Tag: 500M

02
Oct
2020
Posted in technology

Convoy rival Uber Freight raises $500M, valuing trucking logistics business at $3.3B

(Uber Freight Photo)

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.

Convoy hires former Expedia CEO as president and COO as digital freight startup tops 1k employees

“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 complex marketplace.”

The business rivals Seattle startup Convoy, which also operates a digital marketplace for shippers and carriers. Founded by former Amazon leaders, Convoy raised $400 million at a $2.7 billion valuation in November and recently hired former Expedia Group CEO Mark Okerstrom as its new president.

Convoy has raised $668 million over its lifetime from investors including Microsoft co-founder Bill Gates; Amazon founder Jeff Bezos; Salesforce CEO Marc Benioff; Code.org founders Hadi and Ali Partovi; former Starbucks president Howard Behar; U2’s Bono and The Edge; among others.

Uber Freight reported $211 million in adjusted net revenue for Uber’s most recent quarter, or 11% of the company’s total revenue. That’s up from $167 million a year ago. It reported a $49 million loss for the quarter, down from $52 million last year.

The investment in Uber Freight comes as Uber continues to navigate through the pandemic, which has crushed its

02
Oct
2020
Posted in technology

Uber Freight Receives $500M From Greenbriar Investment

Uber Technologies  (UBER) – Get Report said it received a $500 million preferred-stock investment in Uber Freight from a group led by Greenbriar Equity, a deal that values the unit at $3.3 billion. 

Uber Freight was launched in 2017 as the shipping arm of Uber Technologies, the parent of the ride-hailing and food-delivery companies. 

The freight service enables trucking companies and drivers to book loads just as they would book Uber rides, a company statement says. 

Greenbriar is the Rye, N.Y., private-equity firm focused on logistics, transport, manufacturing and more.

Uber Freight said it planned to use the funds to build out its logistics platform and speed new products to market.

As part of the investment, Greenbriar Managing Partners Michael Weiss and Jill Raker will join the Uber Freight board. Uber will retain majority control of the freight unit.

Greenbriar is “a partner with deep expertise and a shared passion for simplifying logistics,” said Uber Freight head Lior Ron.

The transaction is expected to close this month, subject to customary conditions. The statement didn’t specify them.  

Greenbriar’s people have “decades-long involvement in the logistics sector,” Weiss said in the statement. 

Ron said Uber Freight’s technology has “[transformed] dated and analog processes to ensure that both shippers and carriers are equipped to succeed in a rapidly changing industry.”  

Uber Freight’s funding deal with Greenbriar follows other recent moves the company has made, including forming new integration partnerships with large cloud-service providers, and expanding its enterprise-software offering with the launch of Uber Freight Enterprise and Uber Freight Link. 

On a day when the broad market is indicated lower, Uber shares at last check were off 3% at $36.04.