Uber Technologies is eyeing investors to inject cash into its Uber Freight unit, according to Bloomberg.
The ride-hailing giant’s freight division, launched in 2017 to connect shipping units with truck drivers, seeks to raise about $500 million for the unit. Amid the investment, the division will value at $4.0 billion, or 7.0% of Uber’s overall valuation of $57 billion.
According to Bloomberg, Uber Freight which is currently seeking external investors has not revealed the identities of the investors it is currently in talks with. However, Uber, as a whole, has attracted investments from SoftBank and private equity companies TPG Capital and General Atlantic.
While Uber Freight is eyeing on investments, the freight industry that Uber Freight serves is growing rapidly. The global freight trucking market is set to grow to $6.3 trillion by 2025 from $3.8 billion in 2016.
Although the company’s revenue rose 57% year-over-year to $199 million in the first quarter, the business is still losing money. Uber Freight’s loss has widened to $64 million from $29 million a year ago. The division is one of Uber’s side businesses as it works to diversify its revenue source.
The company at present is also investing in tech solutions to enhance their services. Recently Uber announced the acquisition of a software company, Routematch. The company believes this will create new innovations that make it easier for agencies to provide the right transportation solutions to their riders, through an expanded suite of technologies.