Uber Sells 500M-Dollar Stake in Freight Business
SAN FRANCISCO, CA - The ride-hailing service turned foodservice operator Uber has undergone a major shift in business strategies in the past few years, especially in the food delivery sector. To maintain its competitive edge, Uber is adapting to the changing tides due to the effects of COVID-19 and has announced the sale of Uber Freight to maintain its hold in the foodservice and grocery landscape.
“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, 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.
How will Uber continue to be a driving force in the foodservice and grocery delivery industry now that it has more revenue on hand? ANUK will keep a pulse on the newswire.