Trucking News: Uber Freight To Buy Out Transplace For $2.25 Billion

[Mike]

With the addition of the freight base that Transplace has, Uber Freight just rose way up the ranks of brokerages, and I assume will be making a whole lot more freight available via their app. Uber Freight is purchasing Transplace from TPG Capital, a private equity firm. The purchase, which was announced today, is expected to speed up Uber Freight's path to profitability.

According to reports, the purchase is being made via mostly cash, in addition to approximately $750 Million in company stock.

According to Reuters, Transplace on its website says it counts 62,000 unique users and has $11 billion of freight under management. Transplace is projected to post EBITDA of more than $100 million this year, Uber said in an investor presentation. It did not disclose Transplace's revenue but said the company reported a compound annual revenue growth rate of 15% since 2017.

 

[Sinister]

Didn't Transplace used to be JB Hunt?

Pretty sure it was when I was dispatching.

In the olden days...

 

[Mike]

Didn't Transplace used to be JB Hunt?

Pretty sure it was when I was dispatching.

In the olden days...

Transplace was founded by JB Hunt, US Express, Covenant, and Swift. Went to a different private investment company back during my Quality Carriers days, so before 2010.

 

[Mike]

Transplace was founded by JB Hunt, US Express, Covenant, and Swift. Went to a different private investment company back during my Quality Carriers days, so before 2010.

Wow, I got the names right.

Private investment firm acquires Transplace

Transplace, a third-party logistics (3PL) and management services firm, has been acquired by CI Capital Partners LLC, a New York- based private investment firm. Transplace had...

www.fleetowner.com

Private investment firm acquires Transplace​

Dec 22nd, 2009
Transplace, a third-party logistics (3PL) and management services firm, has been acquired by CI Capital Partners LLC, a New York- based private investment firm. Transplace had been owned in part by founding partners J.B. Hunt Transport Services, Swift Transportation, U.S. Xpress Enterprises and Covenant Transportation Group, Inc

 

[Mike]

Just a hunch, but I think the investment firm seen the writing on the wall and turned this venture before it started crumbling, if it hadn't already started.

A few of the Transplace brokers were really hounding me with freight. You know, the types that "want to build a relationship", which really means they want you to feel obligated to haul freight cheaper for them. That never panned out.

Any time I have attempted to deal with Transplace, they are always trying to move freight at dirt cheap rates. they can have the same load as either CRST or JB Hunt, and both of these will be significantly higher on what they are willing to pay than Transplace.

You can only struggle to move freight for so long, particularly in the current market, until your contracts start moving to other people who can get the freight moved.

Transplace has nothing current in terms of load boards you can get freight off of, and those who are going to succeed have already moved in that direction.

 

[Sinister]

Even in the early 2000s when I dispatched Transplacw was a last resort broker to use to move a truck.

Pathetic rates even back then.

 

[Mike]

Even in the early 2000s when I dispatched Transplacw was a last resort broker to use to move a truck.

Pathetic rates even back then.

Last rate they shut me down on was Joplin, MO to Goodyear, AZ.

They and CRST had the same dog food load. I hit Transplace, since their office was local to me, for $3000. They were trying to move it for $2100. Wouldn't go above $2400

I had hauled the same load a couple weeks before for CRST for $3100, but hit them for $3200 becasue fuel costs had spiked up. They asked me to cover it for the same rate as I did previously, I said I couldn't because fuel costs had increased, and they sent me the rate con for $3200.

Same load. Same pickup and delivery time.

 

[Electric Chicken]

Leave it to a corporation to spend its way into profitability.

 

[Mike]

Leave it to a corporation to spend its way into profitability.

If any of the app based brokers are doing it right, it would probably be Uber Freight. The hard part is building the freight base.

Transplace has cross border stuff as well, and this probably opens up Uber Freight in a big way.

I know JB Hunt, and a couple others have Mexico freight you can bid on, but this definitely makes a significant growth to Uber Freight's footprint.

Normally, I am against companies buying other companies, especially those held by investment firms, but I think these guys are making a good purchase here.

 

[Mike]

More random news about Transplace and their history with JB Hunt (circa 2019). Transplace moves posts lots of freight in my area.

UPDATED: Transplace relocating NWA operations from Lowell to new $46 million building in Rogers - Talk Business & Politics

EDITOR’S NOTE: An earlier version of this story has been updated with quotes throughout. ———————– The city of Rogers is gaining a major employer. Gov. Asa Hutchinson, members of the...

talkbusiness.net