Uber Freight Gets a $2.25 Billion Upgrade After Acquiring a New Software Managing Company
Uber Freight, Uber’s rideshare trucking branch, revealed on Thursday that it will pay $2.25 billion for Transplace, a shipping software startup.
Uber Freight is a separate company of Uber that provides supply chain software tools and has over 70,000 carriers. In the first quarter of this year, it made $301 million in revenue.
The transaction will be made up of $750 million in Uber stock and the remainder in cash. Transplace, situated in Texas, will be purchased by Uber from TPG Capital, which has owned it since 2017.
Uber experimented with various revenue streams, including its self-driving unit and flying taxi section, but ultimately decided to sell these services in 2020 after failing to meet profit targets.
With its recent purchases of alcohol delivery startup Drizly and other food delivery business Postmates, the rideshare service has proven that it is focused more on Uber Eats.
Transplace claims to be one of the major software platforms for managing supply chains to send goods, in addition to its freight service.
Transplace claims on its website that it “powers one of the world’s largest managed transportation and logistics networks with over $11 billion in Freight Under Management (FUM) and 62,000 unique users.”
Uber Freight has grown in the last year, but it still only makes up a small portion of Uber’s overall earnings.