fbpx
Cyber-wellness Means Cyber-awareRead more Addressing maternal mental healthcare in AfricaRead more Qatar v. Ecuador to kick off FIFA World Cup 2022™ on 20 NovemberRead more Webb Fontaine Announces Launch of Niger National Single Window (NNSW) to Bolster TradeRead more Ethiopia: Loan from United Nations Fund Allows Food and Agriculture Organization (FAO) to Scale Up Fertilizers for Farmers in TigrayRead more How Choosing the Right Printer Helps Small Businesses and Content Creators to Save Time, Maximise Productivity and Achieve GrowthRead more Eritrea: World Breastfeeding WeekRead more Eritrean community festival in Scandinavian countriesRead more IOM: Uptick in Migrants Heading Home as World Rebounds from COVID-19Read more Network International & Infobip to offer WhatsApp for Business Banking Services to Financial Institution Clients across AfricaRead more

Investors load $500 mn into Uber’s trucking business

Print Friendly and PDF

Oct 03, 2020 - 07:21 AM

SAN FRANCISCO — Uber on Friday said an investment group led by Greenbriar Equity is pumping $500 million into its trucking unit.

The preferred stock financing values Uber Freight at $3.3 billion, and comes as the San Francisco-based company’s core ride-sharing service is stalled due to the pandemic.

Uber Freight matches truckers to shippers in much the way the ride service connects passengers with drivers in the so-called on-demand economy.

While Uber’s ride service has suffered due to people hunkering down or being reluctant to get into cars with strangers due to Covid-19 risk, the freight unit, which launched in 2017, has grown.

“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,” said Uber Freight chief Lior Ron.

Uber said it will retain a majority stake in Freight, using the money to expand the logistics platform and speed up technology innovation.

“We are excited to support Uber Freight in the next stage of its development,” said Greenbriar managing partner Michael Weiss.

“We believe that carriers and shippers will be increasingly attracted to the convenience and simplicity that Uber Freight offers in a complex marketplace.”

Greenbriar has been involved in the logistics sector for decades and brings expertise that Uber Freight can tap into, Weiss added.

Uber reported a $1.8 billion loss in the second quarter of this year as the Covid-19 pandemic caused its shared-ride business revenue to plunge.

Meanwhile, California has filed lawsuits against Uber and Lyft for alleged wage theft by misclassifying drivers as independent contractors rather than employees, in violation of a recently enacted state law.

Uber, Lyft and DoorDash are backing a state ballot initiative in November’s election which would classify rideshare drivers and other gig-economy workers as independent contractors, while offering certain benefits such as minimum wage, sick leave and workers’ compensation.

  • bio
  • twitter
  • facebook
  • latest posts

LMBCBUSINESS.COM uses both Facebook and Disqus comment systems to make it easier for you to contribute. We encourage all readers to share their views on our articles and blog posts. All comments should be relevant to the topic. By posting, you agree to our Privacy Policy. We are committed to maintaining a lively but civil forum for discussion, so we ask you to avoid personal attacks, name-calling, foul language or other inappropriate behavior. Please keep your comments relevant and respectful. By leaving the ‘Post to Facebook’ box selected – when using Facebook comment system – your comment will be published to your Facebook profile in addition to the space below. If you encounter a comment that is abusive, click the “X” in the upper right corner of the Facebook comment box to report spam or abuse. You can also email us.