Uber Freight: What is it And is it a Threat to The Industry?

Posted by J.Jordan

What is Uber Freight?

Uber freight is a smart phone App that allows independent truckers and van drives to connect with shippers and freight forwarders. The shippers will advertise loads for sale and the hauliers will accept the loads depending on stand and end location, size/weight and price. Uber brought self driving haulage company Otto for  $650 million with plans to launch Uber Freight.

When was Uber Freight Launched?

Uber freight was launched in May 2017 after Uber had successfully stormed the people transport marketing with their “Taxi” like services, driven by independent drivers.

Is it Threat to The Logistics Industry?

Uber freight came with a variety of opinions, some believing that it will change the way road freight works forever. Some people believe that Uber freight will fade out. I feel that Apps like Uber freight and Courier Exchange helps small-to-medium sized freight forwarders and shippers. This is because you can transport smaller, “one-off” loads cheaper using a self driving van or truck then it is to buy or hire your own van/truck and driver.

The drawbacks to these Apps are that you are putting your customers freight and your companies reputation into the hands of an independent driver who may not be as experienced or customers facing as your own team. Another risk of using self-employed drivers is the documentation of background checks, valid licence checks and criminal records. Not being able to see this documents first and can be a problem for some freight forwarders.

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