As reported by Transport Topics today, In a case of David purchasing Goliath, Uber Technologies Inc.’s freight business is acquiring logistics technology firm Transplace from TPG Capital for $2.25 billion, the company announced July 22. Transplace ranks No. 13 on the Transport Topics list of the Top 50 largest logistics companies, while Uber Freight is No. 41.
The company said the transaction to acquire Transplace from the private equity firm would accelerate Uber Freight’s path to profitability. Uber forecasts the
combination will propel its Uber Freight segment to break even on profit by the end of 2022. The transaction will be paid in $750 million in parent company Uber’s common stock and the remainder in cash, according to the company.
Uber Freight was initially launched in 2017 and is the company’s digitally enabled trucking platform that has operated heavily in Texas in recent years.
“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,” Transplace CEO Frank McGuigan said in a statement. “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 transaction will give shippers using the Uber Freight platform access to even more technological solutions and allow carriers to communicate freely with shippers across more modes of transportation, according to Uber. It will also expand Uber Freight’s business into Mexico
We’re not at all surprised by this reported transaction and expect to see more mergers in the near future in an attempt to shore up capacity across the Truckload and LTL sector.
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