Uber Freight raises USD500 million in funding from Greenbriar Equity Group
An investor group led by Greenbriar has committed to invest USD500 million in a Series A preferred stock financing for Uber Freight, the logistics arm of Uber, valuing the unit at USD3.3 billion on a post-money basis.
Uber 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.
In connection with the investment, Michael Weiss and Jill Raker, Managing Partners of Greenbriar, will join the Uber Freight Board of Directors. With a combination of more than 40 years of investing experience in logistics, Mr. Weiss and Ms. Raker have been actively involved in many successful investments across the space, and will additionally draw on the counsel of the firm’s investment team and highly regarded network of operating partners in support of management’s vision for growth.
Uber Freight launched in 2017 with a mission to simplify the movement of goods to help communities thrive. Since then, the company has built one of the world’s largest digitally enabled carrier networks and transformed logistics management for thousands of shippers. Uber Freight’s driver-first carrier tools enable trucking companies and their drivers to book loads as seamlessly as they would book an Uber ride, while the company’s suite of on-demand logistics solutions, APIs, and software integrations provide shippers with the ability to seamlessly plan, budget, tender, and track their freight, no matter their procurement needs. During the early days of the COVID-19 pandemic, Uber Freight was able to leverage its technology to effectively and efficiently rebalance supply and demand and keep businesses moving and shelves stocked with essential goods.
“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,” says Lior Ron, Head of Uber Freight. “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.”
“We are excited to support Uber Freight in the next stage of its development with both our financial investment and our industry-leading experience in logistics,” says Michael Weiss, a Managing Partner of Greenbriar. “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 Series A funding comes on the heels of several months of significant momentum for Uber Freight. Alongside signing new API integration partnerships with some of the largest cloud TMS providers, including SAP, Blue Yonder, BluJay, MercuryGate, and Oracle, Uber Freight also expanded its enterprise software offering with the launch of Uber Freight Enterprise and Uber Freight Link, both of which put Uber’s technical power directly into the hands of large shippers and provide a central point of control for logistics operations. Carriers in the Uber Freight network were able to utilise new load bundling technology to reduce deadhead by as much as 23 per cent as well as take advantage of dedicated lanes, a feature that lets carriers lock in regular loads across 1,000-plus lanes and plan their operations up to three months in advance, giving them more flexibility and time to focus on running their business.