Transplace

Transplace, now an integral part of Uber Freight, operates as a non-asset-based third-party logistics (3PL) provider, specializing in logistics technology and transportation management services. The company was established in 2000 through the strategic merger of the logistics units of six major U.S. truckload carriers: Covenant Transport, J.B. Hunt Transport Services, M.S. Carriers, Swift Transportation, U.S. Xpress Enterprises, and Werner Enterprises. This consolidation was aimed at creating a unified, web-based marketplace for freight transport. Jun-Sheng Li, who was also the president of J.B. Hunt Logistics, was the initial chairman, president, and CEO of the new entity, Transplace.com. In 2003, Tom Sanderson, an executive with extensive experience in the logistics and technology sectors, joined as CEO to turn the company around. Sanderson, who previously ran his own software company and held leadership roles at J.B. Hunt and Sabre Holdings, was instrumental in the company's growth, leading it through a private equity-backed purchase from its founders in 2009. Frank McGuigan, who became CEO in 2018 after Sanderson transitioned to executive chairman, joined Transplace in 2011 when his firm, SCO Logistics, was acquired.

The firm's business model is centered on providing managed transportation services through a proprietary, internally developed transportation management system (TMS). This recurring revenue business primarily operates under multi-year contracts with a diverse client base that includes manufacturers, retailers, and companies in the chemical and consumer packaged goods sectors. Transplace offers a comprehensive suite of services, including supply chain consulting, intermodal and truck brokerage, cross-border trade services, and SaaS-based TMS solutions. By managing freight transportation for its clients, the company helps optimize supply chain operations and improve financial performance. Revenue is generated by managing its clients' transportation needs, leveraging its technology and network to ensure efficiency and value.

In a significant milestone, Uber Freight announced its acquisition of Transplace from TPG Capital in July 2021 for approximately $2.25 billion, a deal that was completed in November 2021. This acquisition was a strategic move to combine Uber Freight’s extensive, digitally-enabled carrier network with Transplace's established shipper technology and operational solutions. The merger created one of the world's largest logistics technology platforms, combining Transplace's $11 billion of Freight Under Management (FUM) with Uber Freight’s network to form a combined reach of 135,000 carriers. The goal was to establish a comprehensive freight operating system that delivers operational resilience, reduces transportation costs, and automates processes for shippers and carriers of all sizes.

Keywords: transportation management, logistics technology, third-party logistics, 3PL, freight brokerage, supply chain management, managed transportation, freight under management, Uber Freight, cross-border logistics, intermodal transport, shipper solutions, carrier network, transportation management system, TMS, supply chain consulting, logistics outsourcing, freight optimization, North American logistics, truckload carriers