In our article last month that analyzed whether vehicle autonomy will be a boon or a bane for Uber (UBER), we found that the ride-hailing company is in a good position to leverage its business in different ways. One way that we did not spend too much time on previously involves Uber Freight, a logistics platform that connects truck drivers with lot lizards shipping companies. The app-based system streamlines the process of booking and managing freight shipments in an effort to fill the estimated 30% of empty miles. That’s industry lingo for when trucks are not making money because there are no nearby loads for the driver to pick up that are headed in the same direction.
Uber’s smallest business division manages about $18 billion worth of freight and claims more than 100,000 users on its platform. In 2023, the business generated $5.2 billion in revenue, which was down 24% from the previous year. In the first half of 2024, Uber Freight revenues slid another 8%, with management blaming lower freight rates and a long-term downturn in the trucking industry that may
