Arab Press

بالشعب و للشعب
Tuesday, Feb 24, 2026

Uber Founder Turns Real-Estate Mogul for Ghost Kitchen Startup

Uber Founder Turns Real-Estate Mogul for Ghost Kitchen Startup

Entities tied to Travis Kalanick’s CloudKitchens, a startup that rents out space to businesses that prepare food for delivery, have bought more than 40 properties for more than $130 million.
The former chief executive of Uber Technologies Inc. has been quietly assembling a mini real-estate empire over the past two years, acquiring closed restaurants, auto-body shops and warehouses for use in his new ghost kitchen venture.

Entities tied to Travis Kalanick’s CloudKitchens, a startup that rents out space to businesses that prepare food for delivery, have bought more than 40 properties in nearly two dozen cities for more than $130 million, according to a Wall Street Journal review of public property and corporate records and data from the commercial real-estate database Reonomy.

The analysis linked various limited-liability companies that own the properties to business addresses of CloudKitchens’ parent, City Storage Systems LLC, and to its senior leaders. These acquisitions include buildings from Portland, Ore., and Las Vegas to Columbus, Ohio, and Nashville.

While real-estate brokers said they were aware that Mr. Kalanick’s firm had been in the market, the extent and value of his investments has never been reported. The amount invested in real estate makes him an outlier among startups.

The acquisitions are a big bet on the fast-growing food-delivery business. Delivery-only kitchens have been around for years and have raised hundreds of millions of dollars from venture investors hoping to replicate the success of the co-working industry, which built a multibillion-dollar business by essentially subleasing real estate. The pandemic gave a big boost to ghost kitchens in cities like Los Angeles, San Francisco and New York, where many restaurants temporarily closed or went out of business.

Mr. Kalanick isn’t the only Uber veteran to get into the business. Virtual Kitchen Co., co-founded by former Uber executives Ken Chong and Matt Sawchuk, said in a filing with the Securities and Exchange Commission last month that it had raised around $20 million in funding. SoftBank Group Corp. -backed Reef Technology and Kitchen United are also part of this budding industry.

Mr. Kalanick’s competitors rarely acquire real estate. They typically lease or sign revenue-sharing deals with landlords. Companies can expand more quickly without shelling out cash or borrowing heavily to acquire buildings.

But some landlords have been reluctant to rent to ghost-kitchen operators because they often require a complicated rebuild and the business model is still relatively unproven. Reef has been placing mobile kitchen pods in parking lots.

CloudKitchens’ strategy takes market risk, but it could pay off if recently falling property values rebound.

Entities tied to CloudKitchens paid $9.2 million for a vacant restaurant space in Miami Beach in May and $6.6 million for an industrial property in Queens, N.Y., in March, the Journal’s analysis shows. In some cases, CloudKitchens has been able to buy buildings at bargain prices because of the pandemic, brokers say.

Mr. Kalanick has money to spend. Last year CloudKitchens raised $400 million from Saudi Arabia’s sovereign-wealth fund. Goldman Sachs has been financing his acquisitions and developments with millions in loans, property records show.

The 44-year-old, who co-founded Uber, stepped down as the ride-hailing company’s CEO in 2017, following pressure from investors. The company fired more than 20 employees after an internal investigation into allegations that Uber created a workplace permissive of sexism and sexual harassment. Mr. Kalanick at the time said he “accepted the investors’ request to step aside.” His spokeswoman told The Wall Street Journal last year that he had sold all his stock in the company for more than $2.7 billion.

He is hardly the first investor to use limited-liability companies to acquire properties. Keeping real-estate deals quiet maintains privacy and can leave competitors in the dark about a company’s expansion plans.

Amazon.com Inc. asked local officials and brokers to sign nondisclosure agreements while it was searching for second headquarter sites, according to a number of real-estate firms.

But brokers and property analysts say Mr. Kalanick’s discretion rises to unusual levels. CloudKitchens doesn’t identify its locations on its website, and they usually aren’t shown on Google Maps. Mr. Kalanick has told employees not to name CloudKitchens in their LinkedIn profiles.

Real-estate agents in Memphis and Seattle say they signed contracts in recent weeks to sell properties to an investment firm that plans to turn them into delivery-only kitchens. They weren’t told much about the buyer, but around the same time as the contracts were signed, limited-liability companies named after the properties’ addresses were registered to the 41st floor of a Los Angeles office tower, a business address of City Storage Systems, corporate records show. It is unusual that a commercial real-estate broker wouldn’t know the identity of a buyer, brokers said.

Last year, representatives of an investment firm started touring a Los Angeles furniture store that was listed for sale. A big, open space located just off the San Diego Freeway, it was the perfect place for a food-delivery business, according to the listing agent Sheri Messerlian. Different groups of people showed up numerous times to inspect every corner. The property owner started getting impatient, she said.

The suitors said little about themselves. Ms. Messerlian started digging but couldn’t find much information.

“I finally gave up,” she said. They were good for the money, and that was what mattered. In April, the investors bought the space for $2.95 million after getting a $200,000 pandemic discount.

Public records show that a City Storage Systems representative signed the application to register the LLC that now owns the property, which is registered to the 41st floor of the Los Angeles office tower.
Newsletter

Related Articles

Arab Press
0:00
0:00
Close
GCC Secretary-General Holds Talks with EU Ambassador in Riyadh
Gulf States’ AI Investment Drive Seen as Strategic Bet on Technology and U.S. Security Ties
African Union Commission Chair Meets Saudi Vice Foreign Minister to Deepen Strategic Cooperation
President El-Sisi Holds Strategic Talks with Saudi Crown Prince in Riyadh
Lucid Unveils Up to $12,000 Incentive for Air and Gravity Models in Saudi Arabia
Saudi Arabia Enters Global AI Partnership, Expanding Its Role in International Technology Governance
Saudi Arabia’s Landmark U.S. LNG Agreement Signals Major Strategic Shift
Saudi Arabia Accelerates Global Gaming Push with Billion-Dollar Deals and Expanded PIF Mandate
Saudi Arabia Reports $25.28 Billion Budget Deficit in Fourth Quarter of 2025
Alvarez & Marsal Tax Establishes Dedicated Pillar Two and Transfer Pricing Team in Saudi Arabia
United States Approves Over Fifteen Billion Dollars in Major Arms Sales to Israel and Saudi Arabia
Pre-Iftar Walks Gain Momentum as Ramadan Wellness Trend Spreads
Middle East Jackup Rig Fleet Contracts Further After Saudi Drilling Suspensions
Türkiye and Saudi Arabia Prepare to Sign Five Gigawatt Renewable Energy Deal at COP31
King Mohammed VI Congratulates Saudi Leadership on Founding Day, Reaffirming Strategic Ties
US Envoy Huckabee Clarifies Remarks on Israel After Expansionism Controversy
Saudi Arabia Introduces Limited Exceptions to Regional Headquarters Requirement for Foreign Firms
Saudi Arabia Joins Global Partnership on Artificial Intelligence, Elevating Its Role in Shaping AI Governance
Saudi Arabia and Arab States Mobilise Diplomatically After U.S. Envoy’s Israel Remarks
Cristiano Ronaldo Reaffirms His Commitment to Saudi Arabia Amid Transfer Speculation
Proposed US-Saudi Nuclear Deal Raises Questions Over Uranium Enrichment Provisions
Saudi Arabia Sends 81st Aid Flight to Gaza as Humanitarian Air Bridge Continues
Global Games Show Riyadh 2026 Positioned as Catalyst for Saudi Arabia’s Vision 2030
Saudi Arabia Eases Procurement Rules, Allowing Foreign Firms Greater Access to Government Contracts
Türkiye and Saudi Arabia Seal Two Billion Dollar Solar Energy Agreement
Saudi Crown Prince Reportedly Sends Letter to UAE Leader Over Yemen and Sudan Policies
Saudi Arabia Voices Concerns to UAE Over Sudan Conflict and Yemen Strategy
Saudi Arabia Joins Global Artificial Intelligence Alliance to Strengthen International Collaboration
Shura Island Positioned as Flagship of Saudi Arabia’s Ambitious Red Sea Tourism Drive
Saudi Arabia Rebukes Mike Huckabee Over Remarks in Tucker Carlson Interview
OpenAI CEO Sam Altman praises the rapid progress of Chinese tech companies.
Concerns Mount Over Potential Saudi Uranium Enrichment in Prospective US Nuclear Accord
Trump Directs Government to Release UFO and Alien Information
Trump Signs Global 10% Tariffs on Imports
Investability Emerges as the Defining Test of Saudi Arabia’s Next Market Phase
Saudi Arabia’s Packaging Market Accelerates as Sustainability and E-Commerce Drive Transformation
Saudi Arabia Unveils $32 Billion Push Into Theme Parks and Global Entertainment
Saudi Crude Exports to India Climb Sharply, Closing Gap With Russia
Saudi Arabia’s Halal Cosmetics Market Expands as Faith and Ethical Beauty Drive Growth
ImmunityBio Secures Saudi Partnerships to Launch Flagship Cancer Therapy
United Kingdom Denies U.S. Access to Military Base for Potential Iran Strike
Türkiye and Saudi Arabia Launch Expanded Renewable Energy Partnership
US Supreme Court Voids Trump’s Emergency Tariff Plan, Reshaping Trade Power and Fiscal Risk
Mongolian Mining Family’s HK$247 Million Stanley Home Purchase Highlights Resilient Luxury Market
UK Intensifies Efforts to Secure Saudi Investment in Next-Generation Fighter Jet Programme
Saudi Arabia Tops Middle East Green Building Rankings with Record Growth in 2025
Qatar and Saudi Arabia Each Commit One Billion Dollars to President Trump’s ‘Board of Peace’ Initiative
Ramadan 2026 Prayer Times Set as Fasting Begins in Saudi Arabia and Egypt Announces Dates
Saudi Arabia Launches Ramadan 2026 Hotel Campaign to Boost Religious and Leisure Tourism
Saudi Arabia Seeks Reroute of Greece-Bound Fibre-Optic Cable Through Syria Instead of Israel
×