Uber’s Freight Unit Picks Up $500M Investment at $3.3B Valuation

Uber Technologies Inc.’s Uber Freight unit, one of the few bright spots in its most recent earnings report, has raised $500 million at a $3.3 billion valuation from an outside investor.

The company announced the news this morning. The investor is Greenbriar Equity Group, a New York-based private equity firm that is taking a minority stake of undisclosed size in the unit as part of the transaction.

Uber, best known for its eponymous ride-hailing service, has expanded into numerous other areas of the logistics sector as part of its quest to drive revenue growth. One such area is cargo shipping. The Uber Freight unit offers a service through which businesses can find logistics providers and book space on a truck similarly to how a consumer would book a ride via Uber’s main app.

Uber Freight was one of the few bright spots in the company’s second-quarter earnings. The unit’s revenue rose 27% year-over-year, possibly thanks partially to the global increase in e-commerce orders, even as the company’s overall revenue dropped 27%. Greenbriar Equity Group is now betting $500 million that this growth will continue.