Ubers new headquarters in Chicago will invest $2 billion to expand the freight sector

 Ubers new headquarters in Chicago will invest $2 billion to expand the freight sector

Peng Mei News Reporter Cheng Tianmeng Comprehensive Report

Uber, the U.S. online contract car giant, announced that it would establish a new headquarters in Chicago, Illinois, and said it would spend at least $2 billion to expand its freight business over the next 10 years.

According to the Financial Times on September 9, Uber said on the same day that the company had rented the headquarters building of the Old Chicago Post Office and planned to employ 2,000 freight operators in Chicago in the next three years.

Uber Freight, launched in 2017, has customers including Nestle, Colgate Palm Lam, Budweiser InBev and a network of 400,000 drivers across the United States. Many of them are drivers working for small logistics companies, who can choose their own routes and goods and deliver goods to Uber at the same time.

Uber freight business model is similar to broker model. As a broker, a commission is charged from the company that wants to deliver the goods. For example, shippers are willing to pay $1,000 for a shipment. On Uber App, the order may be issued for $850 and Uber gets the difference. Uber said it was also possible that Uber would bear the difference if the final cost of the single cargo was higher than the shipper would initially be willing to pay.

Amazon may be an important competitor for Uber freight. In 2019, Amazon launched its own truck brokerage business, which has been launched in five states in the United States.

Although the core network contract business continues to lose money, Ubers business expansion has never stopped. In 2017, Uber extended its antenna to the $700 billion U.S. road freight industry and launched Uber freight. Subsequently, in 2018, Uber launched shared bicycles and scooters. In addition, since 2014, Uber has also provided on-demand meal delivery service UberEats.

Uber said that Uber freight is one of the fastest growing logistics companies in American history and one of the fastest growing sectors of the company.

In the first half of 2019, Ubers other business sales revenue mainly came from freight, shared bicycles and scooters, up 206% from $340 million in the same period last year, but it still accounts for only a small part of Ubers total revenue. Ubers total revenue during the period was $6.27 billion, up 17% from the same period last year.

According to business insider reports on September 9, Ubers large-scale recruitment of personnel continues in cargo and other businesses. In Texas, Uber already has a sizeable branch in Austin, and will open a new office in Dallas that will accommodate 3,000 employees. When fully operational, it will become the largest branch outside the Uber office in San Francisco, surpassing the size of Chicago. According to local news reports, by the end of 2019, the Dallas branch will employ or transfer 400 employees.

Source of this article: Peng Mei News Responsible Editor: Qiao Junyi_NBJ11279