Uber’s trucking division has reached an agreement to acquire transportation logistics firm Transplace for roughly $2.25 billion, the ride-sharing company announced Thursday.
Uber Freight unveiled the move in a press release, explaining that the deal will “create one of the leading logistics technology platforms, with one of the largest and most comprehensive managed transportation and logistics networks in the world.”
The ride-sharing company is acquiring Transplace from TPG Capital, the alternative asset firm that took it over in 2017.
The Uber acquisition deal contains up to $750 million in common stock of Uber Freight’s parent company, Uber Technologies, Inc., according to the announcement.
“The acquisition comes at a time of accelerated transformation in logistics,” Uber Freight and Transplace said in their press release. “The demands of a volatile market and the increasing complexity of globalized logistics are clashing with industrial-age transportation technology.”
“In the midst of capacity constraints and escalating transportation costs, shippers are adapting their operations at an increasing pace and looking for technology, support, and solutions that can modernize their supply chain and keep critical goods, and the economy, moving,” they added.
Lior Ron, the head of Uber Freight, said in a statement that the deal marks “a significant step forward, not just for Uber Freight but for the entire logistics ecosystem.”
“This is an opportunity to bring together complementary best-in-class technology solutions and operational excellence from two premier companies to create an industry-first shipper-to-carrier platform that will transform shippers’ entire supply chains, delivering operational resilience and reducing costs at a time when it matters most,” Ron said.
Meanwhile, Transplace CEO Frank McGuigan said the deal “will combine the world’s premier shipper network platform with one of the industry’s most innovative supply platforms, to the benefit of all stakeholders.”
“Our expectation is that shippers will see greater efficiency and transparency and carriers will benefit from the scale to drive improved operating ratios,” McGuigan explained.
He added that Uber Freights and Transplace working together will be able to “significantly reduce shipper and carrier empty miles to the benefit of highway and road infrastructures and the environment.”
The deal, which is still subject to regulatory approval and other customary closing conditions, could help Uber Freight break even on an adjusted EBITDA basis by the end of 2022, the company said Thursday.
In December, Uber announced that it was selling its self-driving unit to autonomous vehicle startup Aurora while investing $400 million in the company.