Uber Freight, the logistics arm of Uber, has raised $500 million in new funds. The Series A funding, from an investor group led by New York-based Greenbriar Equity Group, values the unit at $3.3 billion.
Uber Technologies Inc. will maintain majority ownership in Uber Freight and will use the funds to continue to scale its logistics platform and accelerate product innovation to ‘equip shippers with technology to power their supply chains’.
Uber Freight was launched in 2017. The company has subsequently built one of the world’s largest digitally enabled carrier networks.
Lior Ron, Head of Uber Freight, says: “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.”
He adds: “We are thrilled to be moving into the next chapter with Greenbriar by our side as a partner with deep expertise and a shared passion for simplifying logistics. We will continue to leverage Uber’s leading marketplace technology, global reach, and cross-platform capabilities to accelerate our growth and continue to lead the industry forward.”
Michael Weiss, a Managing Partner of Greenbriar, comments: “Uber Freight has created an innovative and effective approach to logistics technology that we believe is highly scalable in the coming years. In particular, we believe that carriers and shippers will be increasingly attracted to the convenience and simplicity that Uber Freight offers in a complex marketplace. We are eager to share the extensive knowledge and expertise we have built through our decades-long involvement in the logistics sector.”
The initial closing of the transaction is expected to occur in October 2020, subject to customary closing conditions.