Uber is dead-set on fortifying its presence as a foodservice operator, with multiple aggressive growth initiatives taking root recently. The company is now pivoting its operations to better serve this slice of the market, announcing that it is selling its Uber Freight division.
“We are tremendously proud of what we have accomplished in a few short years. 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,” Uber Freight CEO Lior Ron said in a statement.
An investor group led by New York-based investment firm Greenbriar Equity Group has committed $500 million in a Series A preferred stock financing for Uber Freight. The deal values the unit at $3.3 billion on a post-money basis. Greenbriar managing partners Michael Weiss and Jill Raker will join the Uber Freight Board. Uber didn’t name the other investors involved.
When Uber first launched into freight transportation in 2016, as reported by our sister site AndNowUKnow, it seemed that the supply chain would integrate new cutting-edge advancements such as self-driving technology. However, according to TechCrunch, the COVID-19 pandemic has made the platform rethink its business strategy, such as focusing more on its recent Postmates acquisition.
As stated by the news source, Uber said it will maintain majority ownership in Uber Freight and will use the funds to continue to scale its logistics platform, which helps truck drivers connect with shipping companies.
What will be Uber’s next move? We at Deli Market News will keep you in the loop.
