Uber will spend $2 billion to expand its freight business

Uber will spend at least $2 billion over the next decade to expand its freight business, as it announced the unit’s new headquarters in Chicago, Illinois. The ride-hailing company said yesterday it planned to hire 2,000 Uber Freight employees in the US city over the next three years and it has leased the Old Chicago Main Post Office building. Uber Freight, which launched two years ago, says that it connects customers including large companies such as Nestlé, Colgate-Palmolive and Anheuser-Busch InBev to a network of 400,000 drivers across the US, many of whom work for small logistics companies, who can choose their routes and cargoes… Rivalling Uber Freight, ecommerce behemoth Amazon launched its own trucking brokerage this year, which is currently available in five US states… Uber’s expansion into the $700 billion US road freight industry comes as the lossmaking company tries to diversify from its core ride-hailing business. After launching Freight in 2017, Uber rolled out electric bikes and scooters in 2018. It has also offered an on-demand food delivery service, Uber Eats, since 2014. The company said Freight was one of the “fastest-growing logistics companies in US history” and was among its fastest-growing divisions.

Camilla Hodgson