The deal, which Uber announced on Thursday, comprises of up to $750 million in Uber common stock and the rest in cash.
Uber Freight connects truckers and shippers, acting as a middleman in the fragmented long-haul shipping industry. Transplace manages supply chains and logistics, including cross-border shipments, in collaboration with shipping brokers and carriers.
The deal is a shift from Uber’s recent strategy of selling capital-intensive operations like its self-driving and flying taxi divisions in order to reach long-elusive profitability.
Instead, the company has doubled down on its pandemic-winning food-delivery service Uber Eats by acquiring competitor start-up Postmates and last-mile alcohol delivery business Drizly.
Uber is also extending its grocery delivery service, establishing a collaboration with Albertsons Companies Inc (ACI.N) and Costco Wholesale Corp. this week (COST.O).
The Transplace acquisition will give Uber’s trucking subsidiary more clout at a time when the logistics industry is undergoing rapid transition, the ride-hailing company said in a statement.
“This deal is projected to help Uber Freight break even on an adjusted EBITDA basis by the end of 2022,” Uber added.
According to Transplace’s website, it has 62,000 unique users and manages $11 billion in freight.
Uber said in an investor presentation that Transplace is expected to generate EBITDA of more than $100 million this year. Transplace’s revenue was not disclosed, however, the company reported a compound annual sales growth rate of 15% since 2017.
Uber is also extending its grocery delivery service, establishing a collaboration with Albertsons Companies Inc (ACI.N) and Costco Wholesale Corp. this week (COST.O).
The Transplace acquisition will give Uber’s trucking subsidiary more clout at a time when the logistics industry is undergoing rapid transition, the ride-hailing company said in a statement.
“This deal is projected to help Uber Freight break even on an adjusted EBITDA basis by the end of 2022,” Uber added.
According to Transplace’s website, it has 62,000 unique users and manages $11 billion in freight.
Uber said in an investor presentation that Transplace is expected to generate EBITDA of more than $100 million this year. Transplace’s revenue was not disclosed, however, the company reported a compound annual sales growth rate of 15% since 2017.
