Uber is reportedly seeking a $500 million investment for its Uber Freight division in a deal that could value the company's Chicago-based shipping arm at $4 billion.
Uber has held talks with investors to raise $500 million for its Freight division, which matches shippers and carriers, according to Bloomberg. The report added that the deal has yet to be finalized and terms of the investment could change.
Uber Freight launched in 2017 and moved its headquarters to Chicago in 2019. At the time, it announced plans to hire 2,000 employees over the next three years, who would work out of Uber’s new space in the Old Main Post Office.
However, the coronavirus pandemic has seen Uber shed more than 6,000 jobs in 2020 and halt construction on its new Chicago office. Originally expected to move in this fall, Uber says it now plans to open the Chicago office in 2021.
Uber Freight is led by Lior Ron, the co-founder of self-driving truck startup Otto, which Uber acquired in 2016. Uber Freight posted revenues of $199 million during the first quarter in 2020, up more than 50%, though it posted a loss of $64 million, according to Bloomberg.
The news of the investment comes on the heels of Uber's failed attempt to buy Chicago-based Grubhub. Uber backed out of negotiations after the two reportedly couldn't make a deal, which allowed Netherlands-based Just Eat Takeaway.com to swoop in and buy Grubhub for $7.3 billion.
Uber then acquired rival Postmates just weeks later in a deal worth $2.65 billion.
