Ti: Uber mulling sale of its Freight division

TRANSPORT INTELLIGENCE reports:

In the last week, press reports have revealed that Uber is considering a sale of Uber Freight. Bloomberg has reported that Uber is studying whether to spin off Uber Freight as a trade sale or as a stand-alone publicly traded company. A source quoted by Bloomberg stated that an IPO would be a more likely outcome.

Whilst Uber Freight’s valuation is uncertain, the company received two large investments in recent years. The first was Greenbriar Equity’s investment of US$500m in October 2020, with Uber valued at US$3.3bn for the transaction. The second was a US$550m investment from Abu Dhabi Growth Fund, D1 Capital and GCM Grosvenor with no value available.

Uber launched its freight division in 2017. Uber Freight counts nearly 60,000 carriers in its network and thousands of shippers as customers, from small businesses to Fortune 500 companies, including AB Inbev, Nestle, IFCO, Kroger, CostCo, Aldi, LG, Land O’Lakes and more. More than 1.7m truck drivers use Uber Freight.

The company sold off its European Freight Business to sennder GmbH in 2020, for US$77m. As part of the deal, sennder and Uber entered into a strategic agreement to provide enterprise shippers with freight logistics services across the US, Canada and Europe. The agreement includes a shipper referral program in which sennder will refer shippers seeking freight brokerage or similar services in North America to Uber Freight, and vice versa.

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