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Uber for freight now!!
- Thread starter RobsanT
- Start date
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As long as the folks who maintain the app are making sure the carriers are properly licensed and insured etc this has the potential to be great news for shippers & carriers (no-so-much for brokers)
My suspicion is that they're under-estimating the sheer volume of regulatory administration as well as the amount of time they will spend on conflict resolution...but if they're prepared to invest & stick with it, it could be revolutionary.
My suspicion is that they're under-estimating the sheer volume of regulatory administration as well as the amount of time they will spend on conflict resolution...but if they're prepared to invest & stick with it, it could be revolutionary.
this would probably be "use at your own risk' and then they don't have to check insurance, authority, etc
but as a user you'll be able to monitor the carriers and pick & choose who you want to do business with, and block out those you don't want seeing your freight
but as a user you'll be able to monitor the carriers and pick & choose who you want to do business with, and block out those you don't want seeing your freight
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This is great technology that brokers can use as well. I don't view it as a threat in the least. Every time new technology comes along my life gets easier. I'm so much more productive today than I was just 10 years ago, thanks to technology.
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I believe that the smaller transactional-based business out there is going to end up going this route ... whether it's Uber or other third parties that run it. The trick is that there needs to be some back-office work done to make sure there isn't a bunch of fraud happening. I would be very surprised if the megabrokers out there aren't working on systems just like it.
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The way I read the article is that the Shipper pays the App, and the App pays the carrier. Which is (I believe) how Uber works. Assuming that's correct it should fall on the App to monitor authorities wouldn't it?
This to me the biggest value to the App is that a Shipper doesn't need to understand Transportation. All he has to do is enter a dozen pieces of information & wait for his truck to show up.
From our viewpoint, the advantage is no more fights between Brokers & Carriers when loads don't go as planned. It *should* establish an industry standard for free time, wait-time, cancelled orders etc. It *should* also help fill our trucks with fewer empty miles.
I agree with "theman". If it works, smaller shippers with their one or two skids a week outa Jersey will jump all over it, but only if it's cheaper than going through a broker. Big shippers who use Big 3pl's will not consider it because the Big 3pl's offer so much more value added services that a small broker cannot supply. In other words, small brokers who have a bunch of small accounts should be very concerned. Even if it works out to the same price, the 20 t0 30 year old shippers will love to play with their new APP. That is how they communicate.
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Substitute the word "Broker" for "App" in your post and you have what's happening right now. Uber is going to want a cut of the profits just like any other Broker... but who knows, maybe these "innovators" are willing to work for peanuts. So far though, taxi fares haven't come down any..
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With that kind of thinking would LINK not be accountable the same as the new app's? Hell look at all the scumbags on link and get loaded etc.
It may just work and for a carrier we have nothing to lose if the app is paying the freight and with the kind of seed money in the article I am thinking they have the money behind them to float the boat.
Very true, except that APPS are designed to handle thousands of shipments at once. Their backroom expense per shipment will be much lower than a broker trying to move the same amount of shipments. It will be a quick electronic scan of hundred of carriers checking for capacity and rates. The whole search will take seconds. The shipper will be given a choice of a few of the top rated carrier and push a button to accept one and the pickup is submitted. Don't get me wrong, I prefer to deal with people and would continue to deal with a broker as long as I could. Mainly because screaming at my I-Phone when the pickup gets missed is no fun at all.
@Rob yeah but LINK isn't taking a cut, they still leave that between parties, and it's up to each other to vet the service providers
this Uber thing would handle money too, this is what may be it's downfall, it would need a broker's license and a bond
in Quebec the Uber taxi thing is a real PITA, major issues because of how much a taxi permit costs
this Uber thing would handle money too, this is what may be it's downfall, it would need a broker's license and a bond
in Quebec the Uber taxi thing is a real PITA, major issues because of how much a taxi permit costs
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Freightbroker, did you not hear about the Uber users that got ridiculous charges during the holiday's. $1100 and $1600 for something that usually cost 40 or 50 bucks...
Also, I'm quite sure load brokers, were never supposed to be included. I would guess that the whole idea behind this was to give direct contact to shippers for transportation companies. I believe that shippers have begun to understand that about the only way to bring shipping costs down is to eliminate the middleman and the amount of money that said brokers are putting in their pockets. This will help cut costs and probably help carriers get their fair share. If brokers get involved then what's the point. . .
Also, I'm quite sure load brokers, were never supposed to be included. I would guess that the whole idea behind this was to give direct contact to shippers for transportation companies. I believe that shippers have begun to understand that about the only way to bring shipping costs down is to eliminate the middleman and the amount of money that said brokers are putting in their pockets. This will help cut costs and probably help carriers get their fair share. If brokers get involved then what's the point. . .
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The Uber Ap would be of value to me about 10% of the time because for 90% of my freight I have a carrier in mind within two nanoseconds of getting the order... i.e. no searching involved. But for that 10%, sure, let it search instead of me posting on a board hoping someone calls. And a search that turns up trucks available is really only a small part of the job: "truck available" doesn't mean driver wants the load, carrier wants the load, rates still need to be negotiated, appointments made, etc.
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You're assuming we add nothing of value presently. If that were the case I'd be out of business right now instead of making a healthy margin. There's no law now that requires freight brokers.. shippers and carriers can and do work directly on a lot of freight right now without any Uber app.
@Freight Broker this is supposed to all be done within the app, I don't use Uber but I get the jist of it and it seems to be all in one spot.
so yeah appts might make it complicated if you have to run your operations through the app.
my bet is it won't work for trucking, even now for the taxi industry it seems to have caused a major uproar, well in Quebec anyways
so yeah appts might make it complicated if you have to run your operations through the app.
my bet is it won't work for trucking, even now for the taxi industry it seems to have caused a major uproar, well in Quebec anyways
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It will work and will become another tool for us to use. Like I stated earlier, I will use it for the 10% of my freight that currently needs a loadboard. For the rest... I don't need to search.
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I don't want to insult you Freight Broker. But... your statement presumes that we truckers are to dumb to take care of things ourselves. There was a time, before brokers came into the picture, when we did it all by ourselves Many freight brokers just pay themselves to make promises that transportation companies would never make. Their knowledge of transportation is to academic. They cannot know if the truck they will find is starting with a fresh log book or if the truck is 6 hours into it's day. Many brokers calculate everything as if the truck and driver are fresh and at zero. Pick up and delivery appointments already made, not calculating that at example Chicago, well we aren't doing 50 miles / hour because traffic is to dense. Too many brokers have never done anything more than yell at a truck in traffic because it's in the way. At least, when it's the trucking company, we know what we can do and when we can do it. Many brokers could care less.
DISCLAIMER: please notice that I have stated MANY as opposed to ALL. I know that there are good Brokers out there. But, you are far and few between. Be proud and continue treating us like human beings at your level. Freight Broker, we probably will never work together because you do flatbed and we do dry van so we will never have the pleasure of collaboration
as for G. Roch well YOU ROCK 
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Martinev, I don't know how you arrived that presumption. No where have I stated or even insinuated that truckers are too dumb to take care of themselves. I stated that we brokers exist due to market forces.. i.e. there's a need for our services. That's all I've stated.. I don't know about "many brokers".. all I know is how I run my business. If other brokers use dancing girls and whips then that's their business. I will use the Uber app if it provides some utility to my business. By now you and most others on this site know that I pretty much stick to reason and facts and really don't give a shit if I'm liked/not liked.. it's just a business to me and like any business I profit to the extent that I'm useful to others.