An Uber freight train.
Source: Travis Kalanick | Twitter
Uber Freight, the rideshare company’s trucking division, said Thursday it is acquiring Transplace in a deal that valued the transportation logistics company at $ 2.25 billion.
Uber shares fell around 1% in pre-trading hours.
Uber Freight is taking over Transplace from TPG Capital, the private equity platform of the alternative asset company TPG. The transaction includes 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-guzzling self-driving units and the flying taxi segment. Instead, Uber has decided to invest billions in strengthening its Uber Eats segment and acquire alcohol suppliers Drizly and Postmates.
The companies said the acquisition comes at a time of accelerating transformation in logistics.
“The requirements of a volatile market and the increasing complexity of globalized logistics collide with the traffic technology of the industrial age,” says the company. “In the midst of capacity bottlenecks and rising transport costs, shippers are adapting their processes ever faster and are looking for technology, support and solutions that can modernize their supply chain and keep critical goods and the economy moving.”
The deal is set to help Uber’s truck division achieve 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.
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