Uber Freight has announced that it is investing $200 million to “put down roots” in Chicago.
“Chicago is consistently at the forefront of innovation, from building America’s foundational transportation systems and its first skyscraper, to fostering world-class universities and research centers. The city has always been at the heart of the global transportation industry, and we’re eager to continue that legacy. Tapping into Chicago’s rich history and incredible potential, we’ll be investing $200 million annually in the region, through headcount, real estate investment and other expenses to support Uber’s local operations,” Lior Ron, head of Uber Freight, wrote in a blog post.
“Strengthening that team and shepherding in the next era of growth for Uber Freight will be our priority in Chicago. We’ll grow our team significantly, hiring thousands of new team members who are inspired by our mission to reimagine modern logistics. Specifically, Chicago will quickly become our first engineering hub outside of San Francisco, where we’ll scale the team that keeps pushing our technology forward,” he added.
Since its launch three years ago, Uber Freight now has a team of hundreds, with offices in San Francisco, Chicago, and Amsterdam. And in July, the company announced that it was going after its second European market with the launch of its trucking platform in Germany. The move puts Uber in direct competition with local startups like Berlin-based Sennder and the UK’s Zencargo and FreightHub. Sennder recently raised $70 million at a $300 million valuation and a wider presence in Europe. FreightHub raised $30 million in a Series B funding round.
Ron noted that the expansion into Chicago “is a testament to Uber’s long-term commitment to transforming the way goods move with Uber Freight. Alongside Eats and Rides, Uber Freight is constantly looking towards the next frontier — working to redefine what’s possible so that we can have the biggest impact on the people that keep our economy moving. I’m humbled by and proud of the work we’ve accomplished together, and I’m excited to see what opportunities Chicago unlocks for us.”