Uber launches trucking service, Uber Freight in Germany

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Ride-hailing giant, Uber Technologies Inc has just floated its trucking business called Uber Freight in Germany.

The launch of its trucking business in the German market is significant for many reasons.

First is that Uber does not operate its ride-hailing services in Germany because it was blocked by transport regulators over its ability to disrupt the business of local taxi operators.

The launch of Uber Freight is also a major benefit to Uber given the potentials in the European trucking and logistics market estimated to worth about $500 billion in annual revenue valuation.

However, Uber will be facing off with sennder, a local trucking startup that has raised $70 million in funding according to data compiled by Reuters.

However, Uber will also be latching on its pedigree in operating its trucking service where Uber has already connected about 48 states with a quarterly revenue of about $140 million according to data compiled by Reuters.

It is not clear if Uber will be launching the service across Europe in the next few quarters but analysts project that a German launch would give it an opportunity to enter several European markets as a result of the common trading arrangements across the European Union.

Valued at $100 billion after its New York Stock Exchange listing, Uber has not made a profit but it has stopped subsidising its drivers, reduced costs and it has also started new service lines such as its helicopter service and food delivery service called Uber Eats.

Lyft Inc, the second largest competitor to Uber has since focused on ride-hailing while former Taxify now called Bolt has remained focused on emerging markets.