Uber pays $2.25 billion for a trucking software company.
Uber announced a $2.25 billion deal on Thursday to expand its freight division by acquiring a company that specializes on logistics management software.
The firms stated in a joint statement that combining Texas-based Transplace with Uber Freight will create a massive, integrated transportation and logistics network.
Transplace CEO Frank McGuigan remarked, “The transaction will unite the world’s leading shipper network platform with one of the industry’s most creative supplier platforms.”
“We expect shippers to profit from increased efficiency and transparency, while carriers will benefit from the scale to improve operating ratios,” says the company.
In the same manner that the San Francisco-based startup uses smartphone apps to pair drivers and passengers for ride-sharing, Uber Freight connects truckers with individuals wishing to carry products.
According to quarterly financial reports, the Freight segment has been consistently rising.
“Not only for Uber Freight, but for the entire logistics ecosystem,” said unit chief Lior Ron.
The acquisition, according to Ron, would result in “an industry-first shipper-to-carrier technology that will alter shippers’ entire supply chains, delivering operational resilience and cost savings at a time when it counts most.”
According to the companies, Uber is buying Transplace from private equity company TPG Capital for $2.25 billion, with $750 million of the $2.25 billion transaction price coming in the form of Uber Technologies shares.