Uber Freight, a division of rideshare company, Uber Technologies, has announced it will lay off 150 employees, or about 3% of the segment’s total head count, according to a report by CNBC.
Uber Freight said the layoffs will be limited to its digital brokerage operations that match shippers with truckers seeking to haul cargo. The reason for the move was founded on headwinds faced by the logistics market which has impacted its customer base.
Uber moved into the trucking industry in 2017. It began its freight operation using the same concept that underpinned the company’s ride-hailing technology. In 2022, the division booked $1.8 billion in revenue for the third quarter of 2022, up 336% year over year.
With the move, Uber Freight joins the likes of trucking firm C.H. Robinson Worldwide and freight forwarding startup Flexport which have both made cuts to their workforce this year.
Also In December, delivery service DoorDash laid off 1,250 workers, weeks after ride-hailing platform Lyft cut 13% of its headcount.