How Uber for Trucking will Transform the Logistics Industry in 2020

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Written By Larious

Larious is the Executive Editor of LowkeyTech. He is a tech enthusiast and a content writer. 





Last Updated on May 21, 2020 by Larious

Uber For” is revolutionizing the different industries by catering to the on-demand needs of the category and the different niches. For instance, Uber for food has now resulted in on-demand food that you can call for at any time, and track till it arrives at your doorstep.

Uber for” or on-demand has revolutionized the food, grocery, laundry, medical, salons, and other industries. It has even hit the job industries such as carpentry, plumbing, and others, making it more like a marketplace for the people who want to avail the service and the sellers who are providing these services.

The only difference between a regular marketplace and Uber for X is that the latter offers on-demand services, and caters to immediate needs expressed by the people.

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While this model has transformed the taxi service industry, it is all set to redefine the trucking and logistics industry.

What is Uber for Trucking, and how did it originate?

There are several companies that are working on this model, and each one has been enhancing the model of their own accord.

  • The trucking industry is huge, and most of the contractors in the trucking industry are dependent on the truck brokers. What are truck brokers? They match the truckers with the people or businesses that need their services. Basically an offline marketplace that is gradually going online with the need of the hour
  • In 2018 alone, the trucking industry valued at $796Bn. Uber is one of the major players in the industry, specifically with logistics. The business known as Uber Freight caters to 48 U.S. states and has expanded its services to Germany and the Netherlands as well. 
  • How does the Uber Freight work? The need for a broker is not acknowledged in this system. Here, the truckers get to automatically choose from a set of jobs listed on the app, and the routes they wish to take. This way they have granted more flexibility to the truckers, and make their business easier to operate.
  • Apart from Uber, there is another company that is constantly working towards improving logistics, Transfix. 

Transfix recently raised $78Mn, and is worth around $800Mn. It is renowned as the world’s next billion-dollar startup already. Uber is a global name as it is, and has committed $200Mn towards the expansion of Uber Freight. 

Considering how these and certain other companies are moving towards logistics and expanding the business, it can be said that logistics is certainly getting a good start in the new year. 

It is not just the commitment towards expansion or the plans that will boost the year for the trucking industry; it is also about following the trends and ensuring quicker adaptation of the technology to improve what you have to attain what you have in your mind.

Here are a few trends that are sure to redefine how the logistics industry works, and how Uber for trucking will reinvent itself to transform the industry in the new year.

1. Data Analysis is a Must

We already know that trucking is a multi-billion dollar industry, and there are global players involved. In some cases, you will see that the freight is owned by the company itself.

A good example of this would be Walmart, a company that owns and runs its freight, thus managing the logistics with ease. However, what about the smaller companies that are dependent on the trucks that can move their goods around?

The Uber for Trucking needs data that is collected from the trucks and the past rides. This data will help them optimize routes, the services and even make them hassle-free. The data will provide them with instances that can help utilize the capacity better, and ensure better maintenance of the trucks.

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The Uber for Trucking will help both sides realize the number of trucks actually running, the trucks that need maintenance and the tariffs that can be offered for the particular ride.

The data will help with the real-time insights, which can eventually help the logistics provider improve their facilities and make it more empowered for both the employees and the end-users. 

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2. Accuracy in GPS

GPS is important for the Uber for the trucking industry, as the whole industry thrives on the fact that your user can track you in real-time. Apart from this, the GPS will also offer insights into when the goods will be delivered, and how. 

Businesses and other stakeholders in the logistics industries stay frustrated when they have minimal to nil visibility into the actual supply chain, specifically the logistics aspect.

Not knowing if the drivers will reach on time, unable to tell the customers where the parcel is at the moment, and other such ordeals cause issues and lead to risks in the business.

However, GPS when accurately integrated into the system can help boost the overall freight industry and its results. It will also help increase the efficiency of the supply chain, as you have good visibility into its working. 

3. IoT Combined with RFID

The Internet of Things is all set to enhance the logistics industry as well. These will record the sensors and transmit important data to the business owners.

A simple example of the same would be the quality of food inside the trucks. For instance, if your truck is carrying cold or frozen food, then the temperature within the storage needs to be maintained at a certain level. The sensors inside the truck will indicate the temperature and tell you if the goods will last till the truck reaches the destination or not.

This is just one way in which RFID combined with IoT will enable the businesses to get real-time insights. Apart from this, delivery of goods, tracking inventory and knowing if all the things have reached the destination or not is also important. That’s precisely why IoT has become important for the freight industry

4. Artificial Intelligence & Machine Learning

As we have already discussed, the new GPS comes with a feature that takes into account traffic and weather in the route to optimize it for you. This is just one example of how AI will impact the trucking industry. Apart from this, you will find applications of AI in several other places, granting numerous benefits.

Calculating the mileage and accordingly planning the trip will help estimate the time of delivery, which can enhance the satisfaction of the end customers. This can be ably done if you have AI and Machine Learning advantages in your system.

Apart from this, you can even calculate the approximate trucks required for the complete supply chain, and optimize the overall capacity accordingly. you won’t be underutilizing the capacity as a result.

The trucking industry can save a lot on maintenance costs by utilizing this technology. It allows the truckers to know when the maintenance is due, which ensures that they don’t miss out on the due maintenance of these trucks. As a result, you will find that the truck survives longer, and ages late. 

Summing Up

The trucking industry is evolving, and so is the need for good and efficient logistics. Uberization of the industry has led to an increase in effective and immediate supply for the demand.

With the amalgamation of the different technologies and richness in the offering, it will help you make quicker and real-time decisions that will enhance the experience. From reducing downtime to enhancing the maintenance aspects, the new trucking dynamics will help improve and optimize the solutions for better supply chain and distribution capabilities. 

Author Bio

Pradeep Makhija is a Digital Marketing Executive at Space-O Technologies, a mobile app development company. He likes to share his knowledge and experience with people around by writing articles related to the mobile app and the healthcare industry. In his spare time, Pradeep likes to explore and read more about the trends and needs of mobile apps in different sectors.

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