Trucking Market Currently
Uber, a taxi hailing application, throughout the times of its operations has topped the on-request taxi business as well as turn into a pioneer for the on-request applications. Roused by Uber’s plan of action which is flawlessly amalgamated with front-line tech, entrepreneurs and substantial scale businesses have begun to put into this model for various businesses. A noteworthy industry that has acknowledged the Uber for X idea is the Uber for Trucks/Uber for Movers business.
Right now, most market players, for example, Uber cargo, Cargomatic, Doft, Goshare, Convoy and Lugg have a tendency to be little in contrast with residential transportation administration pioneers C.H.Robinson, Hub Group, XPO Logistics, Coyote Logistics, and TQL—each of which has over $2 billion in income in the $62 billion local transportation administration showcase fragment.
According to ATA Freight Transportation Forecast 2017, an estimated 2.3% growth rate with regards to freight volumes in 2017 was seen and upto a 3.4% annual growth rate till 2023 is expected.The report further emphasizes that scalability will be a problem in this industry for the players working on the conventional offline trucking model.
Some of the other major problems currently faced with offline trucking:-
- Drivers drive empty trucks to pick up loads they get paid for only half their journey.
- Furthermore, drivers never know clearly when they would get their earnings. It could be within a week or a month, basically, varies for each trip or the broker-driver engagement.
- Many companies still rely on physical documentation for their logistics(also, largely managed by the brokers), costing valuable time and money.
- Efficient load utilization for each truck type.
- Efficient fleet utilization and management for the Operators or Trucking companies.
Uber for trucks – Business & Market potential
800 billion USD is what the transportation industry in the USA was last valued at, of which gross freight revenue from primary shipments exceeded 726 billion USD.
In China, the Uber for Trucks market has picked up well and is gaining some decent traction.Currently, Huochebang and Yunmanman, the two largest technology players in the Chinese trucking market are together estimated at 5 trillion yuan ($753 billion).
In an article written by Jeff Burman –
Evan Armstrong, President of third-party logistics provider (3PL) analyst firm Armstrong & Associates, mentions
“Digital freight matching apps have tallied approximately $300 million in venture capital and private equity funding. Investors seem to buy the pitch that these companies are truly unique and will disrupt the transportation marketplace like Uber has with its ride-hailing app.”
It is clear from the over that Uber for trucks and partner application plans of action are the reasonable future for the trucking industry.Truck drivers and shippers through this model, are quickly associated with each other sparing time and money.Furthermore, drivers can see their profit reports, application commissions, singular appraisals et cetera from the application itself.