Uber’s investments in ventures such as self-driving technologies and aerial vehicles have come under pressure as the company reported a loss of $1.8bn during these unprecedented times.

Uber Freight is an app launched in 2017 acting as a broker connecting large companies to a network of truck drivers. It enables trucking company drivers to book loads seamlessly as they would book an Uber ride.

Greenbriar Equity Group, a New York based private equity firm, led a group of investors committing $500m to Uber Freight, making it the largest investment in North American third-party Freight history. The new investors are coming in through what Uber Freight says is a Series A preferred stock financing. The preferred equity investment valued the division at $3.3bn, including the new capital.

Uber retains majority ownership of the freight business and will use the funds to continue to scale its logistics platform and accelerate product innovation to equip truckers with technology to power their supply chains.

The move is an attempt by Uber to recover from the pandemic’s effects on its business which reported a 35% fall in gross bookings in the last quarter compared to the year before.

Lior Ron, head of Uber Freight, said in a statement “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”.

There have been other occasions where Uber has sought outside investors for its ventures. Last year $1bn had been invested by Toyota, SoftBank’s Vision Fund and the Japanese car parts supplier Denso in Uber’s self-driving technologies unit, valuing it at $7.25bn.

Audley Chaucer Solicitors can advise its clients in all aspects of raising capital either through traditional channels or through more innovative and creative paths using specialised lending platforms. Please call John Szepietowski at Audley Chaucer for an initial discussion.

Syeda Anjum

Related News