It seems that we have applied the on-demand business model to almost anything we could lay our eyes upon – cab bookings, doctor appointments, movie tickets, home services, food delivery – the list is endless.
The latest addition to the on-demand economy are the Uber for trucking companies. You can simply use a mobile app to get access to trucks and drivers who help you to move your stuff. The service is also available for enterprises who can increase the efficiency of their supply chain and cut down logistics costs.
The global logistics industry is poised to reach $12,256 billion by 2022 with a CAGR of 3.48%. Various on-demand trucking platforms like Uber Freight are looking to tap into the industry and get a share of the market. Today we will explore the top Uber for trucking companies from all around the world.
How Uber for Trucks Business Model Works?
An on-demand trucking business works almost on the same principle of an on-demand ride-hailing app. Shippers and companies use a mobile app/web interface to locate and book trucks and vans according to their requirements. Carriers/vehicle owners/drivers receive bookings through their app/web interface and send quotes/accept bookings at upfront rates or via freight bidding marketplace model.
The shipper pays the trucker after the delivery is successful. The on-demand trucking companies generally collect a share from the payments for acting as the digital matchmaker.
Uber Freight is a hassle-free way for shippers to transport their load using the fleet of Uber trucks. Companies can book freight delivery using the app with access to transparent pricing and quick payments. The system matches shippers to carriers intelligently and can settle on a quote based on market conditions and other factors. The app allows tracking of the delivery process from loading to delivery.
Founded – 2017
Founders – Travis Kalanick and Garrett Camp
Headquarters – San Francisco, California, United States
Recent Update – The company introduced a feature through which shippers can get access to real-time market rates for delivery routes up to two weeks ahead. The feature is really helpful for companies and distributors who have to deliver large amounts of cargo.
Convoy provides the technology to bring efficiency to the supply chain industry. It aims to reduce waste by filling every truck and trailer to its full capacity. The Uber for trucking app uses intuitive algorithms to create smart routes which result in fuel savings. Convoy offers both hauling and shipping services.
Founded – 2015
Founders – Dan Lewis and Grant Goodale
Headquarters – Seattle, Washington, United States
Recent Update – In September, the company raised a round of $185 million in funding from Alphabet, the parent company of Google. It has also raised investments from Amazon founder Jeff Bezos and Bill Gates. Convoy is now placed at a valuation of $1 billion.
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