London Daily

Focus on the big picture.
Saturday, Sep 05, 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 Urges Households to Keep Emergency Supplies Amid Severe El Niño Warning
Prime Minister Andy Burnham Sets Out Regional Industry and Prison Reform Agenda
Siemens Energy Wins Rolls-Royce Small Modular Reactor Manufacturing Contract
UK Mortgage Costs Rise as Gilt Yields and Swap Rates Climb
Bank of England’s Huw Pill Calls for Prompt Rate Rise as Inflation Risks Persist
National Audit Office Warns UK Is Unprepared for Major Food Supply Disruptions
British Army Suspends Some Training Exercises as Budget Pressures Intensify
HMS Queen Elizabeth Deploys as NATO Allied Response Force Command Ship
Reform UK Suspends Two Senior Officials Over Alleged Foreign Donation Scheme
UK Reasserts Falkland Islands Sovereignty After Argentina Threatens Sanctions
Scottish Tech Company PureLifi Enters Administration With More Than 40 Job Losses
Scottish Government Names Alyn Smith Innovation and Education Minister
Green Party Co-Leader Zack Polanski to Contest By-Election for Keir Starmer’s Former Seat
Palestine Action Activists Appeal Terrorism-Related Prison Sentences
PwC Report Highlights Persistent Regional Spending-Power Divide Across Britain
UK Names Hundreds of Employers for Minimum Wage Violations
UK Commits £400 Million to International Tropical Forest Fund
UK Extends £2 Bus Fare Cap Across England Through 2027
UK Warns Travellers as US-Iran Tensions Disrupt Middle East Security and Shipping
Andy Burnham Faces Kemi Badenoch in First Prime Minister’s Questions
Kemi Badenoch Names Andrew Griffith Shadow Chancellor in Conservative Reshuffle
UK Treasury and Markets Focus on Fiscal Headroom Ahead of Autumn Budget
UK Government Reverses Early Release Plans for Serious Violent and Sexual Offences
UK and France Review Border Cooperation After 48,000 Small-Boat Crossings Prevented
UK Growth Outlook Weakens as Inflation and Energy Costs Rise
Breeding Tropical Mosquitoes Discovered in East London
Sadiq Khan Agrees to Search of Digital Communications in Palantir Lawsuit
Scottish Protesters Call for Moratorium on AI Data Centre Expansion
Uber Drivers Bring London Class Action Over Algorithmic Management
Reform UK Accepts £4 Million Donation From Cryptocurrency Billionaire Pardoned by Trump
Justice Secretary Tightens Early Release Scheme to Exclude Manslaughter Offenders
Kemi Badenoch Reshuffles Conservative Team as Reform UK Pressure Grows
British Mortgage Rates Rise as Global Bond Sell-Off Pushes Up Borrowing Costs
UK Records Hottest Summer on Record in 2026
UK Government Urges Households to Stock Essential Supplies Ahead of Severe El Niño Risk
UK Prepares Targeted Sanctions Over Israeli Settlements in West Bank
Reform UK Faces Electoral and Police Scrutiny Over Foreign Donation Allegations
UK and France Expand Channel Migration Cooperation as Trade Tensions Surface
UK Marks Merchant Navy Day With Tribute to Civilian Seafarers
Burnham Pays Tribute to Two Police Officers Killed on Duty in Northern England
Booking.com Left Fake Downing Street Listing Online for Two Months, Which Says
Burnham and Macron to Review UK-France Cooperation on Channel Crossings
UK Business Confidence Improves Slightly but Investment Concerns Persist
Burnham Faces Pressure Over Future North Sea Oil and Gas Licences
Burnham Pushes Wider English Devolution Through ‘Number Ten North’
British Chambers of Commerce Raises 2026 UK Growth Forecast to 1%
Keir Starmer Resigns as Holborn and St Pancras MP, Triggering By-Election
UK Chancellor Faces Tighter Budget Headroom as Long-Term Borrowing Costs Rise
UK Government Weighs Thames Water Nationalisation as Financial Crisis Deepens
Prime Minister Andy Burnham Faces First Commons Questions Over Tax and Spending Plans
×