How Disruptive Will Uber Freight Be for Trucking?

A crowded field, not a brand-new idea

Uber Freight, an app matching owner-operators and small fleets with loads to haul, launched with much fanfare. Yet the use of computer technology to match freight with the trucks that can haul it is hardly new.

There are already a number of load-matching apps out there. Companies like DAT and uShip have been load-matching for a long time, and there is a host of newer entrants, including Convoy, Next Trucking, Trucker Path, Loadsmart, Transfix, and Doft. "Uber for trucking" became one of the hottest pitches attracting venture capital.

The big question Uber Freight raised was simple: do these apps actually book a load instantly, or do they just post it and leave the carrier to chase it down by phone?

"Most of the apps that are out there might show the load, but it's still on the carrier to pick up the phone to call to see if that load is real," Eric Berdinis, product lead for Uber Freight, told HDT. "A lot of times that load posted hours or days ago and someone else has taken it, but no one removed the posting."

We talked with three companies to find out how they work, how they compare, and how disruptive Uber Freight really is.

Next Trucking

Next Trucking has a function literally called "Book It!" that delivers an instant experience. CEO Lidia Yan got the idea from her family's logistics business in southern California. The app uses matching algorithms to pair vetted truckers with loads. With the push of a button, drivers can accept or decline jobs based on where they are, the time they want to travel, type of trailer, and rate.

"Our app allows truckers to dictate what they want," Yan explained. "We realize that drivers spend a lot of time negotiating with brokers."

Next Trucking targets owner-operators and small fleets with two to six trucks and provides a free fleet management tool plus accounting tools. The app is free for drivers; shippers pay a charge that is lower than a traditional broker would charge.

Doft

Doft's model is pure on-demand truck matching that pairs loads and trucks within a short amount of time. There are two mobile apps, one for freight shippers and another for truck drivers, which instantly match a shipper and a truck. Booking a truck can take minutes instead of hours.

Like the rest of the field, Doft focuses on owner-operators and small fleets, and it pays drivers fast. A fuel advance option lets drivers get up to 30% of a freight bill posted to their bank account right after a pickup, simply by uploading the bill of lading in the Doft app.

The difference from a mobile load board is timing. On a load board, a posting can hang there until the data goes stale. Doft uses instant, on-the-fly matching: a load is valid only while a driver is looking at it on the screen, and it disappears within 60 to 120 seconds if it is not taken. Shippers can then re-try with a different price or time settings, or use another channel.

Doft's goal is to build a community of drivers, the same way the best fleets do.

uShip

uShip was connecting loads and trucks before apps and Uber were household words. The company launched in 2004 as a desktop-based system working a bit like eBay for trucking. Now app-based, it is a global company used by major less-than-truckload carriers and large logistics providers.

Each transportation provider gets a free profile page highlighting their experience, equipment, insurance, authority, photos, and a feedback rating from people and companies that have shipped with them. uShip also leans on a few strengths:

• Peer to peer: anyone with any size vehicle can sign on to be a carrier
• Ships everything: cars, boats, motorcycles, furniture, appliances, construction equipment
• Ships across the U.S., Europe, and parts of India and South America
• A bidding model that lets carriers and shippers negotiate price

So how disruptive is "Uber for trucking"?

The freight market is nothing like the taxi market. The regulatory, contractual, and operational issues involved in moving freight are far more complex, which is why a lot of companies with deep trucking knowledge have been working on this for years.

"It keeps everyone in this industry on our toes and reminds us that shipping and logistics is ready for more innovation, more digitalization," said uShip CEO Mike Williams.

The takeaway for carriers and owner-operators is encouraging: more digital tools mean faster matching, less time on the phone, and quicker pay. The winners will be the platforms that actually understand trucking, not just the ones with the catchiest pitch.