Executive Briefings

Could Apps 'Uberize' Motor Freight, Cut Out Transportation Brokers?

As most of us know, Uber is a technology platform that connects driver-partners with riders through a smartphone app. So the somewhat logical next step might be to "Uberize" the motor carrier industry, as it fits the profile very well.

Although the majority of U.S. freight moves via truck, the market is very fragmented. In fact, many companies (especially small to medium-sized ones) use transportation brokers who charge up to a 20 percent commission to line up a carrier.

There is now a rush to develop Uber-like apps to cut out the middleman (or in some cases, make their job easier) in freight movement. The apps could “lower expenses, improve visibility across a company’s entire supply chain, and most importantly, prevent trucks from having to move while empty,” according to one industry observer.

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Although the majority of U.S. freight moves via truck, the market is very fragmented. In fact, many companies (especially small to medium-sized ones) use transportation brokers who charge up to a 20 percent commission to line up a carrier.

There is now a rush to develop Uber-like apps to cut out the middleman (or in some cases, make their job easier) in freight movement. The apps could “lower expenses, improve visibility across a company’s entire supply chain, and most importantly, prevent trucks from having to move while empty,” according to one industry observer.

Read Full Article