Fleet Management News & Business Info | Commercial Carrier Journal
Issue link: http://read.dmtmag.com/i/846064
28 commercial carrier journal | july 2017 A trucker-centric future Does the 'Uberization' of trucking start with the driver? T he trucking and logistics industry has been inundated by well-funded startup brokerage firms. Many of these have developed software to make freight and capacity available to carri- ers and shippers on demand. Ironically, these on-demand freight models seek to limit the role of an intermediary in freight transactions. Some refer to this "de-intermediation" movement as the "Uberization of trucking." In theory, technology should make it as easy to ship freight across the country as it is to buy an item from Amazon or hail a ride across town with Uber's app. Automating truckload and less-than-truckload freight transactions may not be that easy, but startups believe the prospect is within reach. By connecting all parties in the cloud and applying powerful algorithms, these on-demand freight models can match shipments with capacity. They also can eliminate faxing, emails, phone calls and other touch points in the lifecycle of shipments. While high-tech brokers want to make freight transactions more efficient for humans, their challenge is to create freight marketplaces that balance both sides of the supply-and-de- mand equation. California-based startup Next Truck- ing opened an on-demand freight shipping business in December 2015. The company planned to offer coverage in all contiguous 48 states, but soon realized that motor carriers quickly lost interest in freight that didn't meet their specific lane preferences. Next Trucking refocused and made its technology and busi- ness model more trucker-centric, says Lidia Yan, chief executive officer and co-founder. Owner-operators and small carriers can use a mobile app and online platform to enter their route and rate preferences. Next Trucking uses this trucker-specific information to propose quotes to shippers with freight in drivers' lanes of interest. Yan comes from a family business, iDC Logistics, which distributes TVs and consumer electronics from major U.S. ports to inland retailers. Next Trucking leverages iDC's contacts in the electronics industry to focus on building its business one lane at a time. To haul freight for Next Trucking, drivers are required to use its mobile app that automatically captures real-time shipment location using the GPS in smartphones. The app also has a document capture feature to upload proof-of-delivery receipts to expedite freight payment. By using the online platform, carriers gain a free fleet man- agement system to track their shipments and monitor other areas of their business performance. Some truckers who work with Next Trucking put 100 percent of their capacity into the platform, Yan says. Looking ahead, Yan sees Next Trucking expanding its area of focus from California to New Jersey and Texas, two other states with large ports. Both markets have high volumes of inbound and outbound shipments for the compa- ny to continue building round trips for drivers who are based in those areas. "We focus on drivers," she says. "Our goal is to build a huge trucking fleet." MAKING THE LATEST TECHNOLOGY DEVELOPMENTS WORK FOR YOUR FLEET BY AARON HUFF technology WELL-FUNDED: The trucking and logistics industry has been inun- dated by startup brokerage firms. SMARTER MATCHING: Some believe the prospect of automated freight transactions is within reach. THE RIGHT EQUATION: The challenge is to create freight marketplaces that balance supply and demand. AARON HUFF is Senior Editor of Commercial Carrier Journal. E-mail ahuff@ccjmagazine.com or call 385-225-9472. INTERESTED IN TRUCKING TECHNOLOGY? Scan the barcode or go to www.goo.gl/Ph9JK to subscribe to the CCJ Technology Weekly e-mail newsletter. Next Trucking's mobile app allows preapproved truckers to book freight instantly.