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Uber’s trucking unit to buy Transplace for $2.25 billion

(Reuters) -Uber Technologies Inc’s trucking business is buying transportation logistics company Transplace for about $2.25 billion from private equity firm TPG Capital, in a deal that is expected to speed up the unit’s path to profitability.

The acquisition, announced by Uber on Thursday, consists of up to $750 million in the company’s common stock and the remainder in cash.

It marks a departure from Uber’s strategy in recent years of selling capital-intensive businesses, such as its self-driving and flying taxi units, to achieve long-elusive profitability.

The company instead has doubled down on its food-delivery service Uber Eats, which has been a pandemic winner, by acquiring rival start-up Postmates and last-mile alcohol delivery company Drizly. (https://reut.rs/2UEP1m3)

The Transplace deal will put weight behind Uber Freight – the trucking unit – at a time of accelerated transformation in logistics, the ride-hailing 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.

Uber Freight operates as a middle man in the fragmented long-haul trucking business, connecting truckers with shippers.

(Reporting by Tiyashi Datta and Subrat Patnaik in Bengaluru; Editing by Aditya Soni)

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