Uber Technologies Inc is exploring whether to spin off its Uber Freight logistics unit in a sale or as a separate publicly traded firm, Bloomberg News reported on Wednesday, citing people familiar with the matter.
Uber launched the freight division in 2017 and acquired logistics firm Transplace in 2021 for $2.25 billion. Uber Freight connects truckers with shippers, acting as middle-man in the long-haul trucking business.
For the 4th quarter of 2022 Uber Freights revenue was at 1.5 billion dollars up 49% YoY, accounting for 17.4% of the total revenue. The freight division EBITDA was -8 million dollars for the 4th quarter which was an improvement compared to the -25 million dollars in Q4 2021 but a fall from +1 million dollars in Q3 2022
Bank of America Merrill Lynch analyst Justin Post concluded that a sale of Uber Freight would likely come in at about 1x estimated 2024 revenue, which he put at approximately $7.85 billion. He also estimated Uber Freight’s EBITDA this year to be $139 million, which would be an enormous increase from the way the company exited 2022, posting EBITDA red ink.
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