Series A investment by Greenbriar will accelerate adoption and expand reach
Uber Technologies, Inc. and Greenbriar Equity Group, L.P. announced that an investor group led by Greenbriar has committed to invest US$500.0 million in a Series A preferred stock financing for Uber Freight, the logistics arm of Uber, valuing the unit at US$3.3 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.
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.
Just two weeks ago, it was announced that sennder had acquired Uber’s European freight business in an all-stock transaction. The two companies have joined forces to further revolutionise the digital freight industry across Europe, the US and Canada. Uber will acquire a minority stake in sennder as part of this deal, and its European freight business will continue operating under the sennder brand.
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 23.0% 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.
The initial closing of the transaction is expected to occur in October 2020, subject to customary closing conditions.