Logistics spotlight: who is Agility?
Founded in 1979, Agility started its journey as a local wareh...
Supply Chain Digital takes a closer look at global logistics and freight company Agility.
Founded in 1979, Agility started its journey as a local warehousing provider in Kuwait. Today, Agility is one of the largest global integrated logistics providers in the Middle East.
Agility has six core freight and logistics (3PL) services that it provides, including:
Air freight cargo services
Sea and ocean freight
Supply chain solutions
System and technologies
Agility, “works hard to keep supply chains green and fair”, the company has reduced its greenhouse gas emissions by 23% since 2011, with 50% of its employees working in sites covered by ISO 14001 for environment management and is ranked among the top 4% of industries for environmental performance by Ecovadis.
Key figures from Agility’s Q3 2019 earnings report:
Revenue - US$1.32bn (1.6% increase over the same period in 2018)
Net profit - US$71mn (8.4% increase over the same period in 2018)
“Our Infrastructure portfolio of companies drove our results in the third quarter, with all major entities seeing growth. Our Global Integrated Logistics (GIL) business, on the other hand, was affected by challenging market conditions that have affected the industry as a whole. However, GIL is moving forward aggressively with its digitisation agenda to improve operational efficiency and drive a better customer experience,” commented Tarek Sultan, Agility Vice Chairman and CEO.
Reflecting on the company's future, Sultan stated that Agility will “continue to invest in technology-driven change and seek to be the digital leaders in our industry. Our Agility Ventures team is partnering with innovative start-ups that are re-shaping the supply chain in areas ranging from green technologies to e-commerce. We are also accelerating in-house development, acquisitions, and partnerships to grow our digital logistics platform, Shipa. We believe this is the key to differentiating Agility and positioning us for future growth.”
Did you know? Agility is also one of the largest private owners and developers of industrial real estate in the Middle East and North Africa.
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Uber Freight to Acquire Transplace in $2.2bn Deal
Uber Freight is to acquire logistics technology and solutions provider Transplace in a deal worth $2.25bn.
The company will pay up to $750m in common stock and the remainder in cash to TPG Capital, Transplace’s private equity owner, pending regulatory approval and closing conditions.
“This is a significant step forward, not just for Uber Freight but for the entire logistics ecosystem,” said Lior Ron, Head of Uber Freight, and former founder of the Uber-owned trucking start-up Otto.
Uber’s Big Play for Supply Chain
Transplace is one of the world's largest managed transportation and logistics networks, with 62,000 unique users on its platform and $11bn in freight under management. It offers truck brokerage and other capacity solutions, end-to-end visibility on cross border shipments, and a suite of digital solutions and consultancy services.
The purchase is the latest move by parent company Uber, which launched as a San Francisco cab-hailing app in 2011, to diversify its offering and create new revenue streams in all transport segments.
Transplace said the takeover comes amid a period of “accelerated transformation in logistics”, where globalisation, shipping and transport disruption, and widespread volatility are colliding.
Uber Freight plans to integrate the Transplace network into its own platform, which connects shippers and carriers in a dashboard that mirroring the intuitive experience found in its consumer vehicle booking and food ordering services.
“This is an opportunity to bring together complementary best-in-class technology solutions and operational excellence from two premier companies to create an industry-first shipper-to-carrier platform that will transform shippers’ entire supply chains, delivering operational resilience and reducing costs at a time when it matters most,” said Ron.
Frank McGuigan, CEO of Transplace, said the resulting merger will offer enhanced efficiency and transparency for shippers, and benefits of scale for carriers. “All in all, we expect to significantly reduce shipper and carrier empty miles to the benefit of highway and road infrastructures and the environment,” he added.
History of Uber Freight
Uber Freight was established in 2017 and separated into its own business unit the following year. In 2019 the company had expanded across the entire continental US, established a headquarters in Chicago. Later that year it launched its first international division in Europe, initially from a regional foothold in the Nertherlands, and later moving into Germany.
The logistics spinoff attracted a $500m investment from New York-based Greenbriar Equity Group in October 2020, and launched a new shipping platform for companies of all sizes in May, partly in response to a driver shortage in Canada.