Uber to buy transportation logistics company Transplace in $2.25 billion deal

FAN Editor

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 around 1% in premarket trading.

Uber Freight will acquire Transplace from TPG Capital, the private equity platform of alternative asset firm TPG. 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 Postmates.

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.

Uber is a six-time CNBC Disruptor 50 company. Sign up for our weekly, original newsletter that offers a closer look at CNBC Disruptor 50 companies like Uber, before they go public.

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