Uber Freight, the rideshare company’s freight unit, said Thursday it’s acquiring Transplace, a leading transportation 3PL, in a deal that values Transplace at $2.25 billion.
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| The combination will allow carriers to communicate freely with shippers across more modes of transportation, Uber said. |
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Uber Freight will acquire Transplace from TPG Capital, a private equity company that acquired Transplace in 2017.
Uber spun off Uber Freight as a separate company in 2018. In the past October, it took an investment in the business of $500 million from Greenbriar Equit Group that valued the business at $3.3 billion.
Uber maintained a majority ownership of the new company.
Transplace has long provided electronic brokerage of mostly truckload freight moves, with thousands of carriers and shippers using its platform.
On an interview on CNBC on the news, Uber Freight chief Lior Ron said that the deal is a continuation of the company’s long-term vision, which is to bring digital transformation to the industry.
Uber Freight to date has been mostly about matching shippers with local capacity though a mobile app.
Uber Freight says it has over 70,000 carriers on its platform. It had revenues in Q1 of $301 million, up 51% year over year.
The combination could allow Uber’s trucking division reach profitability. The company said Uber Freight may now break even on an adjusted EBITDA basis by the end of 2022.
Uber Freight’s brokerage will continue to operate independently from Transplace’s services, the company said.
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Transplace CEO Frank McGuigan said as a result, the combined company expects shippers will see greater efficiency and transparency. “All in all, we expect to significantly reduce shipper and carrier empty miles to the benefit of highway and road infrastructures and the environment,” he said.
The combination will allow carriers to communicate freely with shippers across more modes of transportation, Uber said.
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