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.
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