Uber Freight, on Thursday morning, has announced plans to acquire one of the biggest managed transportation and logistics networks in the world.
Uber Freight Acquistion
For approximately $2.25 billion, Uber Freight will acquire Transplace from TPG Capital. This is according to a July 22 announcement from the two companies. In fact, the company is going to pay out $750 million in common stock from Uber Technologies. The rest will be in cash.
In fact, the acquisition will usher in “a new era of logistics management” the company says. Moreover, with a logistics platform that will “optimize the movement of freight across the whole marketplace. Thus deliver what is calling best-in-class services to shippers, moreover, while they unlock opportunities for the carriers.”
Uber Freight: Path to Profitability
In essence, the acquisition is expected to “accelerate Uber Freight’s path to profitability.” Then, help the company to serve more customers while, in fact, expand its presence in Mexico. Moreover, by the end of 2022, the deal hoping to help Uber Freight break even on an Adjusted EBITDA.
After this acquisition, Uber Freight’s brokerage is going to operate independently from Transplace’s managed transportation services, the companies say.
“However, this is a major step forward, not just for Uber Freight. Also, for the whole logistics ecosystem,” said Lior Ron, Head of Uber Freight. “In fact, this is an opportunity to bring together supporting best-in-class technology solutions and operational excellence from two major companies to create an industry-first shipper-to-carrier platform that will transform shippers’ who supply chains, delivering operational resilience and reducing costs at a time when it means most.”
Shipper Network Platform and Supply Platform
“Moreover, the acquisition will, in fact, combine the world’s premier shipper network platform with one of the industry’s most innovative supply platforms, that will help all stakeholders,” said Frank McGuigan, CEO of Transplace. “The expectation is that shippers will see greater efficiency and transparency and carriers. They will benefit from the scale to drive improving operating ratios. All in all, we are expecting to notably be reducing shipper and carrier empty miles for the sake of highway and road infrastructures and the environment. Finally, we want to thank TPG for its partnership. We have worked together to position Transplace as a leader in supply chain innovation.”