Uber is considering splitting up the freight logistics department of Uber Flight,which may be sold or listed after splitting up,because Uber wants to streamline its business and concentrate on running the taxi and meal delivery business.
Uber is discussing the issue of spin-off with potential consultants.Uber is not in a hurry to make a decision about the direction of the Flight department.The company’s plan may change.A person familiar with the matter said that the Freight division was more likely to go public.Another person familiar with the matter said that if Uber pushed Freight to go public,it might have to wait until next year,and whether to go public depends on market conditions.
Uber’s share price fell 0.38%to US$34.01 in the regular trading on Wednesday,with a market value of about US$68.4 billion.
Uber’s taxi business and meal delivery business are still growing,but the freight business is in a difficult situation,mainly because the whole truck transportation industry is in a slump.Uber’s revenue in the fourth quarter of last year was$8.6 billion,higher than analysts’expectations.The taxi and meal delivery businesses still performed well under high inflation.In January this year,the Flight Department announced that it would cut 3%of its employees.
Nelson Chai,the chief financial officer of Uber,acknowledged that Freight would face challenges in the future because the whole industry suffered cyclical decline at the fourth quarter financial report meeting.
In 2017,Uber founded Freight,which matches truck companies with users who want to outsource transportation business.The model is somewhat similar to online car rental.In 2020,Uber sold part of its Flight shares to investors for$500 million.In 2021,Freight acquired Transplace,a logistics company,at a price of 2.25 billion dollars.The revenue of Flight accounted for about 18%of the total revenue of Uber,reaching US$1.5 billion in the fourth quarter of last year,up 43%from the same period last year.