Uber’s Re-Evaluation of Freight Follows Steep Losses

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Uber’s Re-Evaluation of Freight Follows Steep Losses
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Uber, reeling from the impact of the coronavirus pandemic, is re-evaluating its Uber Freight operation as it slashes jobs and cuts costs

By Jennifer Smith Close Jennifer Smith May 18, 2020 5:10 pm ET Uber Technologies Inc.’s truck-brokerage business has helped reshape freight brokerage, but it might not be doing enough to shore up the finances at its parent company.

Newsletter Sign-up The Logistics Report Top news and in-depth analysis on the world of logistics, from supply chain to transport and technology. Uber Freight had until recently been in expansion mode. In September Uber unveiled plans for a Chicago hub that would serve as its Freight headquarters, saying it planned to hire thousands of employees.

Uber’s digital load-matching “is fairly vanilla, and only the tip of the service iceberg [that] brokers provide,” said Jeff Tucker, chief executive of Haddonfield, N.J.-based freight broker Tucker Company Worldwide Inc. “With a plethora of digital freight matching technologies being employed by incumbent brokers, it’s tough for startups to make a meaningful dent.”Uber Freight and its digital rivals are still small players compared with the sector’s biggest operators.

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