Uber for Trucking is a New Era Analysts Say
The newly unveiled Uber-like service for trucking, which is freight brokering via mobile devices, is set to bring a new era in the US freight logistics and trucking market, Frost & Sullivan are claiming.
They have produced a report entitled Uber for Trucks: Executive analysis of the North American Mobile-based Freight Brokerage Market. In it they claim that 16% of third party logistics transactions will take place via mobile platforms by 2025.
This will go some way to resolving the current levels of inefficiency in the logistics and freight movement market, which sees 20 billion miles wasted every year. The hope is that an Uber-type service that allows mobile-based freight brokerage will allow drivers and fleet managers to reduce levels of inefficiency within their trucking fleet. As well as lowering the amount of miles being wasted, the new technology will bring down operating costs, boost fuel efficiency, improve asset utilization and enhance overall productivity.
Wallace Lau, a senior analyst at Frost & Sullivan, claims that the North American freight trucking industry will gain the opportunity to enhance the efficiency and productivity of shippers and carriers alike by using the new mobile based technology. He also claims that platforms that are mobile-based can reduce the carbon footprint across the trucking industry as a result of the efficiency gains being provided.
Traditional means for freight brokerage still account for 99% of the market in the US despite the benefits of a mobile platform. This is because reputations and relationships are well cemented between existing operators. This fact, plus a saturated freight brokerage market, the growth of on demand delivery services, and the need for a comprehensive network of shippers and carriers, means that mass adoption is extremely difficult to achieve. Mobile based freight
brokerage companies will need to develop better strategies so that they can grow the network they want, on the basis of offering as much value as they can in the short term by way of a free offering to customers on their applications.
Added to the fact that they can strengthen their capability for freight brokering, mobile-based freight brokerage companies are also combining transportation management platforms and solutions as part of their offer, as part of the strategy to get more customers on board. The growth of mobile-based freight brokerage may be slow, but the benefits mean that it will eventually have a good market share.