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Amazon getting into the freight matching business
- Thread starter Paul S
- Start date
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this part is the scariest:
"The app will offer real-time pricing and driving directions, as well as personalized features such as truck-stop recommendations and a suggested "tour" of loads to pick up and drop off. It could also have tracking and payment options to speed up the entire shipping process."
So will they pay to be a broker? Will they have insurance for the liability of giving a driver bad directions sending him into an 80,000lbs pile up? Offering tracking, how will they do that? Payment options, so they really do need to have a bond or trust behind them and the $75k won't protect anyone at their size...
this may work for an owner op here and there, but I don't see an app like this working on the larger scale for shippers who move more than a load a day... and carriers who have over 20 trucks...
"The app will offer real-time pricing and driving directions, as well as personalized features such as truck-stop recommendations and a suggested "tour" of loads to pick up and drop off. It could also have tracking and payment options to speed up the entire shipping process."
So will they pay to be a broker? Will they have insurance for the liability of giving a driver bad directions sending him into an 80,000lbs pile up? Offering tracking, how will they do that? Payment options, so they really do need to have a bond or trust behind them and the $75k won't protect anyone at their size...
this may work for an owner op here and there, but I don't see an app like this working on the larger scale for shippers who move more than a load a day... and carriers who have over 20 trucks...
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When they and Uber stop losing billions of dollars every year then I'll take it more seriously.. but for now uncle Guido and his one cab operation is more profitable than Uber is.. they're geniuses.. yeah right.
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It will work for small shippers because realistically they aren't the targets of sales reps in the industry and when the relationship is purely transactional, it's not even lucrative to seek these customers out. Tracking isn't a problem because the carriers will all be doing it through smart-phone apps or an easy online process.
For larger customers, the industry is moving more towards tailored, end to end solutions and away from cold-call, spot freight types of business models.
For larger customers, the industry is moving more towards tailored, end to end solutions and away from cold-call, spot freight types of business models.
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People often confuse technology with capability. Some of my top carriers are old school guys who aren't up on the latest technology... but they sure are good at picking up and delivering on time, and that's really what counts. It's probably the same for brokers.. at the end of the day can you get the job done and are you a prompt payer?.. that's what people care about.
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That still counts but it's much more than that now. It really depends on what level of business your customer base is in. But the younger generation will migrate much more towards it as the older guard departs.
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I think it's very dangerous for all of us to sit back on our laurels and assume that this technology won't be adopted by the masses. Isn't that what the taxi business did with Uber? Uber was successful as they took an antiquated industry and created a service and app that was easy to use, increased efficiency and decreased costs. Even the "old school" taxi drivers are waving the white flag and joining on as they are losing out on business if they don't jump on the band wagon.
This will of course take some time to be adopted by a large amount of companies and don't think that the big business won't be interested in integrating this into any of their in house SAP, ERP, TMS systems. As per the smaller companies adopting this, that will of course happen much quicker and if I where to loose a large amount of my small customers I would be in financial trouble as we have a large amount of small business, a medium amount of medium businesses and a handful of large companies. I am sure if you talk to most freight brokers, their customer profile would match this scenario.
Another point is that Uber has incredible customer service. Anytime I have had an issue they have a local rep that responds to my email within the hour and without question, they give me a credit. So that being said, if they do the same in the transport business, what would stop people from migrating to a service that is easier, more cost effective and just as good if not better customer service than what we provide?
This will of course take some time to be adopted by a large amount of companies and don't think that the big business won't be interested in integrating this into any of their in house SAP, ERP, TMS systems. As per the smaller companies adopting this, that will of course happen much quicker and if I where to loose a large amount of my small customers I would be in financial trouble as we have a large amount of small business, a medium amount of medium businesses and a handful of large companies. I am sure if you talk to most freight brokers, their customer profile would match this scenario.
Another point is that Uber has incredible customer service. Anytime I have had an issue they have a local rep that responds to my email within the hour and without question, they give me a credit. So that being said, if they do the same in the transport business, what would stop people from migrating to a service that is easier, more cost effective and just as good if not better customer service than what we provide?
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Technology will constantly evolve, and most of us will take advantage of the benefits of the latest technology. Amazon certainly doesn't have a lock on technology, and if they want to become a broker then by all means go ahead. We've already got 20 thousand competitors.. some of whom are also very tech savy, so adding one more to the fray won't really matter. Yes, the business will continue to be hyper competitive.
Like or hate Uber, the fact is the traditional cab companies are still around, and some of them have adapted quite nicely. A neighbour on my street owns a cab company. He says he's never been busier, and he's being "forced" to add more cars due to the increased demand. I asked him about Uber, and his reply was much akin to my own above: he's always had alot of competition.. from buses and privately own cars.. to people who walk..to Uber and Lift.. etc. Just because someone comes along with a new technology doesn't alter the fundamental maxim: provide a good service at a fair price, and you'll get business.
Like or hate Uber, the fact is the traditional cab companies are still around, and some of them have adapted quite nicely. A neighbour on my street owns a cab company. He says he's never been busier, and he's being "forced" to add more cars due to the increased demand. I asked him about Uber, and his reply was much akin to my own above: he's always had alot of competition.. from buses and privately own cars.. to people who walk..to Uber and Lift.. etc. Just because someone comes along with a new technology doesn't alter the fundamental maxim: provide a good service at a fair price, and you'll get business.
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It's a matter of adapting ... which is why I'm always preaching about the selling model for brokerage and 3PL in general evolving over time. Logistics/supply chain is a quickly changing business ... always has been, but with better information comes faster speed.
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FreightFax - what was the purpose of your post? 'Some' words and definitely nothing added to this conversation...
theman is referring to numerous other posts and his opinion about the industry. The post is on topic. Yours is not.
Keep well,
Mike
theman is referring to numerous other posts and his opinion about the industry. The post is on topic. Yours is not.
Keep well,
Mike
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Thanks Mike. I think sometimes people are taken aback when something is threatening them. I'm not the threat ... all I'm saying is that what worked well before doesn't necessarily work well now, and what works well now doesn't necessarily work in the future.
We have to realize that our industry is about moving things from place to place, but not simply that. The demands of customers and our customers' customers are getting more demanding, so the expectations on us are more complex. If we don't adapt to this, we get left behind.
I have no trouble taking criticism.
We have to realize that our industry is about moving things from place to place, but not simply that. The demands of customers and our customers' customers are getting more demanding, so the expectations on us are more complex. If we don't adapt to this, we get left behind.
I have no trouble taking criticism.
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Here's another interesting read about this topic:
https://www.linkedin.com/pulse/uber-freight-its-just-truck-drivers-whose-jobs-risk-john-mcdermott
https://www.linkedin.com/pulse/uber-freight-its-just-truck-drivers-whose-jobs-risk-john-mcdermott
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http://www.truckinginfo.com/news/print/story/2017/05/uber-launches-uber-freight.aspx
Here is the ling to the Uber launch.
Here is the ling to the Uber launch.
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