Uber for freight now!!

[Rob]

Only time will tell. In the meantime, is anyone out there trying to find you good paying freight... the kind that doesn't require a calculator to determine if you will make a profit hauling it? I wouldn't count on Uber for that.

Hard to count on a lot of the brokers out there for that also.

Direct customer freight or brokers that care about the carriers are the way to go. Both have helped us keep at it for 19 years.
Uber or Convoy or whoever ends up with the market share of the app world will be basing pricing on what the shipper or receiver wants to pay I would imagine or do you think it will go the uship joke route of a Dutch auction like a lot of the all about me brokers want to do.

 

[loaders]

In order to slow the advance of technology driven freight matching programs, I think it is imperative that brokers and carriers do the following:

Brokers:1) service, service and service your customer so they appreciate the extra value you bring to the transaction and might not be tempted to move to the price only suppliers.
2) develop mutually beneficial and respectful relationships with a select group of professional carriers. Don't let a low rate offering from an unknown supplier sway you from your commitment to providing only the best service.

Carriers:1) treat all your customers, brokers and direct shippers alike, with respect, knowing that without it, you have opened the door to the competition.
2)be honest and willing to communicate, even when the news might not be good.
3) if offered a below market rate, do your best to refuse it, as acceptance reinforces the low rate market and works against the desire for better rates for all in the industry.

 

[Freight Broker]

I don't know. Price is driven by capacity availability and service needs. Uber and others will likely make it possible for anyone to see what trucks are available at any given time, and that will drive down the price. Right now "trucks available" is almost anyone's guess... i.e. I don't really know how many trucks there are in Lincoln, NE that would be interested in 6 skids for Guelph today. The technology will be able to determine that in real time, resulting in better planning and lower rates. My job is to find good paying freight for my carrier base, and certain types of freight that my carriers like to haul. And on the customer side, I'm looking for shippers who pay more for better service. As a broker I can't be the low cost provider anyway.. Shippers who are hell bent on the cheapest rates are more interested in working with carriers directly anyway... they are not who I target. I'm more interested in shippers who have complex transportation needs that justify my presence as a middleman.

 

[Jim L]

An app does not need to be, and should not be, involved in the transfer of funds. This basically creates another broker with an app to do the work. The transfer of funds will create an opportunity for huge failure as cheques bounce or freight moves and customers go bankrupt in the meantime etc. It needs to be much like the e-bay model, where the details are provided, people communicate with pricing and at the end of the movement, an opportunity to rate both the shipper/receiver/freight/payment and the carrier/service/communication - with comments and an opportunity to respond. After a match has been confirmed, if the freight is not what they said it was, the carrier will provide a poor score with comments. If the carrier promised service but did not provide, the payor will provide a poor score for the carrier with comments. As you look over your matches you will see the number of stars/movements and decide on your own weather you want to continue with the match.

To boil it down, it is really a very simple model to provide but everyone who is trying to provide it wants to have an opportunity to make money in the middle. This is because the people trying it are freight brokers wanting a larger piece of the pie. If it were geeks from silicon valley, they'd be able to monetize advertising or whatever they do just like ebay. There is no cost to use ebay...why would there be a cost to use this?

 

[ShawnR]

I'm pretty sure ebay isn't free, it's free to buy but not to sell

also this app will probably only take credit card or visa, so no cheques to bounce or bankruptcy issues.

just my thoughts on those points Jim. I still agree though, they should not be handling the money at all.

 

[Jim L]

I'm pretty sure ebay isn't free, it's free to buy but not to sell

also this app will probably only take credit card or visa, so no cheques to bounce or bankruptcy issues.

just my thoughts on those points Jim. I still agree though, they should not be handling the money at all.

For the few times I have been involved with somebody posting on e-bay I don't remember any monies being taken by e-bay. They did receive money through pay-pal but I didn't think there was a commission involved for e-bay.

 

[theman]

BTW, on LTL and small package there are a few good effective offerings ... one is actually partly owned by the ownership of Lakeside Logistics. The truckload business will be harder to do this on just because it's so fragmented.

 

[ShawnR]

oh no but they ask for money to let sellers post items, it's not a free system, but I get what you meant. they don't take a cut just an upfront fee to post items.

http://pages.ebay.ca/help/sell/fees.html#how

 

[Freight Broker]

Aside from the technology, Uber is nothing more than a poor man's taxi service. Using immigrants and poor people and putting wheels under them to undercut a regulated industry that was paying a living wage isn't really innovative, but ok. Somehow I doubt that Uber Freight will be much different in that regard..

 

[Rob]

Aside from the technology, Uber is nothing more than a poor man's taxi service. Using immigrants and poor people and putting wheels under them to undercut a regulated industry that was paying a living wage isn't really innovative, but ok. Somehow I doubt that Uber Freight will be much different in that regard..

Holy shit batman I agree with Freight Broker.

No if we could just get the freightbrokers regulated and cut out the double and triple brokers we could all make a buck.

 

[loaders]

Wait a minute....... a large portion of the freight brokerage industry already adheres to the rules and is regulated Rob. If carriers would just only use the regulated firms, the unregulated/double/triple/load board surfer/basement brokers would wither on the vine and hopefully disappear entirely. I should have added that to my list..... brokers should only use professional, fully regulated carriers and carriers should only use compliant, fully licensed brokers.

 

[Jim L]

Wait a minute....... a large portion of the freight brokerage industry already adheres to the rules and is regulated Rob. If carriers would just only use the regulated firms, the unregulated/double/triple/load board surfer/basement brokers would wither on the vine and hopefully disappear entirely. I should have added that to my list..... brokers should only use professional, fully regulated carriers and carriers should only use compliant, fully licensed brokers.

Absolutely right on about limiting the use of unlicensed brokers! If there was more freight than trucks carriers would definitely be more choosey with whom they pick as a customer.

Also, if brokers could take the time to confirm the amount of trucks that a carrier has and is shown on the FMCSA they would help themselves to avoid a ton of hassle. The last broker I dealt with that was in the middle of the double broker problem didn't realize the carrier they hired to move 45 loads per month only had one truck and moved 150 miles in 2015. I asked him how he was so surprised that all the loads were double brokered?

Of course, non of this is applicable to freight that does not travel in the US.

 

[loaders]

Exactly Jim. Just as a carrier should thoroughly check out the broker he is considering doing business with, a broker should also perform their due diligence on the carrier they are about to entrust their customers freight to.

 

[AccountsReceivable@DRC]

Aside from the technology, Uber is nothing more than a poor man's taxi service. Using immigrants and poor people and putting wheels under them to undercut a regulated industry that was paying a living wage isn't really innovative

I totally disagree. Uber is not only technology - it's putting "service" back into service which consumers are paying for. It is making the service provider - namely the Uber driver - accountable for their job. If you have actually used Uber - which I have - you'll find their drivers are not just immigrants. They are working people of various backgrounds taking on extra part time work. And not only are Uber drivers fully trained to be a service oriented provider - they do not tolerate negative feedback from consumers. If a driver receives too many negative feedback remarks from customers - they are fired. And I believe they are also unable to use Uber services themselves in future.

Not many cabbies help the elderly to the door with their groceries. In fact not many get out of the car to put luggage in the trunk either or open an umbrella in the rain. Uber does...and alot more. So saying it's a poor man's taxi service is way off the mark. It's a technology based application - servicing the needs of consumers for a good price.

Why call for a taxi that may/may not show up on time, has a messy interior with ripped seats and takes the long way to your destination. When you can use Uber off your cell, track their location, has a comfortable car and friendly driver that knows they will be rated based on the service he/she provides you for that ride. And I get my bags carried to the front door knowing the ride is already paid for.

If Uber's a "poor man's" taxi - then take my last 2 cents for this thread.

 

[theman]

Agree about Uber vs taxi service. As far as freight goes, they have the resources behind them to do a better job vetting out carrier partners than a lot of brokers out there. I know in places that I've worked that there are too many times that a carrier is being given a lot of work without being vetted properly. The SAFER stats are not always accurate as far as # of trucks and mileage, but when someone sees a fleet of 1-5 trucks and they are giving the carrier more than the odd load, they need to vet the carrier further ... like go and see their operations or something. I know of only a handful of brokers who do this.

 

[Freight Broker]

Uber drivers have their problems too. Like the guy who killed people between fares in Michigan (and he claimed Uber made him do it). I'm sure there are good and bad Uber drivers, but on the whole they are poor people who are running fares just to get by. Many are immigrants (nothing wrong with that), but the demographic of the average Uber driver is someone who is hard up against it and using his old beater to run fares so that he can make the rent. Now, don't get me wrong, I'm not down on anyone who is having a hard time, and I applaud people who have the initiative to run fares in their own vehicles as opposed to sitting on welfare. But, that doesn't make Uber some kind of innovator that is revolutionizing transportation. Sure, the technology is great, but they're using it to undermine the existing taxi industry. They use the technology to hook up mostly desperate people with people who needs rides and don't want to pay the going taxi rates. That's basically what they're doing.. I would hardly call that innovative.

 

[lowmiler88]

Freight Broker I have yet to be in an old beater Uber car but 99% of the taxi's I've been in sure have been old beaters.

 

[loaders]

The innovation that Uber has brought to the taxi industry has been the cash less service and the ability to conduct the entire transaction using a cellular device. It could be argued that "surge pricing" is also part of that innovation, along with a greater attention to customer service. All of these things could have been implemented by the traditional taxi companies, but due to what appears to be their own complacency, they have allowed Uber to establish themselves as a viable alternative. I still have a problem though, with a service provider entering the marketplace and ignoring the established rules and regulations at the expense of the existing players. If there are rules for a certain industry, then all those in that industry should adhere to them.

 

[lowmiler88]

Loaders the issue I have is that when there is a value (and a large one) on an individual license to operate and they can be bought and sold then it is a closed industry. Your pricing is fixed so it is not an open market so no one tries to innovate as they would really be cutting their own throats. When this happens we see the affect as far as equipment, service etc goes and if the trucking industry stayed closed like it was 70% of us on this board would be doing something.

 

[Rob]

Well stated loaders. While Uber may work and have service levels superior in most cases to the existing business they have undermined and turned their noses up at all levels of government and basically said we are doing it to bad if you do not like it. Sounds like going back to the old days of the gypsy trucker running at night with 3 logbooks. Try that now. Want to be in the game play by all the same rules.