The combination will create a combined freight technology operating system for offering a broad end-to-end shipper-to-carrier solution
Transplace to be acquired by Uber Freight in a cash-cum-stock deal. (Credit: Uber Technologies Inc.)
Uber Freight, the trucking division of Uber Technologies, has agreed to acquire logistics technology and solutions provider Transplace for about $2.25bn.
Transplace is being acquired from TPG Capital in a cash-cum-stock deal. TPG Capital had purchased the firm in 2017.
The consideration is made up of $750m worth of shares in Uber Technologies and the balance amount in cash.
Transplace is said to have one of the world’s largest managed transportation and logistics network. The company has more than $11bn of freight under management (FUM) and has 62,000 unique users on its tech-enabled solutions platform.
According to Uber Technologies, the acquisition will enable it to form a combined freight technology operating system for offering a broad end-to-end shipper-to-carrier solution.
Transplace’s combination with Uber Freight will streamline the movement of freight in the entire marketplace, and provide shippers with best-in-class services, said Uber Technologies. Besides, the combination will help carriers in unlocking opportunities.
Furthermore, the huge network of digitally-enabled carriers of Uber Freight combined with Transplace’s shipper technology and operational solutions will result in a fully-scaled logistics platform.
Uber Technologies said that the resulting platform can meet both shippers and carriers where they are, irrespective of their business sizes or their transportation requirements.
Uber Freight head Lior Ron said: “This is 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.”
Uber Freight’s brokerage will continue its operations independently from the managed transportation services of Transplace for ensuring the highest-quality service for shippers, said Uber Technologies.
Transplace CEO Frank McGuigan said: “The acquisition 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. All in all, we expect to significantly reduce shipper and carrier empty miles to the benefit of highway and road infrastructures and the environment.”
The deal is subject to regulatory approval and other customary closing conditions.
Earlier this year, Uber Technologies signed a deal worth about $1.1bn to acquire US-based alcohol-delivery service Drizly.