Uber sells $500 Mn stake in its freight business as the ride-hailing giant works to conserve cash

Uber said Friday that an investor group led by New York-based investment firm Greenbriar Equity Group has committed to invest $500 Mn in a Series A preferred stock financing for Uber Freight . The deal values the unit at $3.3 Bn on a post-money basis. Greenbriar managing partners Michael Weiss and Jill Raker will join the Uber Freight board. Uber didn’t name the other investors.

Uber said it will maintain majority ownership in Uber Freight and will use the funds to continue to scale its logistics platform, which helps truck drivers connect with shipping companies.

Uber Freight launched in 2017. In August 2018, it was spun off into a separate business unit, a move that simultaneously allowed it to gain momentum and burn more cash. After spinning off of Uber, the freight company underwent an expansion. Uber Freight redesigned its app, an improvement that included adding new navigation features to make searching for and filtering loads easier to customize.

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