{"id":1985,"date":"2016-08-05T15:45:38","date_gmt":"2016-08-05T15:45:38","guid":{"rendered":"https:\/\/cantruck.ca\/uber-trucking-not-so-fast\/"},"modified":"2025-01-10T16:50:05","modified_gmt":"2025-01-10T16:50:05","slug":"uber-trucking-not-so-fast","status":"publish","type":"post","link":"https:\/\/cantruck.ca\/fr\/uber-trucking-not-so-fast\/","title":{"rendered":"\u2018Uber\u2019 Trucking? Not So Fast"},"content":{"rendered":"<p>Despite talk of\u00a0 investment capital being funneled into <a href=\"http:\/\/www.forbes.com\/sites\/centurylink\/2016\/02\/23\/how-uber-for-trucking-apps-are-driving-change-in-the-freight-industry\/#2e4dc7926289\">\u2018Uber for trucking\u2019 startups<\/a> these days, a new study concludes that the trucking industry is way too complex to become an Uber type of business even though Digital Freight Matching (DFM) services are common in matching a shipper\u2019s freight with available carrier capacity.<\/p>\n<p>From <em>Material Handling &amp; Logistics News<\/em>:<\/p>\n<p>[otaTextBox padding=\u00a0\u00bb20&Prime;]<\/p>\n<p>One of the key components of Uber\u2019s model is the commodity-like nature of the ride-hailing service, explains Armstrong &amp; Associates, who released a new report, \u00ab\u00a0Digital Freight Matching \u2013 Capturing Technology-Based Efficiencies in the Trucking Industry.\u201d<\/p>\n<p>A&amp;A\u2019s analysis shows the principle behind DFM\u00a0may be simple, but the trucking industry is not. \u201dDomestic transportation is not a simple commodity,\u201d Armstrong said.\u201d Complexities arise in the form of specialized equipment types, shipments transported via multiple modes, and necessary exception handling for service issues such as equipment breakdowns. Shipments are high-value and time sensitive. Placing an Uber-like app atop a complex industry doesn\u2019t truly address the problem. Shippers and carriers alike will be disappointed if this is the extent of the \u2018solution.\u2019\u201d<\/p>\n<p>DFM\u00a0apps do however include some of the functionality popularized by Uber \u2013 algorithmic pricing, API map integration, track-and-trace, and mobile transactions \u2013 along with features specific to trucking, such as trip planning, digital document storage, and TMS integration. But it does account for nuances in the trucking industry.<\/p>\n<p>DFM companies will face several challenges: competition, regulations, investment, possible\u00a0cannibalization by other emerging technologies, and issues specific to the nature of the trucking\u00a0industry, including:<\/p>\n<ul>\n<li>Long-established freight brokers provide exception handling, backup in the case of equipment\u00a0breakdown, relationship management, access to transportation management systems, and\u00a0access to a wide variety of carriers. DFM companies are therefore competing against formidable incumbents.<\/li>\n<li>The ambiguous nature of the sharing economy is both an asset and a liability. While the\u00a0space sometimes allows circumvention of regulations faced by more traditional industries, it also\u00a0presents new challenges. Other companies forging the parameters of the Sharing Economy, such as Uber and Airbnb, have encountered policy disputes. Furthermore, as companies operating in this environment face increasing scrutiny, new regulations are also a possibility.<\/li>\n<li>Digital Freight Matching is just one of many emerging technologies. Innovations like self-driving vehicles and drones will compete with DFM companies or could preempt them entirely.<\/li>\n<li>The very nature of the trucking industry and the \u2018freight problem\u2019 presents their own challenges. On the surface, the problem of freight capacity looks very much like Uber\u2019s problem of available taxi capacity. However, further examination shows the problems have fundamental differences, and DFM success will rely on addressing nuances of the underlying problem.<\/li>\n<\/ul>\n<p>This technology will continue to grow as DFM\u00a0has attracted over $180 million in venture capital investment since 2011, including $67 million in 2016 alone.<\/p>\n<p>[\/otaTextBox]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Despite talk of\u00a0 investment capital being funneled into \u2018Uber for trucking\u2019 startups these days, a new study concludes that the trucking industry is way too complex to become an Uber&#8230;<\/p>\n","protected":false},"author":2,"featured_media":557,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[16,54],"tags":[30,696,697,98,24,698],"class_list":["post-1985","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-conditions","category-technology-equipment","tag-capacity","tag-freight-matching","tag-load-boards","tag-shippers","tag-supply-chain","tag-uber"],"acf":[],"_links":{"self":[{"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/posts\/1985","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/comments?post=1985"}],"version-history":[{"count":0,"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/posts\/1985\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/media\/557"}],"wp:attachment":[{"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/media?parent=1985"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/categories?post=1985"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/tags?post=1985"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}