Uber Freight acquiring Transplace for $2.25 billion
Uber Freight announced last month it is acquiring Transplace for about $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,” the company said, “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,’’ the company said. 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.’’
Frank McGuigan, chief executive of Transplace, said 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,” McGuigan said. “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, a private equity firm that acquired Transplace in 2017.