Please ensure Javascript is enabled for purposes of website accessibility

Uber Freight Raises $500 Million From Logistics Specialist

By Howard Smith – Oct 2, 2020 at 11:13AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The investment led by Greenbriar Equity values the Uber platform at $3.3 billion.

Uber (UBER 1.45%) announced today that its freight platform has received a $500 million investment from an investor group led by Greenbriar Equity Group. The investment values Uber Freight at $3.3 billion. 

Uber will keep majority control of Uber Freight, and said in a statement that it plans to use the investment to continue to scale up the logistics platform and provide its shippers with "technology to power their supply chains." 

semis driving down a highway at sunset

Image source: Getty Images.

Greenbriar Equity Group has more than $4 billion in invested capital, and specializes in the transportation sector, including logistics, distribution, vehicle aftermarket support, and aerospace. In connection with the investment, two Greenbriar managing partners will join Uber Freight's board of directors. 

The investment firm says it typically partners with existing management teams, and will utilize its experience in logistics as well as its current network of operating partners to support "management's vision for growth." 

Uber launched its freight platform in 2017, seeking to provide services for both shippers and carriers, to simplify the movement of goods. Uber Freight says that carriers can book loads in the same easy way that people book Uber rides. Its technology also allows shippers the ability to easily plan, budget, and track shipments.

The investment comes in the form of preferred stock. Greenbriar managing partner Michael Weiss said that he believes Uber Freight provides convenience and simplicity that shippers and carriers will take advantage of in a complex marketplace.

Howard Smith has no position in any of the stocks mentioned. The Motley Fool recommends Uber Technologies. The Motley Fool has a disclosure policy.

Stocks Mentioned

Uber Technologies Stock Quote
Uber Technologies
UBER
$28.75 (1.45%) $0.41

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.