Uber Freight's Troubled Past and Uncertain Future

Uber Freight, the tech-enabled freight brokerage platform, has been operating at a loss every year since its inception in 2017, except for 2022. Despite the pandemic surge in demand and cargo rates, legacy freight brokers posted large profits. With the trucking industry in a downturn, Uber Freight's reliance on its app and AI technology has failed to generate profits, and the departure of CEO Lior Ron to driverless truck startup Waabi may signal a shift in strategy.

Uber Freight, the tech-enabled freight brokerage platform, has been operating at a loss every year since its inception in 2017, except for 2022. Despite the pandemic surge in demand and cargo rates, legacy freight brokers posted large profits. With the trucking industry in a downturn, Uber Freight's reliance on its app and AI technology has failed to generate profits, and the departure of CEO Lior Ron to driverless truck startup Waabi may signal a shift in strategy.

The trucking industry is currently in its third year of a historically long downturn, with tariffs weighing on global trade and creating headwinds for manufacturers and retailers. This has led to a lack of demand rebound, making it difficult for tech-enabled platforms like Uber Freight to turn a profit. Legacy freight brokers, such as C.H. Robinson Worldwide Inc., have been able to adapt and post large profits, even during the downturn [1].

Uber Freight's acquisition of Transplace in 2021, close to the top of the bull market, was intended to accelerate its entry into the freight industry. However, this acquisition did not make the platform profitable, and the technological advantage that Uber was counting on did not materialize. Legacy freight brokers have successfully adopted digital platforms and incorporated AI, effectively beating back the threat from startup tech companies. Uber Freight is the only large digital freight startup left standing [1].

The departure of Lior Ron, the founder of Uber Freight, to Waabi, a driverless truck startup, may indicate a change in strategy for Uber. Ron will focus on developing customer and manufacturer partnerships and overseeing logistics for Waabi, which aims to launch driverless trucks later this year. Uber Freight's current CEO, Rebecca Tinucci, is a Tesla veteran who was hired to help develop infrastructure for Uber drivers who own electric vehicles. However, the unit's growth has stalled, and it is unlikely to become a growth engine like Uber's delivery business [1][2][3].

Uber Freight's challenges are further compounded by the fact that the unit's growth has stalled, and it is unlikely to become a growth engine like Uber's delivery business. The opportunity to revolutionize the trucking industry with digital technology has passed, and competitors have gone digital and are profitable. No amount of patience is going to change that.

References:
[1] https://www.bloomberg.com/opinion/articles/2025-08-15/uber-freight-is-stuck-in-a-no-win-situation
[2] https://www.ainvest.com/news/waabi-autonomous-trucking-startup-hires-uber-freight-founder-ron-coo-2508/
[3] https://www.indexbox.io/blog/waabi-appoints-uber-freight-ceo-lior-ron-as-coo-to-scale-autonomous-trucking/