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Doft in PressJune 2, 2017· 1 min read

Can Uber Freight Disrupt the Freight Industry?

Can Uber Freight Disrupt the Freight Industry?

When Uber Freight launched, it brought the ride-sharing matching model to the trucking industry: a cloud-based app that matches carriers with shippers, focused on dry van and reefer (refrigerated) loads.

The company applied its experience matching supply and demand and building pricing algorithms, then turned that toward matching freight with owner-operators and small fleets.

Fast pay as the differentiator

The standout feature was speed of payment. Drivers traditionally wait up to 30 days to get paid for a delivery, which is a serious cash-flow problem for small carriers and independent drivers.

"Regardless of when the shipper pays us, we'll pay out for any load that is taken out on our app within a couple days, no questions asked," an Uber Freight product manager said.

Fast, reliable payment remains one of the biggest reasons drivers adopt a load-matching platform, and it is now table stakes for any serious freight app.

Leveling the playing field

Uber also framed the app as a way to level the playing field for truckers. Freight has long been dominated by a narrow demographic, and well-documented incidents of discrimination against women and minorities have been a real problem. Transparent, app-based matching where loads are offered on equipment and location, not relationships, gives independent drivers a fairer shot at good freight.

A crowded market, slow to adopt

On-demand freight launched into a field already crowded with venture-backed startups such as Flexport, Transfix, Loadsmart, Convoy, Doft, Cargo Chief and others. At the time, fewer than 5 percent of U.S. trucking lines used on-demand freight services, so winning market share from established brokers was the real challenge, then and now.

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