Shulou(Shulou.com)11/24 Report--

According to news in the morning of March 9, Beijing time, it is reported that Uber is considering spinning off Uber Freight's freight logistics department, which may be sold or listed after the split, because Uber wants to streamline its business and concentrate on running taxi-hailing and food delivery services.

Uber is discussing the spin-off with potential advisers, according to people familiar with the matter. Uber is in no hurry to decide where the Freight department is going, and there is the possibility of a change in the company's plan. The Freight division is more likely to go public, according to a person familiar with the matter. Another person familiar with the matter said that if Uber pushes Freight to go public, it may have to wait until next year, and whether it will be listed depends on market conditions.

Uber shares closed at $34.01 at 0.38% in regular trading on Wednesday, with a market capitalization of about $68.4 billion (currently about 476.064 billion yuan).

Uber's taxi-hailing and food delivery businesses are still growing, but the freight business is struggling, mainly because the entire trucking industry is depressed. Uber's revenue in the fourth quarter of last year was $8.6 billion, which exceeded analysts' expectations, and the taxi-hailing and food-delivery businesses still performed well despite high inflation. In January this year, the Freight department announced a 3 per cent layoff.

At the fourth-quarter earnings meeting, Uber Chief Financial Officer Nelson Chai (Nelson Chai) acknowledged that Freight will face challenges in the future because of the cyclical decline in the industry as a whole.

Uber launched Freight in 2017, which matches truck companies with users who want to outsource transportation, in a pattern similar to that of ride-hailing. Uber sold some of its shares in Freight to investors for $500m in 2020. In 2021, Freight bought logistics company Transplace for $2.25 billion. Freight, which accounts for about 18 per cent of Uber's overall revenue, reached $1.5 billion in the fourth quarter of last year, up 43 per cent from the same period a year earlier.

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