Uber Technologies Inc announced Thursday that its trucking unit is buying transportation logistics company Transplace for about $2.25 billion from private equity firm TPG Capital. The acquisition includes up to $750 million in Uber common stock and the remainder in cash, Uber said in a statement.
“This transaction is expected to accelerate Uber Freight’s path to profitability and help the segment to break even on an adjusted EBITDA basis by the end of 2022,” Uber said.
Founded in 2000, the Frisco, Texas-based company is a non-asset-based provider offering manufacturers, retailers, chemical and consumer packaged goods companies the optimal blend of logistics technology and transportation management services.
Uber launched Uber Freight in 2017 as an app for long-haul trucking jobs. The service connects truck drivers with shippers, much, in the same way, the company’s ride-hailing app pairs drivers with those looking for a ride.
Meanwhile, this is one of the many acquisitions by Uber as the ride-hailing company tries to stay afloat and return to profitability. As we reported early this year, Uber entered into the alcohol delivery business this February with the acquisition of Boston, MA-based alcohol-delivery service startup Drizly for $1.1 billion.
Following the completion of the transaction, Uber said Drizly’s marketplace will be integrated with the Uber Eats app. As part of the acquisition, Uber will also keep the standalone Drizly app.
Below is a video overview of how Uber Freight works.