Uber buys transportation logistics firm Transplace in a $ 2.25 billion deal
An Uber freight train.
Source: Travis Kalanick | Twitter
Uber Freight, the rideshare company’s trucking division, said Thursday it is acquiring Transplace in a deal that valued the transportation logistics company at $ 2.25 billion.
Uber shares fell slightly in pre-trading hours.
Uber Freight will acquire Transplace from TPG Capital, the private equity platform of alternative asset firm TPG, which Transplace acquired in 2017. The transaction includes up to $ 750 million in common stock of Uber and the remainder in cash.
It’s a rare move for Uber, which has spent the last year shedding its profit-guzzling self-driving units and the flying taxi segment. Instead, Uber has decided to invest billions in strengthening its Uber Eats segment by acquiring alcohol delivery service Drizly and grocery delivery service Postmates.
The deal, according to the companies, will create one of the leading logistics technology platforms. The companies said the acquisition comes at a time of accelerating transformation in logistics.
“The requirements of a volatile market and the increasing complexity of globalized logistics collide with the traffic technology of the industrial age,” says the company. “In the midst of capacity bottlenecks and rising transport costs, shippers are adapting their processes ever faster and are looking for technology, support and solutions that can modernize their supply chain and keep critical goods and the economy moving.”
The deal is set to help Uber’s truck division achieve profitability. The company said it could help the segment break even on an adjusted EBITDA basis by the end of 2022.
The deal is still subject to regulatory approval.
Uber is a six-time CNBC Disruptor 50 company. Sign up for our weekly, original newsletter that has a closer look at CNBC Disruptor 50 companies like Uber before they go public.