Uber to Double Investment in Uber Freight

Uber sees potential in its freight unit and plans to operate it as a stand alone company.

Uber Freight

Despite shuttering its autonomous long-haul freight program, Uber is planning on doubling its investment in the Uber Freight unit over the next year. 

With the investment, Uber Freight will no longer be part of Uber's Advance Technologies Group, but a stand alone company, DC Velocity reports. In addition, Uber will buy Otto Trucking, one of the two units that had been controlled by Otto. The unit will develop technology to support logistics services for companies like Uber Freight. 

The restructuring shows the the positive aspects of the Uber Freight business and how Uber is prioritizing it. 

DC Velocity reports that since opening last year, it has doubled its load volume every quarter. However, it has been reported that Uber Freight is only generating 3 percent gross margins on an annual revenue of $500 million.