Uber’s trucking unit set to purchase transplace for $2.25 billion
Uber Technologies Inc’s trucking business is set to purchase Transplace, a transportation logistics company, for around $2.25 billion from private equity firm TPG Capital. The deal is expected to set it on a speedy journey towards profitability.
The American technology company announced the acquisition on Thursday. The deal consists of up to $750 million as common stock and the remainder in cash.
Uber’s acquisition depicts a shift in strategy from recent years, where the company has stuck to selling capital-intensive businesses like its self-driving and flying taxi, units, achieving profitability numbers that have eluded them for some time.
The company has doubled its efforts on Uber Eats, their food-delivery service, which saw a boom during the pandemic. It has sought to eliminate racial star-ups by acquiring companies like Postmates and alcohol delivery company Drizly.
This deal will bolster Uber’s trucking unit, Uber Freight, at a time of accelerated transformation in logistics, the company 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.