Uber Freight announced July 22 that it is acquiring Transplace for approximately $2.25 billion, saying the move will create one of the leading logistics technology platforms, with one of the largest and most comprehensive managed transportation and logistics networks in the world. This “combined freight technology operating system,” said the announcement, will “enable a comprehensive end-to-end shipper-to-carrier solution.”
Carriers will have the ability to collaborate directly with shippers within a seamless marketplace as well as access high-quality freight across multiple expanded service lines, including intermodal, cross border and less-than-truckload. (Earlier this month, Uber Freight announced it is expanding into the LTL market.)
The acquisition comes at a time of accelerated transformation in logistics. The demands of a volatile market and the increasing complexity of globalized logistics are clashing with industrial-age transportation technology. In the midst of capacity constraints and escalating transportation costs, shippers are adapting their operations at an increasing pace and looking for technology, support, and solutions that can modernize their supply chain and keep critical goods moving.
“This is a significant step forward, not just for Uber Freight but for the entire logistics ecosystem,” said Lior Ron, head of Uber Freight. “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.”
Frank McGuigan, CEO of Transplace, predicts that combining the two companies’ complementary platforms will benefit both carriers and shippers.
“Our expectation is that shippers will see greater efficiency and transparency and carriers will benefit from the scale to drive improved operating ratios,” he said in an announcement. “All in all, we expect to significantly reduce shipper and carrier empty miles to the benefit of highway and road infrastructures and the environment.”
Uber Freight’s brokerage will continue to operate independently from Transplace’s managed transportation services.
Uber Freight will acquire Transplace from TPG Capital, the private equity platform of alternative asset firm TPG. Transplace was acquired by TPG Capital in 2017. The transaction is subject to regulatory approval and other customary closing conditions.