Delivery is the most-profitable key component within the supply chain.
As of today, 7 million drivers transport cargo with flatbed trailers, dry vans, and other lifters for millions of trucking companies in the U.S. Once Uber realized this opportunity, they thought that jumping into the freight business might be the best idea to make a profit. In 2017, Uber took its technology power and launched the Uber Freight App, which became one of the most-popular logistics platforms which help truckers get in touch with shipping companies. Uber Freight allows you to control rates and documents at the same time. It opens a different gate to the freight business, helping people who need to move cargo from A to Z all over the countries. Uber Freight impacted a giant network that connected drivers and suppliers. Truckers are the driver, and the shippers are the customers. Truckers can choose open job opportunities with all up-front prices and the shippers can rate them and write down reviews. It is a natural match.
The question is how come Uber Freight takes all the power and control of the logistics industry?
They already have market powers over the country in 48 states across the U.S. Additionally, they have control over the Netherlands and Germany markets on the European side. The statistics show more than half of truckers use the app to get connections to this growing demand. The trucking industry is worth billion dollars in the world and this kind of technological steps are the biggest opportunities. It is described as a win-win relationship for drivers and shippers. Drivers can easily find a job and get paid back quickly while the customer can get their cargo delivered without any problems.
The COVID-19 pandemic increased and added some valuable power to the freight business over the past year.
Uber Freight took this advantage and upgraded the app to give better service to users. As we know, the app gets cargo done faster than before and it looks like a shining idea. Then, Uber noticed they were missing some local truckers – traditional drivers – who might not be able to use smartphones or technological stuff like the App. There are still lots of challenges.
Uber Freight offers transparency and consistent earnings. But on the other hand, it might be not the best idea for some truckers in a long term. It looks like Uber could not be able to analyze this part of the market which might affect them. Looking through the numbers over a year, Uber Freight is still not a profitable company. The pandemic might give a large opportunity to Uber Freight to make a profit, but it shows that technical issues might cause them a lot of losses over a long period.