Posted on September 10, 2019
Everyone knows about Uber and how it has transformed the Taxi business. Now Uber Freight is on the rise and is about to transform the transportation business. Think of it as Uber, but for Truck Drivers. Although that may not sound ideal, there is an increasing problem in the supply chain industry, the problem being driver shortage.
Driver shortage is starting to significantly impact our economy in a subtle yet harmful way. It has caused inflation in our economy to the point where it has disrupted many companies' earnings per share. In Corporate America, if you look at our economy over the past few decades, every factor of costs has gone down; productions costs, labor costs, etc. However, logistics costs and transportation costs has risen because not very many kids now a days are waking up saying, “When I grow up, I want to be a truck driver.”
The more basic a necessity is, the higher the transportation cost for that necessity. For example, the food and water we consume is expensive to actually transport. Something as simple as a bottle of soda that we buy in the store today, 20-30% of the total cost associated to that bottle will be to pay for the logistics cost to the consumer. This percantage eats away at profit when the transportation costs rise.
Uber Freight has decided to push the Logistics Industry into a streamlined technologically advanced format, creating an easier experience for owner-operators and fleets to book loads faster, cutting out the costs of paying broker fees, as well as minimizing the number of empty miles that trucks endure in order to find loads. 20% of the miles that a truck runs in service are empty miles, meaning they have no cargo on board. That’s money wasted, with no profit. With FMCSA (Federal Motor Carrier Safety Administration) requiring electronic logging and cutting back on the hours of service drivers can drive, it seemed only a matter of time that the technology to benefit the driver would soon come to be.
When the driver downloads the app, he/she will setup their profile. The driver will have to provide their registration, insurance, DOT#, etc. Uber performs an extensive safety check on the driver prior to being approved to work for Uber Freight. But just as with Uber, you’re paid right through the app. They can select the type of distance they prefer to travel, whether they prefer over the road or home every night. All their delivery documents are stored right in the app for access at any time. When a driver picks up and tenders a load to locations, the sites can go on and rate their service as well as leave comments, helping them establish their company profile. It also empowers drivers to increase their footprint and become a fleet, meet and hire other drivers, add trucks to their company, and grow their small business.
Uber has also done what no other GPS System has really been able to provide: a Truck Routing Software based off the vehicle in your company profile. This means no more driving on roads that the truck is too overweight for or driving on a road with a bridge height too low for the truck. This will save gas, time, and money.
Uber Freight is not only limited to owner-operators or fleets, carriers and shippers are able to use the app as well. They too are feeling the impact of driver shortage when it comes to in-house hiring.
Innovation in the logistics industry is nothing but beneficial all around, as it accounts for 6% of our nations GPD and without transportation, our world will literally come to a halt.
Contributor: Christyn Hamel
About Allyn International
Allyn International is dedicated to providing high quality, customer centric services and solutions for the global marketplace. Allyn's core products include transportation management, logistics sourcing, freight forwarding, supply chain consulting, tax management and global trade compliance. Allyn clients range from small local businesses to Fortune 500 firms. Allyn conducts business in more than 20 languages and has extensive experience in both developed and emerging markets. Highly trained experts are positioned throughout North and South America, Europe and Asia. Allyn’s regional headquarters are strategically located in Fort Myers, Florida, U.S.A., Shanghai, P.R. China, Prague, Czech Republic, and Dubai, U.A.E. For more information, visit www.allynintl.com.