Fleet Management News & Business Info | Commercial Carrier Journal
Issue link: http://read.dmtmag.com/i/721587
T he theme of this issue of IT Magazine is "e New Normal: Rules and Regs." While most of you know me and know I love to express my disdain for government and certain rules and regulations, I am going to dri off-topic just a little and talk about something a lot of people are calling the new normal: Uber. I have heard a lot of people talking about a new generation of trucking that is becoming the "Uber for trucking." Uber? Really? Armstrong & Associates Inc. recently published a report stating the term "Uber for Trucking" is a misnomer. Its research concluded that the term "Digital Freight Matching" is a much more appropriate description. Let's be honest. Uber is simple. e company began in 2009 and is headquartered in San Francisco. It operates the Uber mobile app, which allows consumers to use their smartphones to submit a trip request, which is then routed to Uber drivers who use their own cars to take customers where they need to go. Simple. Trucking and the transportation industry is anything but simple. e principle of digital freight matching seems simple: Companies use a digital platform to match a shipper's freight with available carrier capacity by using a digital app to connect shippers and carriers. at, however, is where the simplicity ends. In the trucking industry there are many variables that need to be addressed. Just because you drive a truck doesn't necessarily mean you can accept a load. For instance, a regular van is not going to accept a load of ice cream from Dallas to Los Angeles. Obviously, on arrival, it would be nothing more than a trailer full of goo. Specialized equipment types, multiple modes and issues such as equipment breakdowns make trucking very complex and an Uber-type app atop a complex industry doesn't address the need. Don't think for a moment that digital freight matching apps are that simple, however. Companies aren't simply matching the Uber model. In fact, many companies are rejecting the Uberization comparison. Some apps will feature some Uber functionality, which includes trip planning, digital document storage, and TMS integration. Others go further to include market conditions and trends, fuel pricing and even comparisons of product offerings. I was asked if digital freight matching was simply what Truckstop.com already does and yes, in a way it is. e difference is that those offering digital freight matching "own" the match and pay a pre-determined amount to the driver for the freight being hauled. Once payment is made, the digital freight matching owner then takes his or her cut for setting up the haul, then pays the driver. At Truckstop.com, we do not own the match. We offer a wide variety of loads from simple loads to more complex loads, which allow shippers and carriers to examine those loads and then set in motion potential negotiations for hauling said loads. Yes, we charge a fee for being able to see those loads and act on those loads, but we are not involved in securing those loads. "Uber" is a term that gained popularity and is really overused. It really has no place in the trucking industry. While Uber is simple, trucking is not. Digital freight matching is a good concept, but still needs to be refined before being accepted by the industry. Tried and true methods are still the strongest and we will continue to offer those options as long as the industry needs them. Scott Moscrip, Founder and Chairman FROM THE DESK OF SCOTT trucking is not an uber app 4 IT MAGAZINE Vo l . 1 0 , N o . 5