May 17, 2020

UPS: Strengthening its logistics network in Europe

Logistics
Warehousing
Technology
Georgia Wilson
2 min
concept design for new facility
UPS announces a US$173mn expansion of itssuper hub in Hannover-Langenhagen, its largest investment outside of the United States.

Dating back to 1976, U...

UPS announces a US$173mn expansion of its super hub in Hannover-Langenhagen, its largest investment outside of the United States.

Dating back to 1976, UPS has been operating in Germany - its first international market outside of North America - which today, has 86 operating facilities in the region.

The new facility in Hannover-Langenhagen comes as part of the company’s multi-year European investment plan to modernise and expand the UPS network in the region.

What will feature in UPS’s super hub?

  • 500 new jobs 

  • Doubled sorting capacity and facility to 30,000 packages per hour

  • Total area of 24,000 square meters

  • Fleet electrification provisions and the use of renewable energy for its facilities and electric vehicles - supporting its global sustainability goals

The first phase - which will be completed by 2021 - will involve the construction of a new building next to the existing facility. Once complete the second phase will involve the demolition of the existing facility which will then be replaced with a new building.

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Once fully completed in 2023 the hub will be an important link in UPS’s European and German network, offering improved access to its smart global logistics network for its customers.  

“Logistics is one of the most important economic sectors and largest employers in Lower Saxony,” said Dr. Bernd Althusmann, Lower Saxony’s minister for Economic Affairs, Labour, Transport and Digitalization. “Langenhagen and Hannover are located in the middle of Germany and in the heart of Europe – a potential from which the logistics sector can profit like hardly any other location. The expansion of this UPS branch is thus a commitment to the business location of the Hannover region and at the same time a door opener for the export activities of local companies.”

For more information on procurement, supply chain and logistics topics - please take a look at the latest edition of Supply Chain Digital magazine.

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Jul 22, 2021

Uber Freight to Acquire Transplace in $2.2bn Deal

UberFreight
Logistics
supplychain
Acquisition
2 min
Uber Freight’s acquisition of Transplace will supercharge parent Uber’s move into logistics and supply chain

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.
 

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