Managed transportation provider Uber Freight announced Tuesday its European division has surpassed 200 million euros ($218.3 million) in freight under management, topping $18 billion in freight under management worldwide.
“Our European business is accelerating because we’re dedicated to offering precisely that. We bring the optionality and expertise needed to keep pace in a rapidly evolving landscape and, as we continue to invest in the region, we plan on cementing our role as the premier logistics partner in Europe,” said founder and CEO Lior Ron in the news release.
The company launched its operations, with offices in the Netherlands, Germany and Poland, in 2019. In 2020, the digital freight forwarder Sennder acquired the European arm of Uber Freight in an all-stock deal nearly $1.1 billion.
Once Uber Freight acquired Transplace in 2021, it relaunched its European business endeavors.
Uber Freight has set a goal to acquire 2 billion euros ($2.182 billion) in freight under management in Europe by 2028.
Even with these growth numbers, the company has been working to align itself with current market conditions, including slashing over 200 jobs in 2023 and an additional 50 jobs in early January.
Uber Freight’s earnings have not been attractive. The company saw continued negative earnings with minus $14 million in earnings before interest, taxes, depreciation and amortization for six consecutive quarters. Its revenue remained stagnant, barely surpassing previous lows at $1.28 billion, down 16.8% from Q4 2022.
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Jimmy
Uber itself is profitable. Uberfreight itself is incredibly unprofitable, and loses millions of dollars every single quarter.
Joe Thomas
Dear Broker,
Uber has surpassed 18 billion in Freight under management, meaning the total UF network is handling over $18 billion worth of freight. You referenced ‘bleeding money with no end in sight’ – I am unsure where you pull your financial information from but this is not true. Uber reported for the period ending on 12/31/23 that EPS was at .67 (highest since 2018) which was a year-over-year growth of 103%. If these metrics confuse you, I recommend taking an Introduction to Finance course.
Broker
Don’t you mean $1.8b under management? I’m confused. This math doesn’t add up above. Either way, they bleed money with no end in sight and several billion in total losses and funding past acquisitions on the balance sheet. Not the best biz model.