Tag: Trucking Trends

Is It a Match for the Industry and Uber-Like Freight Handling?

Is It a Match for the Industry and Uber-Like Freight Handling?
Is It a Match for the Industry and Uber-Like Freight Handling?

Uber has given a whole new look to personal transportation and food delivery services. Can it do the same for the trucking industry? The answer is not as simple as it may seem.

Trucking Industry Slow to Adapt to New Technology

In 2016 Wallace Lau, industry principal at consulting firm Frost & Sullivan, authored a study called, “Uber for Trucks: Executive Analysis of North American Mobile Based Freight Brokering Market.” Based on $100 million in current revenue, Lau projected an increase to $26.40 billion by 2025.

But today Lau says that adoption of the Uber model is moving more slowly than anticipated due to resistance by the trucking industry. Lau’s updated study is expected to be released this coming fall.

According to Lau, people in the trucking industry are uncertain about whether the Uber model will actually benefit them. Many are reluctant to deviate from their established routines working with traditional freight brokers.

Uber Throws Its Hat into the Ring

All this may be about to change with Uber’s introduction of its own freight app this past May. While there are already several mobile-based freight apps on the market, Lau believes that Uber’s name and reputation will cause the industry to take a closer look at this trend.

Bill Driegert, director of Uber Freight, says their app turns a cumbersome, labor-intensive process into a single click. It also offers transparency for both shipper and receiver.

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What’s Shaping the Trucking Industry’s Future?

Caravan of white trucks on highway
Trucking Industry

The trucking industry in the United States is more than a century old, yet it continues to change along with the times. Here are some of the major trends that will impact the future of transportation in 2017.

1. More Productive Vendor Relationships

As trucking companies continue to deal with labor shortages and other obstacles, they will rely increasingly on trusted vendors for advice and solutions. Thanks to a varied customer base, vendors get a broad view of the industry and you can benefit from their greater perspective.

2. Greater Integration of Technology

Improving efficiency and profitability is a permanent goal of all trucking companies. GPS and other sophisticated technology provide a valuable advantage in cost-effective measures such as mapping the best routes and planning optimum truckloads.

3. Self-Driving Vehicles

Automation took a huge step forward last year as a San Francisco startup owned by Uber made a delivery of beer to Colorado using a self-driving truck. Odds are slim that the trucking industry will become completely automated, but it’s another new technology that you should evaluate for possible benefits to your company.

4. Changing Regulations

The government is also adapting to the ever-shifting landscape of the transportation industry. Regulations are created, changed and discarded in order to cover worker safety, environmental issues and other pressing concerns, and you can’t afford to fall behind.

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