Freight generated revenue of $ 211 million in the second quarter of 2020, a 27% increase over the same period last year. The freight department is headquartered in Chicago. This is part of the parent company’s larger plan to invest more than $ 200 million a year in the region, including hiring hundreds of workers. Last September, Uber announced it would hire 2,000 new employees in the region over the next three years. Most of them are assigned to Uber Freight.

Uber continues to restructure its business

First launched as a test in Texas, the service quickly expanded to the entire United States. Uber Freight then crossed the country’s borders and settled in its neighbors and the juicy Canadian freight market, valued at $ 68 billion. In March 2019 she tried to establish herself on the other side of the Atlantic (with the Netherlands as the first anchor). The European playground had an even larger share of sales with a market value of $ 400 billion. However, the peculiarities of the European market and the heterogeneity of the legislation will have overcome the will to settle on the old continent. On September 16, 2020, Uber Freight ceded its European operations to the continent’s leading freight company, Sennder.

It’s been a little over three years since Dara Khosrowshahi took over the reins of Uber, and at his head the company continues to change. Starting from simple passenger traffic, Uber has since developed and diversified its activities. We knew about Uber Eats, the food delivery service. Uber has decided to tackle the wave of growth in this segment since the pandemic began and acquire Postmates for $ 2.65 billion. Uber Health was founded in 2018 to give healthcare facilities the ability to book travel for patients with an appointment. A service that expanded to include drug delivery in the cities of Seattle and Dallas in August 2020. There is no doubt that other initiatives and restructurings will continue to make headlines in the months ahead.

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