Uber Freight, the logistics arm of Uber, has acquired Texas-based shipping software company Transplace from TPG Capital for USD 2.25 billion. The deal consists of USD 750 million in Uber common stock, with the remainder paid in cash. The deal remains subject to regulatory approvals and other customary closing conditions.

Uber Freight expects the acquisition to help it deploy a full-scale logistics platform and break even (on an adjusted EBITDA basis) by the end of 2022. It will also enable Uber Freight’s expansion to Mexico.

Transplace provides supply chain solutions for shipping brokers and carriers to help them plan logistics, including cross-border transportation. Its services are available across the US, Canada, and Mexico, where it currently has around 62,000 unique users and USD 11 billion of freight under management. Uber expects  Transplace’s EBITDA to stand at more than USD 100 million in 2021, noting that it posted a revenue CAGR of 15% over 2017–2020.

Uber Freight provides a mobile application that connects truck drivers with shipping companies across the US and Canada. The company operates a carrier network of 70,000, available around the clock, offering live shipment tracking and fast quote generation facilities for shippers. For carriers, it offers smart load suggestions, rating and reviews of shipping facilities, mobile proof of delivery (POD) submission, etc. The company serves both full truckload (FTL) and less-than-truckload (LTL) markets.