Uber Freight Targets Tenfold Growth in Europe by 2028

Uber Freight is setting its sights high as it turns its attention to the European freight market. With 200 million euros in freight currently under management, the company aims for a substantial tenfold increase to 2 billion euros by 2028.

In the U.S., Uber Freight's recent financial performance has been a mix of impressive achievements and significant challenges. The company has managed to reach $18 billion in freight under management worldwide, demonstrating its vast scale and potential in the freight sector. However, it has faced several financial hurdles:

• Profitability Struggles: There's been continued negative EBITDA for six consecutive quarters, underlining ongoing operational challenges.
• Earnings Downturn: The company reported earnings of minus $14 million, showing difficulties in achieving profitability.
• Revenue Decline: There was a 16.8% drop in revenue from Q4 2022, with the figure barely surpassing the previous lows at $1.28 billion.

Despite a nearly 25% drop in freight revenue in 2023 from the previous year, Uber Freight is leveraging its technology and brand strength, alongside its success in North America, to expand its presence in Europe.

The journey in Europe began in 2019 as a digital freight broker. However, after selling this segment to Sennder during the pandemic, Uber Freight made a strong return to the European market following the acquisition of Transplace in 2021.

Key Highlights:

• Bold Aim: Uber Freight plans to increase its freight under management in Europe from 200 million to 2 billion euros by 2028.
• Revenue Challenge: The company experienced a nearly 25% decrease in freight revenue in 2023.
• Sustainability Focus: Managing CO2 emissions is crucial in Europe, where there is a significant emphasis on sustainability in shipping.

CEO Lior Ron emphasized the company's commitment to sustainable shipping, noting the stark contrast between the European and U.S. markets regarding the importance of tracking and reducing CO2 emissions from shipping.

Sources: Bloomberg | FreightWaves