London Daily

Focus on the big picture.
Monday, Apr 06, 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

0:00
0:00
Close
UK Considers Deploying Aircraft Carrier for US Independence Day Celebrations Amid Renewed Transatlantic Focus
United Kingdom Moves to Attract AI Firm Anthropic Amid Tensions with US Defense Officials
RAF Intercepts Iranian Drones in Middle East to Defend Allied Security Interests
Labour Signals Shift on Foie Gras and Fur Restrictions to Advance EU Trade Talks
Seven Arrested Near RAF Base as UK Authorities Respond to Protest Activity
Economic Pressures Mount as Analysts Warn UK Growth Is Being Constrained by Policy Burdens
UK Green Party’s Push for Church-State Separation Sparks Debate Over National Identity
Strategic Island Emerges as Growing Challenge for United States and United Kingdom Defense Planning
Pepsi Pulls Sponsorship from UK Festival Following Backlash Linked to Kanye West
Signs Emerge of Declining Enthusiasm for Social Media in the United Kingdom
Security Alert Raised Ahead of Meghan Markle’s Planned Visit to Australia
UK Food Halls Defy Hospitality Slowdown, Emerging as Bright Spot in Challenging Market
UK Sets Firm Conditions for Military Action, Insisting on Legal Mandate and Clear Strategy
UK Medicines Regulator Launches Probe into Peptide Clinics Over Health Claims
New North Sea Drilling Unlikely to Significantly Cut UK Gas Imports, Analysis Finds
Woman Linked to UK’s First All-Female Terror Plot Faces Deportation
Downed US Aircraft Over Iran Linked to Operations from UK Airfield
Two Men and Teen Detained in UK Following Attack on Jewish Charity Ambulance
UK Police Launch Inquiry After Firearms Left Unattended Outside Mayor’s Residence
Giuffre Family Calls on King Charles to Meet Epstein Survivors During US Visit
Amber Wind Warning Issued as Storm Dave Approaches Parts of the United Kingdom
Prince Harry and Meghan’s Australia Visit Set to Draw Heightened Global Attention
UK Considers Entry Fees for Overseas Visitors at Major Museums Ahead of 2026 Travel Season
UK Prime Minister and Kuwait Crown Prince Coordinate Security Response After Regional Escalation
Calls Grow to Expand Fully Paid Maternity Leave for UK Teachers Amid Workforce Pressures
UK Secures Tariff-Free Access to US Market in Landmark Pharmaceuticals Agreement
Trump Projects Strength in Critique of UK Leadership and Naval Readiness
UK FinTech Setback as VibePay and Smartlayer Cease Operations Amid Funding Pressures
UK Leads Global Coalition of Over Forty Nations to Address Strait of Hormuz Crisis
UK Firms Urged to Accelerate Preparation as New Sustainability Reporting Rules Take Shape
UK Moves Rapid Sentry Air Defence System to Kuwait After Drone Strike Escalation
Transatlantic Relations Tested as UK Seeks Balance While Trump Reshapes Strategic Approach
Trump’s Strategic Pressure on UK Seen as Push for Stronger Alignment and Fairer Terms
UK Focuses on Trade Finance to Secure Critical Materials for Defence and Energy Sectors
Majority of UK Businesses Hit by Middle East Conflict While Confidence Holds Firm
UK Royal Navy Faces Renewed Scrutiny as Debate Intensifies Over Capability and Readiness
Reform UK Faces Mounting Distractions as Policy Agenda Struggles to Gain Traction
Investigation Launched Into Northern Cyprus IVF Clinics After UK Families Receive Incorrect Sperm
International Meeting Issues Unified Call to Safeguard Navigation Through Strait of Hormuz
Potential Strait of Hormuz Closure Raises Concerns Over UK Food and Medicine Supply Chains
UK Leads Coalition of Over Forty Nations Urging Iran to Reopen Strait of Hormuz
UK Secures Tariff-Free Access for Medicines in Landmark US Pharma Trade Agreement
King Charles III Invited to Address Joint Session of U.S. Congress in Rare Diplomatic Honor
Debate Grows Over Whether Expanded North Sea Drilling Can Reduce UK Energy Bills
UK Faces Heightened Risk of Jet Fuel Shortages, Airline Chief Warns
UK Ends Police Investigations into Lawful Social Media Posts After Review Finds Overreach
Abramovich Moves to Establish Charity for Frozen Chelsea Sale Proceeds Amid UK Dispute
Starmer Reaffirms NATO Commitment While Responding to Trump’s Strategic Critique
UK Aid Reductions Raise Fears of Severe Human Impact Across Parts of Africa
UK Signals Renewed Push for EU Cooperation as Iran Conflict Reshapes Security Landscape
×