In August of 2016, Uber announced its purchase of Otto, a Silicon Valley start-up aiming at retro-fitting existing trucks in order to make them autonomous.  In this deal valued at $680 million, Uber planted their flag firmly in the sacred turf that has belonged to traditional trucking companies and third party logistic companies (3PLs).  They are currently recruiting independent owner-operators to implement their technology and build their freight matching platform known as Uber Freight.

 If you have used the traditional Uber, you already know how it stands head and shoulders above taxi service.  The cars are clean, the drivers are friendly and the fares are definitely cheaper.  Now imagine a fleet of Uber truck drivers, strategically positioned in city centers, ready to pick up your shipment on a moment’s notice.  It may play out like this: After posting a load, the traffic manager gets a message that a truck is on the way in five minutes and shows a truck icon navigating toward the shipper’s location.  A driver and company profile is within view on the app, complete with DOT authority and a certificate of insurance.  This is all speculation based on experience with how the Uber app works.

The big 3PLs do not seem to be worried yet.  In a recent Reuter’s article, Kevin Abbott, a vice president at C.H. Robinson stated, “The transportation industry is a relationship-backed business.  There's a lot more to it than just finding a piece of equipment.”  Other logistics professionals seem to agree.  I am reminded of a conversation with a small fleet owner about this very subject.  He stated, “We have been hearing that the ‘Uber of Trucking’ is coming.  But the Uber of Trucking ended up being Uber!  How ironic is that?”

If you conduct any research about Uber driver pay, you will quickly find out that there are many complaints and demands for rate increases.  Uber is on the fast track for replacing their drivers with autonomous vehicles.  They fully expect that autonomous vehicles will arrive to pick up clients and transport them to their destination within our lifetimes.  No more driver complaints.  Now, take this model and put it in the trucking industry.  As Bob Dylan sang, "Times they are a-Changing."
 

Comment (1)

Joey Slaughter

Joey Slaughter is the owner of Blue Ridge Transport, LLC. Joey has been in the trucking industry since 1992.

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It will be interesting to see what the future holds for us drivers.

October 30, 2016 9:46:15 AM