Uber And Its Role In The Future Of Logistics

Uber And Its Role In The Future Of Logistics

A successful company separates itself from the rest, by its ability to see beyond what they are doing today and look forward towards what they should be doing tomorrow. It is the case of Uber right now that after becoming world-known and popular as everyone’s go-to app for personal transportation, it has set its sights onto a more ambitious project and began to set its firm foot on logistics.

Uber began doing something simple enough. Allowing people who wanted to make extra income and those who were unhappy with the service provided by taxis to help each other out. The app worked as a platform that brought both of these groups of people together and provided them a service that could benefit both parties and thus Uber was born. The concept of sharing rides or utilizing the services of someone who is not a taxi driver became key to the evolution of Uber and disrupted an industry that is trying to combat Uber all over the world.

What is amazing about Uber is that hasn’t stopped there and it continues to adapt to the needs of the market by finding ways to bring their operation to other markets that may benefit from on-demand transportation. People tend to compare what is happening with Uber to what occurred with Amazon a few years back. The online retail giant began as an online bookstore but saw great promise in working with superior logistics and realized that it could branch off to providing different goods and look what is has become today, one of the most successful organizations in the world. Uber’s story seems to be following the same steps by venturing off to new waters utilizing the experience it has gained with their services as needed by customers.

Uber’s story seems to be following the same steps by venturing off to new waters utilizing the experience it has gained with their services as needed by customers.

Uber Freight comes as an alternative for small companies and truck drivers to manage their business and grow their financial activity. The service works no different than the Uber we are used to when we need to catch a cab, but in this instance you can send a shipment or if you are a truck driver, you can accept taking a load from point A to point B, eliminating most of the guesswork that comes along with hauling freight.

One of the most attractive aspects of Uber Freight is the fact that truck drivers receive their payments in just a few days, as opposing to regular means that make truckers wait up to 30 days to see their money for a completed and satisfactory trip.

If you think about it, the strategy is genius because it addresses some of the concerns of both drivers and shippers when it comes to finding alternatives that fit the size of their company as well as their individual operational needs.

Uber is once again finding a way to level the playing field between drivers and shippers by removing freight brokers that have been operating as intermediaries in these types of transactions. However, there are still some truckers who prefer to continue using a middleman in their transactions to avoid flat fees and to better tailor their services to the needs of the customers and be able to make the most out of each job available. Uber is by no means the only company doing this or some sort of variation of the whole equation, but they are nonetheless the most famous company doing it and have been bringing a lot of light into the business by making us wonder who else can the logistics market be changed.

Image courtesy of 500photos.com at Pexels.com

Just recently Uber purchased Otto, a self-driving truck company, a move that clearly shows that the company has set it sights in much more than simply transportation in a bigger scale. While fully autonomous vehicles aren’t here to stay yet, we can pretty much guess that whenever it happens, companies like Uber are already prepared to embrace the change.

The advent of driverless-hauling is a big step for the world of logistics because it can greatly reduce concerns with safety in human-operated machines and also it ensures that transportation machinery can be utilized around the clock without having to jeopardize the well-being of operators or the cargo itself. This enhanced effectiveness in operations and reduction of liability in situations of risk is what companies always search for when it comes to profitability.

Some skeptics believe that breaking into an industry such as transportation takes a lot more than having the right equipment to enhance the experience and believe that perhaps Uber is trying to bite more than it can chew, but we think that only time will tell how things will go. However, history will show us that technology has its way and that resistance to change is simply one more symptom of the inevitable evolution of businesses.

If you want to read more great articles, we invite you to check out our publications at David Kiger’s Blog.

* Featured Image courtesy of freestocks.org at Pexels.com

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