The trucking industry is constantly changing. It has to keep up with outside factors to stay up-to-date. Amazon and Uber are businesses changing the way freight is moved. Both companies are in the process of launching programs to connect businesses with freight to move and truck drivers. Keep reading to learn about the threats of Uber Freight and Amazon and how the trucking industry is responding.
Uber Freight works similarly to Uber’s passenger ride-sharing service except it uses trucks and freight instead of cars and people. Shippers and carriers visit Uber Freight’s website and enter their email to get started shipping or hauling freight.
In July 2016, Uber bought self-driving trucking company, Otto, for $650 million. Otto was always about reinventing transportation, and becoming part of Uber accelerated its growth. Uber Freight eliminates the middleman and offers real-time pricing for shippers. Since Uber acquired Otto, experts suspect they will move into autonomous trucking services in the near future.
Amazon, the world’s largest online retailer, has recently ventured into the freight industry. Its freight service is similar to Uber Freight. It also aims to cut out the middleman and use an app to match shipments with trucks. The e-commerce giant hopes to become its own freight broker and compete with other companies in the industry.
Amazon is starting this service with their current customers before expanding to the broader B2B shipping area.
What About Third-Party Logistics Providers?
Experts predict long-term freight volumes won’t be affected by Amazon and Uber, but they may take spot market freight that doesn’t require any special service away from brokers and third-party logistics providers. 3PLs keep a steady stream of shipments flowing to carriers instead of having sporadic shipments from Amazon or Uber.
3PLs work with their carrier networks to reduce empty miles and drive down costs. They have technology available to them to create shipping efficiencies – something Uber and Amazon aren’t currently offering.
3PL providers also act as a freight advocate for the shipper and carrier to make sure the freight gets to where it needs to be when it needs to be there.
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