Uber Freight is establishing its headquarters in Chicago as part of Uber’s broader plan to invest more than $200 million annually in the region, including hiring hundreds of workers.
Uber said Monday it will hire 2,000 new employees in the region over the next three years, most of which will be dedicated to Uber Freight .
Uber Freight, which helps truck drivers connect with shipping companies, has become an important piece to Uber’s larger business strategy to generate revenue from all forms of transportation, including logistics for packages.
Since launching in May 2017, Uber Freight has grown from from limited regional operations in Texas to the rest of the continental U.S. and then to Europe.
Uber made Uber Freight a separate business unit in August 2018. Since then, the company has redesigned the app, adding new navigation features that make searching for and filtering loads easier to customize and more intuitive, as well as other features, including an updated map view and a search bar across the top of the screen.
It’s also made some key hires, one of which intimated the company’s global ambitions. The company hired Andrew Smith, one of Box’s early employees, to head up global sales at Uber Freight, and Bar Ifrach, formerly of Airbnb, to lead its marketplace team.
With signs of some success, Uber is doubling down on the trucking business.
Uber Freight has more than 400,000 drivers in its carrier network and 1,000-plus shippers as customers, including AB Inbev, Niagara Bottling and Land O’Lakes, according to the company. Uber Freight also has more than 50,000 carriers on the platform.
“I believe this makes Uber Freight the biggest virtual fleet in the United States,” Lior Ron, head of Uber Freight, told gpgmail in a recent interview.
The company has been relatively quiet as it has scaled up, Ron said, noting that this announcement marks a turning point for Uber Freight.
“This is really a graduation moment for us and where we can share that because the business is doing so well we are doubling down on our investment,” he said.
The new Uber office located in The Old Main Post Office in the historic Chicago River area will serve as Uber Freight headquarters and its first engineering hub outside of San Francisco.
“Trucking represents an enormous opportunity for Uber, and this milestone is a testament to our long-term commitment to our Freight business,” Uber CEO Dara Khosrowshahi said in a statement. “Chicago is the heart of America’s transportation and logistics industry, and there is no better place to open our dedicated Freight HQ. Uber has long recognized the incredible history, innovation, and talent that Chicago has to offer, and we’re excited about the thousands of new jobs our Freight business will help bring as we become one of the city’s largest technology employers.”
As part of its new investments in the region, Uber is collaborating with the Chicago Cook Workforce Partnership (CCWP) to help with workplace diversity. Uber will start onboarding new employees in 2020 and will work with CCWP to develop a process for identifying potential candidates through their system.