Uber Technologies subsidiary, Uber Freight, has completed the acquisition of Transplace from TPG Capital for approx. $2.25 billion USD in an all-cash transaction.
As partial financing for this transaction, Abu Dhabi Growth Fund (ADG), D1 Capital, and GCM Grosvenor invested $550 million USD in Uber Freight.
The transaction brings together Uber Freight’s vast network of digitally-enabled carriers with Transplace’s trusted shipper technology and operational solutions, ultimately creating one of the world’s leading logistics technology platforms to meet the rapidly evolving needs of shippers and carriers alike.
“Logistics is going through a historic transformation,” said Uber Freight Head, Lior Ron.
“Unprecedented volatility, increasing supply chain complexities, and escalating shipping costs are driving shippers to modernise their supply chains with new technologies.
“By acquiring Transplace, we’re able to accelerate our vision for a seamless freight ecosystem and create the world’s first true freight operating system. Combining the leading shipper network and the largest digital network of carriers will enable us to immediately unlock new opportunities and efficiencies for everyone in the value chain — shippers, carriers, and ultimately society at large.”
Transplace CEO, Frank McGuigan said: “Today it is more essential than ever to bring shipper and carrier networks closer together through a fully connected and transparent logistics ecosystem that addresses the evolving supply chain needs of all stakeholders. The acquisition marks a turning point in the industry and a new era of delivering trusted outcomes by coupling best-in-class logistics platforms and managed services with the world’s premier shipper and carrier networks to dramatically increase value for customers.”
The partnership will unlock deep efficiencies and insights across $16 billion USD of Freight Under Management (FUM) and help reduce transportation costs, improve service, automate processes and streamline the execution of freight for shippers of all sizes. The combined networks of Uber Freight and Transplace will also form the world’s largest network of digitally-enabled carriers with a combined reach of 135,000 high quality carriers operating across an expanded set of services throughout North America and Europe, including intermodal, cross border, expedited, and more.