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The uberization of trucks, or consolidation of goods, refers to the use of application-based technologies to use the empty space of trucks, to make the most of the empty space of trucks. These apps are similar to Uber because they connect those who need to move goods with those who can move them. Instead of an Uber picking up a drunk person at the bar, it’s a truck picking up an orange shipping container. Passengers may be different, but the idea is the same.
Truckers often drive to their destinations with plenty of space. Uberization of trucks is a way to increase efficiency and solve overcapacity problems. New apps like Uber Freight, Convoy or Doft let truck drivers know if someone is willing to pay them to transport goods using their extra free space. The submission can only sign in to the app and enter the shipping details, such as what, where, and when. From there, drivers can view the job posting in their app, along with the paid offer, and can book the job directly from their phones.
The truck transport sector is currently very obsolete. It is an industry where people have traditionally been called upon to schedule pickups and fax procedures to arrange and confirm shipments. But all that is about to change. Innovative technology is a nearly $ 700 billion industry that creates devices ranging from communications to autonomous cars to virtual reality and artificial intelligence. Technology has the ability to propel the truck industry forward.
Related: how this company is altering the truck industry
Advantages of uberization
The uberization of the truck industry is advantageous, because it has the potential to allow more shippers to take advantage of direct shipping rates to truckers. The uberization of the truck industry will work to connect loaders and drivers quickly and efficiently.
Another advantage of using Uber-esque apps is that they run even after normal business hours. Bill Driegert, senior director of Uber Freight explains, “You have a real network 24 hours a day, 7 days a week; it doesn’t just work the same schedule as a runner, which means you have more options.”
Using these applications would also avoid empty loads. Making sure trucks are full with each load is a good way to reduce costs. The needs of shippers are also quickly addressed by giving them a way to ship their goods in an efficient and cost effective manner. Apps are a great way to update and revitalize the entire shipping process.
Other ways in which uberization is advantageous include real-time tracking, dynamic scheduling, and transparent pricing. The advantage of having chargers match drivers quickly, especially when chargers can also be tracked online and track their deliveries, cannot be overstated.
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Challenges of uberization
Risks are bound to occur with any business model. When it comes to trucks, some of these obstacles include the transportation of perishable goods in a timely manner, as well as the ability to comply with the health codes of different industries. Shippers may also require more flexibility in pick-up windows and back costs.
Another challenge that may arise is that different goods — such as food, vehicles, or electronics — require specific types of carriers. When a carrier needs a special truck, the number of available drivers may decrease. This may also be the case for shipments of food or other products with an expiration date. Freight applications can combat this particular hurdle, because the applications are designed for instant gratification. The use of freight transport technology will generate shorter waiting times.
It can also be difficult to establish trust between chargers and drivers quickly; this is something that needs time to build. But both loaders and truckers will be able to build trust with the apps and be sure they are getting the best service and deals possible.
Related: 7 steps to start a transport and logistics business
The future of startups in the uberization of trucking
The future of truck uberization is closer than people think. Large companies are already beginning to make the transition to this market. Amazon is currently developing an app that would make recommendations for truck stops and include pick-up and drop-off options for payment and order tracking. And as a company that inspired the term “uberization,” Uber leads this position by acquiring Otto, a technology startup that specializes in trucks and transportation.
There are currently 27 emerging technology companies that aim to match truckers with shipping charges. According to Armstrong & Associates, these startups have raised $ 180 million in combined support in the last five years alone. There is a market available for commodity-based applications and it is growing exponentially.
The uberization of trucks is the new frontier. The innovative solution increases efficiency, reduces costs, creates a network of drivers and chargers and even saves paper! The best way to help alleviate the burden of the supply chain crisis is to create and foster business connections in the industry. There is room for everyone to help each other, and freight apps give companies a chance to do just that.