- Uber for Freight may still disrupt the land cargo shipping market, but it won't be happening anywhere near as fast as predicted, Fleet Owner reported.
- Industry expert Wallace Lau, author of the study “Uber for Trucks: Executive Analysis of North American Mobile Based Freight Brokering Market” is updating his predictions, having recognized industry delays in embracing the technology. A year ago, Lau had estimated that by 2025, the mobile freight market would grow at a compound annual growth rate of 74.65% and generate over $26 billion cumulatively.
- The difference between Uber and other freight-for-hire options lies in instant recognition of the Uber name, which could reassure drivers who are otherwise slow to embrace technology.
The Uber for Freight concept may be moving more slowly than planned, but it still has time for success.
However, with Uber's recognition factor, market presence, the company's deep pockets could carry it through the typically risky market entry period. To gain traction where others have failed to, Uber Freight may need to increase advertising, tweak its apps, or even offer early bonuses to drivers in particularly slow markets in hopes that word of mouth will make a difference in the likelihood of adoption.
For now, however, drivers remain wary. With Uber, they understand they'll be operating without a middle man, meaning that arrangements not typically shouldered will fall on them. Some may be unwilling to take on that burden.
The disparity in fees may also come into play. A more experienced company like Total Quality Logistics (TQL) already employs apps and quick payment terms, yet at a rate of 12% versus Uber's 20%. For the moment, Uber isn't earning enough business to justify that additional 8%.