An Uber Freight truck.
Source: Travis Kalanick | Twitter
Uber Freight, the rideshare company’s trucking division, said Thursday it’s acquiring Transplace in a deal that values the transportation logistics company at $2.25 billion.
Uber shares dipped slightly in premarket trading.
Uber Freight will acquire Transplace from TPG Capital, the private equity platform of alternative asset firm TPG that acquired Transplace in 2017. The deal consists of of up to $750 million in common stock of Uber and the remainder in cash.
It’s a rare move for Uber, which has spent the last year shedding its profit-eating self-driving unit and flying taxi segment. Instead, Uber has been choosing to pour billions into strengthening its Uber Eats segment, acquiring alcohol delivery company Drizly and food delivery service Postmates.
The deal, the companies said, will create one of the leading logistics technology platforms. The companies said 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,” the company said. “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, and the economy, moving.”
The deal is expected to help Uber’s trucking division reach profitability. The company said it could help the segment break even on an adjusted EBITDA basis by the end of 2022.
The deal is still subject to regulatory approval.