China Yields Great Turnover in Convertible Business

Trucking is the primary freight transportation method in most of the countries, and many companies are seeking to disrupt the industry. Uber has already mastered the people and food around cities. The “Uber for trucking” is a model that connects truckers with consumers through digital applications. Uber’s acquisition named Otto, a self-driving trucking company that Uber bought for sixty-five million dollars. Its main focus is to build self-driving truck kits that equipment manufacturers or freight networks could buy and install on their own.

Even though Uber started with the announcement of the self-driving trucks, they always intend to build a marketplace that would allow self-driving trucks to flourish. If Uber Freight is successful at the making the “Uber for Trucking” it could serve as a gateway into autonomous vehicles. The carriers and shippers who sign up for Uber Freight will be the first customers for the Otto self-driving Kit. The approach is similar to how Uber is planning on integrating its self-driving cars into the Uber Network. The self-driving vehicles won’t be the substitutes for human drivers in all situations. They simply be part of the marketplace as they come online.

The Importance of Truck Transport in China:

Trucking remains primary means of ferrying goods across in China. Most of the trucks carry more than eighty percent of the goods delivered in China. At the same time, the logistics sector was valued nearly two trillion dollars in the year 2013, the trucking industry remained fragmented and inefficient. The trucks stand empty forty percent of the time. An Uber-type service for trucks in China is known as Huochebang. The Huochebang manages about one lakh orders daily through its thousand service centers located throughout the country. It competes against two hundred rival applications trying to minimize the amount of time that cargo-haulers stand empty.

It also processes one hundred and twenty million dollars in shipping fees each day. Even though it bears the “Uber for Trucks”, Huochebang does not make money the same way Uber does. Instead, the company derives its profit from selling a range of services to truckers that include toll cards and help with financing. The company is also a rising star in the investment world. It just raised one hundred and fifteen million from a group of investors. This new influx of funds gives the company a valuation of one dollar billion making it a unicorn. 

Tencent, one of the earliest investors is confident about the prospects of integrating the logistics industry with the internet. It also remains the largest shareholder at Huchochebang. The “truck gangs” wants to match the country’s twenty million trucks with commodities in need of transport, vacant parking lots and service centers it operates.

The Importance of Truck Transport in U.S:

Several companies in the U.S are competing for the title “Uber for Trucks”. Some of the popular companies are Uber Freight, Cargomatic, and Convoy. GoShare, an initial startup focused on local moving and delivery, is also trying its level best to touch the peak level.

Uber Freight:

The Uber Freight marketplace has soft-launched and it is working with a handful of shippers and carriers. Uber has also launched a website recently for this service. It functions like the existing platform connecting companies that need to ship items with drivers willing to haul them. Eventually, the Uber Freight team also wants to manage other heritage products in the industry.

Cargomatic:

Cargomatic is a California company that utilizes the Uber model and has its own app to connect shippers with drivers. It works with several companies like Perry Ellis to offer lower-priced local shipments. Presently, the company operates in Los Angeles, New York, and San Francisco and it is expected to cross the U.S. and internationally.

Convoy:

Convoy, a Seattle-based startup is one of the services that connect shippers and carriers directly using a mobile app. It tends to build the world’s largest network of trucks, with good capacity and the ability to track GPS on all shipments.

GoShare:

GoShare, a long-haul logistics company follows the Uber model in that it matches customers wanting to move something such as couch with drivers who have trucks. Currently, the company serves a few cities in California, New Jersey and the city of Atlanta.

According to the Survey:

The report says that the china’s trucking industry generates more than ninety dollars billion in annual revenue. And more than ninety percent of the freight trucks in China are owned by the individuals, presenting an opportunity for services that can connect the individuals to shippers in need of transportation help.

The startup has a unique revenue model and it doesn’t charge a fee for trucks booked through its site. Instead, the company sells toll passes to its truck drivers and takes a cut when the truckers top-up their cards. It also provides loan financing for its truckers. Many companies like Amazon and Uber have launched applications to connect companies expecting to move goods with truckers.

The supply chain and logistics operation have become important for a wide range of companies looking to deliver goods faster to enhance their operational costs and improve customer satisfaction. The trucking industry plays a vital role in the supply chain and logistics, many of the companies will look at trucking as a key area where they can gain new efficiencies.

The BI intelligence estimates that two percent of consumers living in cities where same-day delivery is offered have used such services. In future, nearly hundred million dollars worth of merchandise will be delivered through same day fulfillment in twenty US cities. The consumer’s expectations in same-day delivery are fairly high. The four in ten US shoppers have exclaimed that they would use same-day delivery if they don’t have time to go to the shop and one in for shoppers said they would consider discarding an online shopping cart if same-day delivery was not an option.

The most common same-day delivery shopper fits a specific profile. The products people want delivered same-day are also fairly slotted. Despite all the competition in the same-day delivery market, it will be uncomfortable for the folks to pay for these services. About ninety-two percent of the consumers have said that they can wait for four days or longer for their e-commerce packages to arrive.

The report uncovers the demographics of same-day delivery customers, the markets where the services have the best chance of taking off and assesses how each of the many same-day delivery competitors compares to others. It also looks at the technology that really could make getting a package delivery to their home after they order it a common phenomenon.

A detailed report:

In full, the report estimates that the market for same-day delivery from the year 2013 to 2018, including the percentage of people who will use these services and the total sales volume. It lays out how the different same-day delivery services mountains up against each other in terms of prices, location etc. The most important factor is that it considers the barriers that could keep same-day delivery from ever becoming a most important option among the customers. It also identifies the technology that could make same-day delivery cost-effective and reliable one.