We recently came across a news that Amazon is planning to build ‘Uber for trucking app’. The news took the entire transportation and app industry by storm.
Amazon has plans to launch the app somewhere in the summer of 2017. Well’ it isn’t just the Amazon coming with the concept, the commuting giant Uber is also planning to land into the trucking business after getting an enormous success with its taxi app development.
A deeper look into the trucking business
Trucking in last six decades has changed steadily. The two major changes that we can recall comprise Interstate highway system and deregulation through the introduction of Federal Aid Highway Act of 1956 and Motor Carrier Act which pushed the trucking prices down by 50%-75%.
The changes while on one hand portray the sturdy rise of transportation and logistics business, but if we look at the Uber’s progress on it, we have figures narrating an entirely different saga.
Uber’s Track Record
- Somewhere in January 2015, the company launched its Uber Cargo program, however, things didn’t work the way they were supposed to and they had to end the operations.
- Another Uber operation named, ‘UberRUSH’ designed to deliver parcel delivery services is going through serious competition from postmates.
- Having its deep pockets with the likes of Tencent, Apple, and Alibaba, Didi Chuxing well showcased its expertise and infallibility of Uber by beating it in the Chinese market.
Read Also: Roadmap to Uber like Taxi App Development
We can’t disregard these points
Uber recently took over the self-driving truck startup company Otto for $680 million. The intention behind is clear; the company is focused on changing and ruling the evolving market of transportation and logistics business.
While on another hand, a few years back, somewhere in 2012 Amazon acquired the Kiva Systems for $775 million.
What’s the entire race about?
The ‘Uber for Trucking’ concept is about relishing most out of the growing transportation and logistics operations to add capacity beyond the existing providers and avail 3PL special services to third parties.
The primary focus is on removing the third-party brokers between the truckers and the shippers who wish to move their freight. This will directly leave an impact on the monetary expenses, as the 15% commission taken by these brokers will no longer exist.
Now, the race is about who captures the market first. While both of them aren’t entirely new to the business, they do have experience of walking over the similar boulevard of the industry.
The potential disruption
With Both Amazon and Uber having a subsequent impact on the brokerage market, it is expected that there will be a certain disruption in the market. Another reason behind is that both the companies are considered as sound competitors, and none of them will compromise with the goals and standards.
It isn’t like that only these two companies are working on the future of transportation and logistics business. The industry is gaining eyeballs of numerous other houses, and it is expected that in coming days, the way logistics used to work will change drastically. We can safely expect this disruption to come a little faster than the industry evolved in last few years.
Uber for trucking will add not only to ease in workflow but will also save time and money for numerous commuters. However, the only thing as of now to be focused upon is that who takeovers the market and who’ll find newer ways to get ahead of the leader. Whichever way it goes, there are two things for sure to come; evolution and disruption.