Uber Technologies Inc’s (NYSE: UBER) Subsidiary, Uber Freight, has announced the acquisition of TPG Capital’s Transplace at $2.25 billion in cash. GCM Grosvenor, D1 Capital, and Abu Dhabi Growth fund made a $550 million investment in Uber Freight to support the transaction.
The acquisition combines operational solutions and shipper technology from Transplace with digitally-enabled carriers from Uber Freight. The move will result in a leading logistics technology platform to cater to the requirements of carriers and shippers.
Collaboration will enable them company to resolve supply chain issues
According to the head of Uber Freight, Lior Ron, Logistics is undergoing a record-breaking transformation. Shippers are forced to improve their supply chains with new technologies as shipping costs, volatility, and supply chain complexities increase. Acquiring Transplace will allow Uber Freight to be the first freight operating system. It will also help them create opportunities for carriers and shippers in the value chain.
The CEO of Transplace, Frank McGuigan, adds that joining carrier and shipper networks via a transparent and fully connected logistics operating system which caters to the stakeholder’s changing needs is vital.
The move will open up insights and efficiencies for $16 billion of Freight Under Management (FUM). It will also streamline freight execution for shippers, automate processes, improve service, and lower transportation costs.
The acquisition will create the largest network of digital carriers
The acquisition will combine networks from both companies forming the biggest network of digitally-enabled carriers with 135,000 carriers operating in Europe and North America.
Uber Freight has been a platform focusing on reshaping worldwide logistics and delivering transparency, flexibility, and reliability for carriers and shippers since 2017. Since it began, it has created world-leading digitally-enabled carrier networks. It was also optimized book and pricing freight practices to increase collaboration and growth for businesses and minimize inefficiency. The company has a network of more than 100,000 carriers. It also supports many companies, including prominent Land O’Lakes, LG, Nestle, and AB Inbev.
Transplace operates one of the world’s largest logistic and transportation networks. Its solutions and services are supported through its team of engineers, domain experts, and data scientists. It focuses on increasing visibility and enhancing the performance of supply chains for its customers. It supports all types of businesses and offers cross-border services and logistics management.
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