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The Future of Freights

Posted by on Aug 6, 2017

Many of us are familiar with the new ridesharing sensation that is Uber. This has lead to many similar services for other things, like grocery shopping and even dining out. The world is practically begging for expansion in this industry, where services can be obtained through the literal push of a button, and taxi and delivery drivers are feeling the sting. According to an article in The Atlantic, Uber is adding one more market to the list as they take on the trucking industry before self-driving trucks can take those jobs first. The development of this new app, called “Uber Freight” is meant to connect truck drivers to those seeking them. 

Freight factoring has been around for quite some time now, but Uber seems like the next logical company to take on the task. This is a business to business prospect, unlike Uber’s ridesharing model, so many people are speculating how well Uber will pick up the new dynamics. Many truckers are self-employed or are members of small companies, and the industry already has a status quo, so to speak. Unlike in ridesharing, Uber will not be able to bring more drivers into the market, and it’s unlikely that the dynamics will change with their presence. 

Uber’s attempt to join this industry is a thinly-veiled attempt to make up for their financially detrimental year. Drivers and riders alike have joined voices to express their distaste with the company’s culture, which is both sexist and often dangerous, which led to a decrease in patrons. There were investigations against the company that cost them serious amounts of money. Uber is now trying to make up for this and make a more positive splash in the trucking industry. They plan to start in Texas, where the industry is extremely active, and they hope to work with self-driving trucks. The “Golden Triangle” of Dallas, Houston, and San Antonio could present them with an excellent opportunity, where they say they’ll create openings for diverse businesses. The company hopes to take at least 10% of the country’s freight business and increase satisfaction with freight factoring from all angles by streamlining and improving the payment process.

Uber continues to face the backlash from amidst their ridesharing community, and they hope to rebrand using the trucking industry. However, it does seem to be of great importance to them that they keep their name and give it a more positive environment instead of starting from scratch. These careful considerations before launch have proven their dedication to this rebranding attempt, but the industry is extremely close-knit, and it will be difficult for the company to break through. Their chances would perhaps be better if they simply focused on improving their current product. They have a long road ahead of them, and it’ll be something to watch—wheather they can stick it out in the trucking industry or they need to go back to ridesharing.

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