Uber Expands its Logistics Company UberFreight

News and Announcements Uber
#1

Uber is seeking ways to increase its high revenue services to strengthen its market revenues and build up a larger market share for the supply chain network. Chicago based “Load Delivered” entered negotiations with Uber last month, but the talks have ceased due to the difference in the positions.

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Uber stated that it is interested in expanding its freight sector, but the discussions with “Load Delivered” fell through, and they will not proceed with the acquisition.

Uber’s newest service, UberFreight comes to complement its current mix of rideshare driving, door-to-door deliveries, and parcel deliveries. The UberFreight service will operate through an Uber app enabling suppliers access to a “fast” freight delivery service.

Load Delivered is a Chicago based freight transport brokerage company that pairs truckers with payloads. The talks were considered to be serious and advanced since the company discussed the deal with their truckers and 70 strong staff. One of the reasons that Load Delivered did not want to continue the negotiations was based on its vision, it has not yet decided if it wants to sell it’s successful $87 million yearly revenues and operations or to remain independent.

Uber spearheaded their new UberFreight division with Bill Driegert, an experienced freight professional that worked with leading experts such as Coyote Logistics that was bought out by UPS in 2015. Due to this positioning, UberFreight is now staffed by a significant number of ex Coyote employees.

Uber’s expansion into freight is not just for increasing their marketing mix. It comes as a specific market targeted for the future AV technology expansion. Supply chain is becoming a hot and sexy sector since the introduction of the Blockchain and is now emerging as a leading industrial sector that uses more and more automation to improve processes. Uber’s investment comes when a lot of new technologies are starting to change the way the word moves freight globally and nationally. The introduction of AV will change supply chain completely, reducing overheads, which will lead to a price reduction in all retail prices.

#2

It was obvious that Uber would tackle this sector. Transportation is basically the same no matter what you transport. It involves a machine for transportation (Car, Train, Bike, Bus, Ship, Plane, Spaceship…whatever moves you) and an operator (driver, pilot, captain etc.) Uber only needs to create a network of transportation solutions to create a company that can eclipse UPS and other such global networks. In fact Uber can offer a door to door solution literally, by starting with a local pickup, delivering it to a national sorting house and transferring it globally, to be met by a local distributor (Uber driver). Just give Uber time and you will see they will partner with a shipping company, an airfreight company and eventually with an airline company to offer Uber flights (low cost) and Uber ferries too.

#3

Yup, finally I agree with someone here. Andrew my man, you have said the obvious, and I wonder how long it will take the Uber freight team to realize that this is their only option for survival.

#4

As an engineer that has a background in logistics, I can assure you that Uber will emerge as a strong presence in this market. Still the distance from where they are to where companies such as Maersk are, is still enormous.