Benzinga - by Anusuya Lahiri, Benzinga Editor.
Uber Freight is aggressively pursuing growth in Europe’s diverse logistics sector, targeting a tenfold increase in its freight management to 2 billion euros by 2028 through a comprehensive digital platform that oversees companies’ entire supply chains.
Despite being a smaller segment of Uber Technologies Inc (NYSE:UBER), contributing 14% of its total revenue in 2023, Uber Freight’s revenue dipped nearly 25% from the previous year, primarily due to declining trucking rates.
However, the situation shows improvement as supply chain issues are resolved, and excess inventories normalize, Bloomberg reports.
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Lior Ron, the founder and CEO of Uber Freight, cites the success of major companies in North America as a critical driver for digital expansion in Europe, leveraging Uber’s technological and brand infrastructure and the demand from global customers for support in Europe.
Uber Freight recently announced that it is managing 200 million euros in freight within Europe, aiming to capture a more significant share of the 1.2 trillion euros logistics market, as estimated by McKinsey & Co.
Experts like McKinsey’s Florian Neuhaus see potential in standardizing transport management systems (TMS) across Europe.
In February, Uber reported fourth-quarter fiscal 2023 revenue growth of 15% year-on-year to $9.94 billion, beating the consensus of $9.76 billion.
Uber’s GAAP EPS of 29 cents beat the consensus of 17 cents. Trips grew 24% year-over-year to 2.60 billion, equivalent to 28 million per day.
Investors can gain exposure to Uber via First Trust US Equity Opportunities ETF (NYSE:FPX) and Global X Millennial Consumer ETF (NASDAQ:MILN).
Price Action: UBER shares traded higher by 0.50% at $77.86 premarket on the last check Tuesday.
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