Uber for Auto Transport? Could be a Possibility
Apparently, Uber is getting into the freight industry.
The ride-sharing company Uber has unveiled its newest plan: an app designed for owner-operators to cut out the middle man (the broker) and connect owner-operators directly with customers.
The app and the service are mostly designed for “dry van and reefer trucks” (reefer in this context means refrigerated, by the way). This services comes on the heels of Uber’s purchase of autonomous trucking company Otto last year.
Right now, auto shipping services aren’t really the focus of Uber’s new project. But that doesn’t mean that Uber for auto transport won’t become a reality. What’s really funny, though, is that Uber’s plan was originally to just connect truckers with freight. But now it seems that Uber might actually have its own trucks down the line.
Article Overview
Uber for auto transport?
If you’ve ever used Uber, you know that it can be a pretty handy thing. Drink too much at a party? Get an Uber! The ride-sharing company has become a major player in the whole “find a ride” business, to the point where taxi companies are getting upset.
But what does this have to do with auto transportation services?
Uber for auto transport is an interesting concept, but it’s not what this new system is designed for. So right now, chances are Uber for auto transport isn’t going to be showing up any time soon.
And even so, the idea of Uber as a freight company isn’t really solid quite yet. There are a lot of detractors wondering just how it’ll upset traditional freight industries, and with how Uber has affected traditional taxi companies, it may be more severe than we think.
Or it could fall completely flat.
Either way, it’s an interesting idea, but let’s take a look at what Uber for auto transport might mean for customers and companies alike.
What Uber for auto transport might mean
If Uber gets into the vehicle shipping industry, we could see a decline in traditional brokerages.
Uber seems to want to act in a way that cuts out the middleman. And while that’s traditionally not a bad thing, at the same time, it could disrupt a lot of people in the industry.
It would be a big boon for carriers if they could simply find freight through an app, and this could mean more loads get shipped more quickly. However, it could mean that less-frequented routes end up losing out on freight.
Think of it this way: there’s not a lot of Uber services in rural areas, even nowadays. They exist, but there’s not as much choice. Now, compare that to Uber in a major city or metropolitan area, and the service is much more built up.
But that’s with traditional vehicles hauling people around. What about when you move into the car shipping industry?
If that were to happen, big cities and metro areas – where carriers are now – could see the biggest impact. We could see lower prices due to more freight, but we could also see a decrease in competition as carriers would have direct control over their loads. With traditional brokerages in the mix, there’s a balance of power that results in lower costs for most everyone. Not only that, but rural routes still see demand with traditional brokers because of how the entire system is designed.
If Uber moves into the auto shipping industry, that could change.
Update from the writing team
As of June 2021, Uber’s freight division is up and running, using their own app for customers to find carriers. But it’s not as impactful on the auto transport industry as we first assumed it would be.
While Uber has launched their app, it seems that it hasn’t encroached on the car transport industry very much. On the whole, the freight that is being moved through Uber’s freight app seems to be smaller commercial goods and seems to be supported by local moves more so than interstate ones.
This isn’t too surprising. Shipping cars is not something drivers can just do – they have to have the proper setup for it. They need a truck powerful enough to move such heavy freight and they need special trailers that will secure vehicles properly. Considering the auto transport industry already has well-entrenched methods of connecting shippers and trucks, it’s to little surprise that few if any car transporters are using Uber’s freight system.
This could change in the future, but after four years, nothing has really changed in the car transport industry, and we don’t see things changing any time son.
But in the meantime…
Of course, the change is going to take time. And it may not even happen. But it’s something to keep an eye out for. And in the meantime, if you’re looking to ship a car, make sure to fill out our free quote request form. It’s free and easy, won’t take more than a minute or two, and nets you a free quote and estimate right away. You can also contact an agent any time at 800-930-7417 if you have questions or concerns, want a quote over the phone, or are ready to take the next step in your auto transport journey.
Since 2007 Dave has written all the content and blogs for American Auto Shipping and during this time added the duties of customer support and transport logistics.
He currently resides in Washington with his three kids and their mom and cat. A fan of Marvel movies and good stories, when not shipping cars Dave can be found working on his novel, enjoying a good book or playing some tournament HALO.
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