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Aug 6, 2016

TRUCKING "UBER" * USA: May not be accurate

* Wiscosin - "Uber for trucking" this description may in fact be a misnomer

--- With the ostensible proliferation of new players on the trucking scene that say they are essentially an Uber for trucking, it turns out that this description may in fact be a misnomer, according to a recent report issued by supply chain consultancy Armstrong & Associates... In its report, which is comprised of feedback from 27 companies providing Uber for Trucking services, Armstrong explained that “Digital Freight Matching” (DFM) reflects these types of services far more accurately... Armstrong said that the reason for this, outlined in the report entitled “Digital Freight Matching-Capturing Technology-Based Efficiencies in the Trucking Industry" is that “DFM companies" use digital platforms to match a Shipper’s freight with available Carrier capacity. The goal is to better utilize motor carrier capacity by offering a convenient digital app to connect shippers and carriers” ... What’s more, Armstrong makes a strong case for this thesis with strong supporting data in that: global investment in on-demand digital technologies hit a record $18 billion in 2015 and estimates of empty miles between 10-23 percent as e-commerce fulfillment costs continue to head up... “Shippers, in our view, are simply not going to turn over a $250,000 load to a company that has technology, but little knowledge or experience in the highly nuanced world of freight transportation,” he noted. “Instead, the larger, better capitalized brokers will incrementally move us in the direction of more automated brokerage by rolling out automated modules that will gradually make brokerage less people intensive. Shippers will undoubtedly experience less heartburn with this approach” ... 
 West Allis, WIS, USALogistic Management, by Jeff Berman - August 2, 2016

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