Thanks to Amazon Prime and other door-to-door delivery services, the consumer’s general expectation is that orders should move ultra-quickly. The transportation and shipping industry is making necessary adjustments. In many ways, they are adjustments of scale. That is, trucking companies that are best equipped to deal with urgency may be the little ones—those with just a handful of local trucks that can be more nimble, flexible and immediately responsive to customer demands.
If size matters, then bigger may not always be better—especially when dealing with traditional freight transportation models that can get bogged down with brokerage services and third-party logistics. In contrast, Uber Freight, which launched in May 2017, simplifies things by matching smaller trucking companies with loads that need hauling. Much like the popular Uber car-ride app, this trucking app helps drivers find freight instead of passengers. Currently operating mostly in and out of Texas, Uber Freight is driving new discussions among truckers and shippers who consider flexibility as a dominant factor for success. Drivers who are geographically close to pending shipments can quickly consider whether or not to take each job. Smaller trucks with multi-stop routing and fewer traditional dock deliveries comprise an environment that may be suitable to smaller businesses with smaller fleets.
Uber Freight boosts small trucking companies
“Uber Freight is the Uber for trucking. It provides one-touch booking for drivers, which is new to the industry,” Uber Freight Director Bill Driegert told Transport Topics. The goal, Dreigert said, is to “make the lives of truck drivers better” by making it easier to find good freight, by simplifying transactions and providing upfront pricing and quick payment for their work. Simply put, it eliminates the middle man.
The Uber Freight model brings good news to small trucking companies who sometimes have difficulty breaking into longstanding contracts to find hauling loads. They often have an even harder time attracting financing from traditional banks in an environment of driver shortages and complicated federal highway infrastructure and legislation.
In the summer 2017 issue of Truckload Authority, Rob Penner, chairman of the Truckload Carriers Association and president and CEO of Bison Transport, said of previously slow economic growth in the trucking industry, “… There are many private companies on the block and when you delve into their businesses, you can see that they are not performing well. Investment in those businesses has not kept pace and typically it is because they are undercapitalized. In my opinion, shippers do have reason for concern. Some segments of the industry, like flats and refrigerated, are starting to get busier now and we expect it to continue to ratchet up, especially with the ELD [electronic logging devices] mandate on the near horizon. There are better times ahead for most well-run organizations.”
With proper support, transportation companies are poised to provide agile, responsive, and smaller capacity shipments at a faster pace to get items from here to there—quickly.
Crestmark keeps trucking companies on the road
Crestmark specializes in financing for small- and medium-sized trucking companies across the country by providing them with working capital to keep vehicles and drivers on the road.
Crestmark sees tremendous growth potential in the transportation industry, which is largely based on small-business models that can remain adaptable as they grow their fleets and add drivers to meet new demands.
With a thorough understanding of the ever-changing transportation industry, Crestmark excels in small-business lending, small-scale transactions, and small-business growth. Offering specialized services including same-day funding, fuel advance options, and industry expertise, Crestmark knows trucking.
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