Uber’s trucking unit, Uber Freight, has inked a $2.25 billion deal to acquire transportation logistics company Transplace from TPG Capital. The deal includes $750 million in Uber common stock and the remainder in cash. Transplace was acquired by TPG Capital in 2017.
“This is a significant step forward, not just for Uber Freight, but for the entire logistics ecosystem,” Lior Ron, head of Uber Freight, said in a press release. “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.”
The combined company will be among the leading logistics tech platforms, offering one of the most extensive worldwide transportation and logistics networks.
“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,” said Frank McGuigan, CEO of Transplace. “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,” McGuigan added.
With TPG Capital — the private-equity platform of alternative asset firm TPG — Transplace put money into technology and aimed to offer customizable solutions for managing supply chains.
“Our partnership with Transplace is a strong example of TPG Capital’s strategy to identify industry-leading tech-enabled services companies and invest behind them to drive sustained growth,” said Jack Daly, partner at TPG Capital and chairman of Transplace, and Alex Minasian, principal at TPG Capital.
Uber Freight last October notched $500 million in a Series A preferred stock financing deal at a $3.3 billion valuation, led by Greenbriar Equity Group. Uber will retain its majority ownership in Uber Freight.
Launched three years ago, the Uber Freight app links truck drivers with shippers and last year had close to 65,000 carriers in its network.