London Daily

Focus on the big picture.
Saturday, Oct 31, 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
Parliamentary Petitions Committee Schedules Major Legislative Debates on Special Educational Needs and Non-Stun Meat Labelling
Regional Devolution and Good Growth Fund Frameworks Reshape Local Government Funding Across English Regions
Loughborough University Economic Analysts Highlight Substantial Uncertainty Surrounding Public Sector Efficiency Savings
British Legal Sector Drives Sixty Billion Pounds in Annual Economic Output While Employing Over Half a Million Professionals
Law Society Welcomes New Better Regulation Executive While Pressing for Long-Term Legal Aid Funding Reform
Metropolitan Police and Security Services Heighten Operations Across London Ahead of Large-Scale Public Demonstrations
Bank of England Economists Scrutinize Corporate Tax Adjustments and Public Sector Borrowing Pressures
Chancellor John Healey Defends Autumn Budget Tax and Spending Allocations Following Intense Parliamentary Scrutiny
Department for Environment, Food and Rural Affairs Implements Strict Water Quality Monitoring Rules Following Severe Rainfall and Flooding
Welsh Government Unveils Comprehensive Regional Housing Strategy to Address Rural Affordability and Homelessness Pressures in Cardiff
Office for National Statistics Reports Slowing Consumer Price Inflation and Steady Retail Performance Across United Kingdom Markets
Northern Ireland First Minister Michelle O'Neill and Deputy First Minister Emma Little-Pengelly Advance Cross-Border Infrastructure Agreement in Belfast
Competition and Markets Authority Launches Formal Investigation Into Artificial Intelligence Partnerships Involving Major Technology Corporations
Scottish First Minister John Swinney Secures Cross-Party Support for Devolved Budget Framework and Renewable Energy Expansion
High Court Rules in Favor of Environmental Campaigners Over Department for Energy Security and Net Zero Licensing Procedures
National Health Service England Announces Major Digital Modernization and Artificial Intelligence Diagnostic Rollout Across Regional Trusts
Bank of England Monetary Policy Committee Signals Cautious Approach to Interest Rate Cuts Amid Persistent Wage Growth and Inflation Pressures
British Prime Minister Keir Starmer and Chancellor Rachel Reeves Outline Strategic Infrastructure Plans to Boost Regional Growth and Private Investment
Water pollution remains high despite £5bn investment
Regional Economic Divergence and Industrial Transformation
Technological Sovereignty and Regulatory Scrutiny
Fiscal Consolidation and Public Service Pressures
Automotive Industry Leadership Warns of Imminent Supply Chain Disruptions Following Recent European Trade Negotiations
High Court Delivers Landmark Ruling Affirming Strict Legal Protections for Corporate Data Privacy Against State Surveillance
Welsh First Minister Eluned Morgan Secures Additional Funding for Regional Transport Infrastructure and Rail Modernization
Scottish First Minister John Swinney Announces Major Green Energy Infrastructure Investment Package for Aberdeen
Department for Work and Pensions Proposes Sweeping Welfare Reforms to Incentivize Long-Term Unemployed Back into Work
Competition and Markets Authority Launches Formal Investigation into Artificial Intelligence Partnerships Involving Major Tech Giants
United Kingdom Foreign Secretary David Lammy Concludes High-Level Strategic Talks in Washington on Middle East Security
National Health Service England Unveils Emergency Winter Resilience Plan to Combat Projected Surge in Emergency Admissions
Bank of England Governor Andrew Bailey Signals Cautious Approach to Interest Rate Cuts Amid Persistent Inflation
British Chancellor Rachel Reeves Finalizes Corporate Tax Overhaul Ahead of Autumn Budget to Fund Public Services
Automotive Manufacturers Urge Government Action as High Energy Costs and Global Supply Chain Disruptions Threaten Production
Metropolitan Police Issue Formal Apology Following Inadvertent Release of Confidential Information During High-Profile Investigation
Scottish Finance Secretary Shona Robison Unveils Devolved Budget Highlighting Housing and Public Service Adjustments
Energy Regulator Office of Gas and Electricity Markets Prepares to Remove Household Gas Standing Charges Following Treasury Mandate
Treasury Confirms Reversal of Planned Cash Individual Savings Account Allowance Reduction Protecting Twenty Thousand Pound Limit
Office for Budget Responsibility Revisions Predict Moderate United Kingdom Economic Growth with Elevated Inflation Pressures
Chancellor John Healey Delivers First Autumn Budget in Parliament Highlighting Temporary Bank Surcharge and Cost-of-Living Support
Met Office Issues Extended Forecast Highlighting Stable High Pressure Weather Patterns Across the United Kingdom
Scottish Finance Secretary Shona Robison Outlines Changes to Tax Thresholds and Residential Property Levies in Edinburgh
Financial Markets and Government Bond Yields Remain Stable Following Muted Reaction to Autumn Budget Measures
Defence Committee Chair Tan Dhesi Criticizes Budget for Delaying Critical Defence Spending Decisions to Next Year
International Monetary Fund Forecasts United Kingdom Economic Growth at One Point Three Percent for Year
Office for Budget Responsibility Assesses Fiscal Headroom Reduced to Fifteen Billion Pounds Following Global Energy Shocks
Chancellor John Healey Delivers First Autumn Budget Introducing Household Energy Support and Bank Tax Hikes
Aberdeen City Council Co-Leader Faces Binding Vote Challenge as Local Councillors Launch High Court Legal Battle
Housebuilding Across Scotland Falls to Eleven-Year Low Despite Government Declarations of a Housing Emergency
Former Prime Minister Gordon Brown Organizes National Innovation Summit in Manchester to Boost Regional Competitiveness
UK Government Faces Mounting Criticism Over Lack of Environmental Consultation During Artificial Intelligence Datacentre Expansion Talks
×