Uber Freight, the logistics arm of Uber Technologies, Inc. (NYSE: UBER), raised $500M in Series A preferred stock financing.
An investor group led by Greenbriar Equity Group, L.P., a New York-based investment firm, committed to invest in the unit valuing it at $3.3 billion on a post-money basis. In conjunction with the investment, Michael Weiss and Jill Raker, Managing Partners of Greenbriar, will join the Uber Freight Board of Directors.
The initial closing of the deal is expected to occur in October 2020, subject to customary closing conditions.
Uber will maintain majority ownership in Uber Freight and will use the funds to expand its reach and accelerate product innovation.
Launched in 2017 and led by Lior Ron, Uber Freight has built a large digitally enabled logistics management network used by thousands of shippers. Its driver-first carrier tools enable trucking companies and their drivers to book loads while its suite of on-demand logistics solutions, APIs, and software integrations provide shippers with the ability to plan, budget, tender, and track their freight.
The Series A funding follows several months of growth 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, the unit 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.
Today, the business counts nearly 65,000 carriers in its network and thousands of shippers as customers, from small businesses to Fortune 500 companies, including AB Inbev, Nestle, LG, Niagara Bottling, Heineken, Land O’Lakes and more.