Uber Freight, a subsidiary of Uber Technologies Inc. (NYSE: UBER), has acquired Transplace from TPG Capital for approximately $2.25 billion in an all-cash transaction. As partial financing for this transaction, Abu Dhabi Growth Fund, D1 Capital, and GCM Grosvenor invested $550 million in Uber Freight.
“Logistics is going through a historic transformation. Unprecedented volatility, increasing supply chain complexities, and escalating shipping costs are driving shippers to modernize their supply chains with new technologies,” said Lior Ron, head of Uber Freight. “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.”
The partnership aims to unlock efficiencies and insights across $16 billion of Freight Under Management 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 carriers, according to the companies.