Uber Freight, the logistics company that emerged from Uber in 2018, acquired Transplace for around $ 2.25 billion from private equity group TPG Capital. The deal announced Thursday will involve $ 750 million in Uber shares, the remainder in cash.
The acquisition of Transplace marks an acceleration of Uber Freight’s activities, which aims to carve out market share in its existing markets and expand into Mexico. Uber Freight also sees the acquisition as a way to accelerate the company’s path to profitability and help the segment break even on an adjusted EBITDA basis by the end of 2022, according to the company.
The union will integrate one of the largest transport and logistics networks managed into the Uber Freight platform, which connects truck drivers with shippers who need to deliver goods. Uber Freight’s brokerage firm will continue to operate independently of Transplace’s services, the company said.
“This is a significant step forward, not only for Uber Freight but for the entire logistics ecosystem,” said Lior Ron, director of Uber Freight, in a statement. “This is an opportunity to bring together the best complementary technological solutions and the operational excellence of two leading companies to create a first shipper-to-carrier platform that will transform all shippers’ supply chains, offering resilience operational and reducing costs. at a time when it matters most.
Transplace CEO Frank McGuigan said that as a result, the combined company expects shippers to see greater efficiency and transparency. “Overall, we plan to significantly reduce empty kilometers from shippers and carriers to the benefit of road and highway infrastructure and the environment,” he said.
Uber Freight launched in 2017. In August 2018, it was split into a separate business unit, a move that allowed it to simultaneously gain momentum and spend more money. After Uber split, the freight company expanded. Uber Freight has redesigned its app, an improvement that included adding new navigation features to make it easier to find and filter loads to customize.
The company extends to Canada and Europe. Uber Freight has also established a headquarters in Chicago as part of its parent company’s larger plan to invest more than $ 200 million per year in the region, including hiring hundreds of workers. Uber announced in September 2019 that it would hire 2,000 new employees in the region over the next three years; most would be dedicated to Uber Freight.
Uber sold a stake in the freight sector last year when a group of investors led by New York-based investment firm Greenbriar Equity Group pledged to invest $ 500 million in equity financing Preferred Series A for the business. The deal valued the unit at $ 3.3 billion on a post-currency basis.
Uber retained a controlling stake in Uber Freight and used the funds obtained from Greenbriar to continue to develop its logistics platform, which helps truck drivers connect with shipping companies.