Since the announcement yesterday, there\’s been a number of articles, posts, and opinions on this topic. An article of my own will be coming, but until then, some quick thoughts:
- There are credible comparisons showing #Uber Freight\’s US rates up to 15% higher than contract/negotiated/broker rates.
- Uber claims there\’s a #drivershortage. Not true, it\’s a shortage of QUALIFIED drivers. Rideshare and other gig platforms solved this by allowing customers to rate their the person delivering their service. #UberFreight won\’t. My guess is there isn\’t enough QUALIFIED drivers to meet projected demand, and they want to float bottom of the barrel carriers with rates higher than they deserve, when brokers would weed these out. Because supply/demand has to balance for the service to be viable.
- The platform will be limited in its ability to handle higher-complexity freight.
Shippers won\’t use it if they don\’t see these 3 things: value, need, and ease of use/sustainability. Uber have a recognized brand, lots of eyeballs, and there is huge market potential for service automated #3PL services like this. The general consensus among #freightbrokers (from what I\’ve seen online), is we provide valuable service by managing complexities, transactions, relationships, regulations, and the hassles that come with. Much like insurance, real estate, contractors, etc, etc…
Is there a market for Uber Freight and like services? Yes. Can #brokers compete and win? Absolutely.
Give #Bullwhip a call if you need a professional handling your freight needs!