Heads up, Convoy: Uber is doubling down on its trucking venture.
Uber announced Monday that it will invest $200 million annually and hire thousands at a new Uber Freight headquarters in Chicago, signaling the company’s optimism for its on-demand trucking marketplace that launched in May 2017.
Uber Freight helps match carriers with shipper’s loads, using technology to expedite and automate a traditionally manual process that involves email and phone calls. Since launch, Uber has contracted with more than 50,000 carriers and served more than 1,000 shippers, including corporations such as Anheuser-Busch InBev, Niagara, Land O’Lakes, and Colgate-Palmolive. In March it expanded to Europe and is already growing to various countries.
In its latest quarterly report, Uber said revenue in its Other Bets category, largely driven by Uber Freight, tripled to $340 million in the first half of the year.
“It is going to take a couple of years, but this is a multibillion dollar industry and we think we have got kind of the best solution with the best tech and a great brand. And we think we can succeed there very much so,” Uber CEO Dara Khosrowshahi told CNBC last month.
Uber Freight competes directly with Seattle-based Convoy; it