July 22 (UPI) -- Uber's trucking division announced on Thursday that it's buying a key tech competitor in the logistics field.
Uber Freight will acquire Transplace from TPG Capital for $2.25 billion, $750 million of which is in stock.
The purchase is expected to make Uber Freight a profitable venture that could break even by next year.
Uber Freight CEO Lior Ron heralded the acquisition as a game-changer.
"This is a significant step forward, not just for Uber Freight but for the entire logistics ecosystem," Ron said in a statement.
Ron said the two companies will "create an industry-first shipper-to-carrier platform" that will transform shippers' supply chains and reduce costs at a time "when it matters most."
"Our expectation is that shippers will see greater efficiency and transparency and carriers will benefit from the scale to drive improved operating ratios," Transplace CEO Frank McGuigan said in a statement.
"All in all, we expect to significantly reduce shipper and carrier empty miles to the benefit of highway and road infrastructures and the environment."
Uber Freight launched in 2018 in Arizona, where it began testing self-driving trucks.