Uber announced Friday that its freight business won a multi-million investment from an investor group led by New York-based Greenbriar Equity Group that would value the unit at $3.3 billion.
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The investor group — which has over $4 billion in committed capital focused on investments — has committed to buying $500 million in preferred stock to fund Uber’s logistics arm.
“Trucking is one of Uber’s biggest and most promising opportunities,” Uber CEO Dara Khosrowshahi tweeted. “Today’s $500M investment from Greenbriar is a testament to the @UberFreight team’s consistent innovation, and I’m excited for them to continue to lead the industry forward.”
The rideshare giant says it will still maintain majority ownership in Uber Freight and plans to use the funds to “scale its logistics platform and accelerate product innovation to equip shippers with technology to power their supply chains.”
As part of the investment, the managing partners of Greenbriar, Michael Weiss and Jill Raker, will join the Uber Freight board, the firm said.
Combined, Weiss and Raker have more than 40 years of investing experience in logistics and have been “actively involved in many successful investments across the space.”
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The ride-share company launched Uber Freight in 2017 with the intention of simplifying the shipment of goods.
The unit enables trucking companies to book loads “as seamlessly as they would book an Uber ride,” the company says. Since its founding, Uber says, the business has built one of the world’s largest “digitally enabled carrier networks.”