Uber Technologies has received a $500 million investment from Greenbriar Equity Group, a New York-based investment firm, in a Series A preferred stock financing for Uber Freight.
As part of the deal, Uber will maintain majority ownership in Uber Freight and will use the funds to accelerate the development of its logistics platform. Michael Weiss and Jill Raker, managing partners of Greenbriar, will also join the Uber Freight board of directors.
“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,” said Lior Ron, head of Uber Freight.
Uber Freight, which launched in 2017, developed driver-first carrier tools to enable trucking companies and their drivers to book loads in the same manner as booking an Uber ride. According to the company, when the COVID-19 pandemic first hit, it was able to leverage its technology to help supply businesses with essential goods.
“Uber Freight has created an innovative and effective approach to logistics technology that we believe is highly scalable in the coming years,” said Weiss. “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.”
According to a recent Wall Street Journal report, the investment comes at time when Uber’s ride-hailing business has been negatively affected by the COVID-19 pandemic, motivating the company to cut jobs and re-evaluate businesses such as Freight.