24 C
New York

Fate of Uber Freight unclear following losses and major layoffs at parent company


Uber is reportedly “re-evaluating” its trucking operations after steep financial losses and thousands of layoffs amid the Coronavirus crisis.

Uber recently announced they they would lay off 3,000 employees and shutter 45 offices in an effort to cut costs as the company has seen an 80% reduction in demand for ride-hailing services caused by Coronavirus. The news of the layoffs came only a couple of weeks after Uber announced an initial 3,700 worker layoff.

The 6,700 laid off workers make up about a quarter of Uber’s global workforce.

These job cuts are expected to save Uber $1 billion per year.

In the wake of the layoffs, digital brokerage company Uber Freight is under “re-evaluation” by parent company Uber as the company considers the viability of non-core businesses, according to a report from the Wall Street Journal.

Uber Freight lost $81 million in the fourth quarter of 2019 and $64 million in the first quarter of 2020.

Uber says that they remain committed to “growing the Uber Freight business, innovating in the Freight industry, and supporting our partners—carriers and shippers alike. Today’s news does not impact our product road map, or our ability to provide best-in-class service to our customers.”

Earlier this month, Uber Freight announced that they had moved tens of thousands of touchless loads for key customers since fall 2019.


Get the hottest daily trucking news

This Week in Trucking