How You Can Develop Uber for Trucking

Ever since Uber became an international success, every service that deals with transportation has wanted to follow in its footsteps or even surpass it in terms of popularity. The so-called "Uberization" of the logistics industry is occurring at a rapid speed. We have already talked about which logistics mobile app development technology focuses on freight transportation. This article is going to address the inquiries of our customers who would like to create Uber for delivery trucks.

The Problem on the Logistics Market

According to the American Trucking Association, trucks move almost 80 percent of total freight in the US. At the same time, the gross revenue from freight trucking barely exceeds $700 billion annually. Local trucking industries are often inefficient and fragmented. One reason for that is empty containers, the repositioning of which is almost as costly as moving a full container.

Containers are repositioned empty because cargo cannot be found for a return leg. To move empty trucks that will not make any money on shipping, the industry has to spend on average, $16 billion per year, which accounts for 15 percent of all operational costs related to container assets. The longer the truck waits to be filled, the higher is the cost of maintaining and repositioning it.

In order to move freight, a shipping company usually needs to contact freight brokers that will connect them with a carrier. The freight broker serves as a liaison between these two parties performing a very important role in the movement of cargo. However, since shipping companies pay these brokers up to a 20 percent commission, and because the whole process is anything but transparent, middlemen might not be the best option for shipping companies in the 21st century.

The Solution for Logistics Service Providers

Much like Uber connected taxi drivers with passengers, your transportation app can bridge the gap between shippers and truckers, eliminating the need for a middleman. The service that establishes a direct connection between trucks and those who need them can certainly be dubbed an Uber for trucking.

The logistics industry would surely benefit from having a mobile transportation app serve its needs. It will help lower expenses, improve visibility across a company’s entire supply chain, and most importantly, prevent trucks from having to move while empty......

Originally: How You Can Develop Uber for Trucking

Kate Abrosimova Marketing Director at Yalantis, Cmo and co-founder at Kaiiax