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The Uberization of the economy, and indeed logistics market at large, was driven largely by the success of Uber.
Its model is one everyone wants to replicate, and for good reason; the company is expanding itself well fast in the taxi industry, and has launched its “Uber Freight”, reinventing the logistics of the transportation industry by eliminating the middle man broker.This launch into the logistics industry isn’t new; indeed, logistic based apps have seen great profit in China, for example, where the company Huochebang (“Truck Gangs”) raised around $115 million after a financing round valued the startup at $1 billion.
The market giant Amazon is also setting its sights on the 800-billion-dollar logistics industry.Thus, we can draw the conclusion that mobile apps targeted at the logistics industry represent a niche in the market.
A mobile app for logistics has the potential to make the industry more efficient by matching consumer demand for packaging services directly with source, and further cuts out the middle man “third party broker” who can charge up to a 30% commission for their services.This optimizes the associated cost and time taken to deliver and receive packages.
And why shouldn’t Uber’s on demand model be replicated for logistics?
Drivers, truckers, and carriers move up to 80% of the total freight in the US, with the logistics industry’s gross revenue exceeding $700 billion, and yet, local industries are hindered by the inefficient business model whereby the repositioning of empty containers costs nearly the same as moving a full one.Thus, a transportation app styled after Uber’s supply meet demand model eliminates the need for a middle man between shippers and truckers, and further establishes a direct line between truckers and those who need their services.Take Transmission, for example.