Uber commits $200 million to Uber Freight expansion in bet on trucking and Chicago – gpgmail


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.


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Uber lays off 400 as cost-cutting efforts ramp up – gpgmail


Uber is laying off about one third of its 1,200-person strong marketing department in an effort to slash costs and make operations more efficient following its public debut and first quarter losses of $1 billion.

The layoffs were first reported by The New York Times.

About 400 people in Uber’s marketing department were laid off across its 75 offices globally, according to the company. Uber’s latest public global headcount was 24,494 global employees as of March 31, 2019.

Jill Hazelbaker, who leads marketing and public affairs at Uber, and CEO Dara Khosrowshahi told employees Monday that the marketing team would have a more centralized structure, according to an internal email viewed by gpgmail. 

The reorganized marketing team will be under the leadership of Mike Strickman, vice president of performance marketing, who joined from TripAdvisor a month ago, and another soon-to-be-hired head of global marketing. Strickman will oversee performance marketing, CRM and analytics, while the global marketing executive will manage the heads of product marketing, brand, Eats, B2B, research, planning and creative.

The layoffs are the latest cost-driven changes to occur at the company since it went public in May.

Many of Uber’s teams are “too big, which creates overlapping work, makes for unclear decision owners, and can lead to mediocre results,” Khosrowshahi said in an email sent to employees and shared with gpgmail. “As a company, we can do more to keep the bar high, and expect more of ourselves and each other.”

Khosrowshahi said the restructuring aims to put the marketing team, and the company, back on track.

“Today, there’s a general sense that while we’ve grown fast, we’ve slowed down. You can see it in Pulse Survey feedback and All Hands questions, and you can feel it in much of our day-to-day work. This happens naturally as companies get bigger, but it is something we need to address, and quickly,” he wrote.

Uber’s first quarterly earnings report as a publicly traded company gave a snapshot of a growing business with stunning operational losses. Uber’s revenue grew 20%, to $3.1 billion, compared to $2.5 billion in the same period last year. And its gross bookings rose 34%, to $14.6 billion, in the first quarter, with Uber Eats driving much of that growth.

But its loss from operations exploded 116%, to $1 billion, in the first quarter compared to the same year-ago period.

In June, chief operating officer Barney Harford  and chief marketing officer Rebecca Messina stepped down as part of an organizational shakeup put into motion just a month after the ride-hailing company went public.

At the time, Khosrowshahi explained in an email to employees that the changes were prompted by his decision to more directly control core parts of the business. Khosrowshahi told employees that he wants to be even more involved in the day-to-day operations of its biggest businesses, the core platform of Rides and Eats, and has decided they should report directly to him.


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