Transportation giant Uber acquired logistics service Transplace for approximately $ 2.25 billion to vigorously promote its trucking business, with the intention of turning its Uber Freight division into a leading freight organization and tracking company.
Uber Freight said it reached an agreement to acquire Transplace in Frisco, Texas, with cash and $ 750 million in Uber stock from private equity firm TPG Capital. Assuming the transaction is approved by regulatory authorities, the company expects the transaction to create one of the largest technology platforms for carriers to manage the flow of goods.
“This is an opportunity to combine first-class complementary technology solutions and operational excellence from two world-class companies to create the industry’s first carrier-to-carrier platform, which will transform the entire supply chain of carriers. operational flexibility and reducing costs when it matters, “Uber’s director of freight Lior Ron said in a statement.
Freight transport and logistics continue to be a booming industry, and the demand for faster deliveries of goods by retailers and consumers appears to be growing. According to estimates by the American Trucking Association, trucking is a huge business, with total revenues of US $ 791.7 billion in 2019. This has pushed technology companies into the freight business, among the including manufacturers of software and services that book and manage freight transport, and autonomous truck developers. Uber abandoned its autonomous truck program three years ago, but continued to establish an Uber freight company that contracted with freight services. Frank McGuigan, CEO of
Transplace, said in a statement: “Our expectation is that carriers will see greater efficiency and transparency, and carriers will benefit from scale to drive higher operating rates.” The mileage of senders and carriers will be significantly reduced, which will benefit the roads, road infrastructure and the environment ”.
Uber reported in May that Uber Freight revenue increased 51% in the first quarter of 2021, reaching US $ 301 million, it is the third largest source of sales after delivery and transportation services. On Thursday, 4,444 Uber shares rose less than 1% on the New York Stock Exchange to close at $47.57.

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