Why Uber And Amazon Are Going After Truckers

My name is Tiffany Mendez and
I drive trucks for a living. I got into trucking in the military. It was just one of those
things way back in 1990…gosh, I don’t want to say the
year. But I was a Seabee. It was one of those
adapt and overcome type things. I got thrown in a seat
and I never got out. In 2018, about 3.5 million people were employed as
truck drivers in the U.S., but with the explosion of e-commerce, the
demand for drivers has been outpacing supply. For instance, in 2018, the U.S. trucking industry was short,
over 60,000 drivers. If the trend holds, experts predict this number
could be up to 160,000 by 2028. One of the biggest misconceptions that people
have about truck driving is that they believe that it’s easy. They think that
we put the key in ignition and we go. But a lot boils down to
the whole plan of the trip. When I start my day, I only have 14
hours to complete up to 11 hours of driving. So I have to put in
restroom, showers, washing, eating, all of that. In prior life, as a driver, you know,
when I’m waiting on a dispatcher to dispatch me, I’m waiting two, four hours for
them to tell me, hey, we don’t have a load for you until tomorrow. You know, as to where I could have
washed clothes, I could have gone went out and did something, you know, with my life,
per say, and now I have control over that. Mendez says she now has more
control over her schedule thanks to Uber Freight. It’s an online platform that
matches truckers with shippers looking to move cargo from one place to another. This is a huge industry that is the
backbone of the economy, but it’s also highly, highly inefficient. It is mostly still running
on fax, phone and paper. We’ve a lot of disconnects of how
to actually match shippers that are looking for truck drivers to hold their freight
with truck drivers that are looking for opportunities to carry those
shipments on their trucks. Uber getting into the trucking industry could
be a potential goldmine for a company that’s been struggling
to turn a profit. If you look at the size of the opportunity,
this is up to 15 percent of the global economy. So lots of potential and we
are still in the very early days for us. The trucking industry drew in
revenues of $796 billion in 2018, with trucks moving 71 percent
of the nation’s freight. Compare that to the global ride hailing
market, which in 2017 was valued at just $36 billion. Surging cargo volumes in 2018 gave trucking
companies a lot more power in terms of price. That, in turn, drove up
costs for the shippers and manufacturers and retailers leading to their margins being
squeezed, and that can eventually weigh on growth for them. Uber saw
an opportunity to come into the marketplace, digitize it, and make it more efficient
by applying the same sort of business model that it has
applied to ride-sharing. Uber launched Uber Freight in 2017 and
the program has since expanded to 48 states as well as
the Netherlands and Germany. Uber says thousands of shippers and almost
half a million truck drivers use the platform. Typically, shipping companies use freight
brokers as a middleman to match them with available truckers, taking
a commission in the process. Uber Freight removes the need for a
middleman by allowing truckers to choose from a list of available jobs and the
routes that they need to take to complete them. Drivers also get information on what
they are hauling, as well as how much they’ll be paid. Once they make
their delivery, the truckers can find their next job right from the app. Earlier this year, Uber Freight also launched
a desktop portal for larger fleet operators. One of the benefits of having
a platform like this is giving people the flexibility to drive when they want
and having a lot of certainty about when they’re driving, where they’re driving,
what routes they feel most comfortable doing, gives them flexibility in how
they get there and when they work. And like Uber’s conventional app,
Uber Freight allows drivers to rate facilities out of five stars. Truckers can actually rate the facilities of
the shippers that they go to, the manufacturers that they go to. So things like whether they have a bathroom,
whether they have a place to park your truck at night and get some rest. How long you have to wait. These are things that are really
important to truckers and may determine whether or not they want
to take your cargo shipment. To improve efficiency, Uber Freight also
partnered with an affiliate company called Powerloop that allows
carriers to share trailers. So far, Powerloop is
only available in Texas. The biggest issue for the small guys in
this industry is the fact that they only have one trailer
connected to the truck. Which means, they have to wait every time
they enter a facility to be loaded and unloaded four, five, six,
seven hours at a time. What we allowed them to do is actually
tap into a trailer pool, that we manage for them, so when they enter a facility,
they can drop their trailer, hook a trailer that is already loaded,
and get on the way. Not having to wait in a facility
and constantly keep them utilizing their truck and being paid more for their driving
time versus not being paid waiting in those facilities. Powerloop is a truck driver’s
dream because if I can just pick up a loaded trailer and drop off
a loaded trailer and keep moving, then my wheels are turning and I’m
continuing to earn, you know. So that again changes
the industry totally. And the industry does need to change
because the driver shortage is only compounded by the fact that many of today’s
truck drivers will be aging out of the workforce. The Bureau of Labor Statistics
estimates that the average age of a commercial truck driver in the U.S. is 55 years old. One way Uber says it’s attracting drivers
is by giving them incentives that reduce their cost of operation. We actually have a loyalty offering, Uber
Freight Plus, which is giving them discounts on fuel, on maintenance, on used
trucks, on the health insurance, on their phone bills to really level the
playing field and allow those truck drivers to operate with the scale of
a big fleet, accessing all of those discounts. But does Uber
Freight make financial sense? Uber’s latest earnings report showed that
the company’s “other bets” category, made up of Uber Freight and
Uber’s mobility services like bike-sharing, brought in $340 million in revenue through
the first half of 2019. That’s more than three times the revenue
from the same time period last year. But during this time, “other bets”
losses have also been increasing, jumping from $48 million to $193 million. Overall, Uber reported losses
over $6 billion. Uber is applying the Uber strategy, growth
at all costs to the freight industry. It is undercutting the competition in
terms of prices to gain more market share. So what you get, is a
very fast-growing revenue stream, but a lot of losses. Morgan Stanley, in fact, put
out a report that estimated that Uber passes on 99 percent of its
revenue to the trucking companies. To give you an indication of what the average
is in the industry, it’s 80 to 85 percent. So Uber giving 99 percent of
revenue to the trucking companies is a big deal. And it really tells you that
profitability is likely a very long way off. Uber Freight is not alone in
its quest to digitize the trucking industry. Trucking and freight technology companies
raised a record $3.6 billion in venture capital
funds last year. One company that nabbed some
of this funding is KeepTruckin. The San Francisco-based firm uses hardware
and software to help drivers and fleet operators manage their
vehicles and cargo. KeepTruckin says it works with over
250,000 trucks and 55,000 trucking companies. But the company says it’s not
exactly the same as Uber Freight. Our hardware and software is used
by trucking companies to actually manage their drivers, to improve
safety, to improve efficiency. And through that connectivity we’ve built
with such a significant base of capacity, we are now building an
open-freight marketplace, where any party that has loads and that needs
access to capacity can participate. And so while they’re building a
private freight brokerage, we’re building an open-freight marketplace. Other players in the market include
companies like Transfix and Convoy. Even Amazon launched an online, beta, freight
service of its own in 2018. The service is currently only available
for shipments in five states: Connecticut, Maryland, New Jersey,
New York and Pennsylvania. Like Uber Freight, Amazon created an app
it calls Relay, to give truck drivers additional freight information, including route
tracking and expedited check-in procedures at warehouses. But the competition doesn’t
seem to rattle Uber. In fact, the company announced it’s investing
$200 million per year in its new Uber Freight headquarters in Chicago. We’re really the only one that has the
Uber scale, the Uber knowhow in terms of transportation technologies, the capital, and the
stamina to actually invest in this market for the long run. So will Uber Freight be the
answer to Uber’s quest for profitability? Uber Freight is a much smaller piece
of the business right now, even though it’s growing very, very quickly
in terms of revenue. It is much, much smaller than its
ride-sharing and its Uber eats business, which investors tend to focus on. That’s not to say that the trajectory
of Uber Freight is very exciting and could make up a larger portion
of the business going forward. In fact, some people even say that
it could represent the Amazon Web Services of Uber. What that means is that when
Amazon Web Services started, it was a very small part of Amazon and
it grew into the profit engine. So some implied that perhaps if Uber Freight
really takes off, it could be the money maker and it could even
overshadow some of its other businesses. On the surface, Uber Freight is a
better business than Uber the ride-hailing business. It faces less of an uphill
battle to get to profitability than the ride-hailing business does. But on the other side of the coin,
I think the ride-hailing business has more potential to be a
blockbuster type business. If they can reach profitability just because
of the scale of the business.

Posts created 2802

100 thoughts on “Why Uber And Amazon Are Going After Truckers

  1. This is stupid. If you constantly haul cheap freight, you take yourself out of the business. Fixed costs of operating a truck does not favor cheap freight runners.

  2. I'm reading that Uber will pay 99% of something. The question is how many subsidiary companies did the broker the load through before it got to Uber so that you can get your 99%. 99% of nothing is still nothing.

  3. Simple: boycott uber freight.

    If you wanna have an idea of what's gonna happen to truckers, after uber takes control over the freight, just look at what cab drivers are going through.

    O/O will be paid $.25/mile.

    Don't let'em take over the trucking industry.

  4. So the new bill that is going in affect the first of the year is called Assembly Bill , AB5 this is why the state of California will be hitting the drivers and those drivers are working for Uber, and not only that three other states are looking at this bill That Governor Gavin Newsom has signed they are leading by example way to go California

  5. Most truck drivers don't know their cost per mile. Simple math would show uber Amazon are just taking advantage of your stupidity. Drivers your one break down from bankruptcy. These rates will keep you struggling. Take time educate yourself.

  6. Drivers are overworked underpaid and under appreciated, always have been and always will be it’s just the nature of the job.😎

  7. First it's only a shortage with American drivers- because I certainly see a gang of foreigners driving- second over half of drivers can't operate the equipment right- there's a difference between A TRUCK DRIVER – AND A TRUCK OPERATOR- LEARN IT

  8. Good luck trying to get good drivers to haul Freight and stand by while you cheat them further from their wages. Uber is mistaken if they think we are stupid enough to haul Freight for them.

  9. What hurts our industry is The Pilot Program under NAFTA it allows mexican carriers to deliver good in and out of our country …it dramaticlly drops our rates here for us. If Mr Trup was to do something good for the country, he needs to shut this program down. 🙄

  10. Low pay that hasn’t kept up with inflation in 30 years. There is no driver shortage, just a shortage of good jobs. This video is bs. All Uber is doing is harvesting data for their autonomous trucks. Customer service with Uber is worse then a mega carrier dispatcher. Entire article is bs.

  11. Nice infomercial, pure bs. Uber freight sucks and all they are doing is harvesting data for autonomous trucks. Rot in hell uber🤷‍♂️

  12. Uber is a cancerous SCAM in all its manifestations and is being hunted out in most countries. Look at the people who are over this modern form of economic slavery. Look at them and their record and their motives and how they do 'business'. Then see if 'working' for UBER is the answer.

  13. They both have pledged to eliminate the driver asap but the stupid drivers are helping them finance it. If your pulling for either your an idiot

  14. This is complete propaganda. Guaranteed this is a paid ad. Uber Freight is garbage lopane crap that cannot sustain a truck. She claimed now she doesn't have to wait on a dispatcher because she does it herself. That's how it usually goes when you do something yourself you are the priority and it gets done faster. That's how it is always been in this industry. Uber Freight is absolute bottom of the barrel, like some other very popular load boards by the time it gets to them it's because hundreds or thousands of the truckers who companies would prefer and Trust to move their load have turned it down because it doesn't pay enough.

  15. It'll ALL b self driving trucks in 5 yrs. Uber & amazon have been buying self driving trucks & technology for yrs. Welcome to the new world. Everything wont work as they plan tho!

  16. CNBC, how much did Uber pay you for this advertisement? Ppl, when super rich white men want to make money, they do these stories on the major TV networks. Been there done that. Oilfield, towing, freight, autos, hazmat, etc. Sucky pay for the sacrifice. Based on the amount of comments, why doesn’t CNBC do a story on how trucking sucks.

  17. Honestly all of this helps the little guy, I think it’s great. Just like everything else competition drives up wages for the little guy.

  18. Throwing the b.s flag down …what has driven the cost up is over regulation greedy brokerege firms and crazy super expensive epa and carb requirements and dont forget folks uber and amazon are constantly trying to push vehicles that drive themselves which outs you out of a job

  19. I am telling to my fellow Americans, Yang will be best for y'all. Check him once. He is here to save all including truckers, retail, call centers etc, which will be hit by automation. One more thing, dont forget $1000 per month for all citizens #yanggang #yang2020 Love from Toronto

  20. Mean while Elon musk is trying to make fully autonomous trucks. With means no truck drivers. I think in the the next 10 years most jobs are going to be technology base jobs. In ways it as already happening.

  21. There's NO such thing as a driver shortage. There's however, high turnover rates. Until it's recognized as such. It's not going to be addressed. The driver shortage deal is a gimmick and strategy (greed). To hire foreigners to pay them peanuts, " Hey, look, another job Americans won't do!". And for companies pushing for automated driving trucks. To get financial and other backing from government and other entities; And to convince the public.

    There's no shortage of drivers. Most trucking companies are CDL schools too. They're pumping out hundreds of new drivers daily. It's a hard job, there ARE {High Turnover Rates}. At over 90%!!! THAT'S HUGE!

    So there needs to be conversations on how to be fair to drivers. In pay, and home time. You can rotate drivers, give them the home time they request. And keep a business thriving. But companies see drivers as machines, not humans. And they don't care, because the demand is high. There's always someone else that will do the job. And when that person gets tired of being mistreated. Another one will take the job. So that's how companies handle it. And that's why there are so many open positions. High turnover rates!

    Wise up, people!

  22. Ppl please DO NOT let Amazon and uber take away our jobs. I just got in the trucking business and I am excited in have a career for the first time in my life.i use to do uber lyft and Amazon in my own car and both of these company will chew you up and spit you out. They drain ur pocket and make you expendable. These companies is the next generation to making our wages even lower.

  23. Uber just taking another picec of the truckers pie. Brokers take the first piece then uber takes the second piece. truckers get the smallest piece and they do all the work and provided the equipment to do it.

  24. The biggest misconception about trucking is that it pays good. So you can bust your butt for 10-15 years and retire comfortably. And given this supposed 60K truck driver shortage you would think it must be. Supply/demand, you know. Nothing is further from the truth in this corporate run world. There is no shortage of drivers, there is shortage of pay.

  25. Uber will go bust. It is unsustainable. Self driving trucks (in fact self driving or self producing anything) is a corporate (and shareholders) wet dream. Thankfully self driving trucks are not going to be here in the short term future. Uber will be long forgotten by then.

  26. People and governments handed power to corporations that nobody’s voted them to protect people’s interests, so they will think for themselves, while we vote politicians to protect us.

  27. And you're talking about whole load drivers, what about LTL drivers ??? That freight don't get off and delivered by itself,! The driver has to unload and deliver!!!
    "Walk a mile in my shoes"!!!
    You'll be surprised!!

  28. This lady nailed it. It’s like food delivery also. You’ll be waiting until you get orders and you lose hours in a day and gas.

  29. Swift tried to do what Uber is doing now, the difference is that Swift could buy smaller companies to throw their debt onto and close.

    Swift also failed at it.

  30. So you share a trlr. Who fixes the flats missing or broken light . so many things don't work. Shortages are due to low pay and to many hours

  31. That's BS there is no driver shortage it used to be a high middle class job . Uber is another crooked scam trying to get in the trucking industry don't fall for it.
    Your not home for weeks or months and dealing with the shippers , receivers, DOT , Crooked trucking companies, Bad weather , traffic , cars playing games the pay now is not worth it. The new drivers find out it's not what they expected it's a hard job it's not just tooteling down the road. Deregulation happened in the 70s and the final nail in the coffin was in the early 80s with Reagan we need to fix it or it's more of the same .

  32. Shortage is because low price of miles payed to truck drivers, and USA, and canada being countries full of oportunities so the youth have so many options to choose for their future

  33. A year ago there were calls for truck drivers that would pay $50,000 a year, a month later, trucking companies were layoff their drivers!

  34. More trucker shortage BS? Basic middle school economics class. Supply low, demand high, price goes up. The fact that every broker I deal with tells me "you dont like the price, no biggie , somebody will haul it." Still have yet to see freight rotting on a loading dock because they dont have a truck to put it on.

  35. Uber killed taxis and now they're going after trucking. It's all about lowering wages in order to extract the maximum amount of profit for the investors and top management.

  36. So using uber the drivers remain engaged by paying like 35% to uber only keeping 65% as earnings for each haul for themselves ,then there is the risk ID getting blocked permanently !

  37. The one good thing I can say is that it removes the broker. The broker has been robbing drivers for decades. An independent contractor need only deal with the shipper and the consignee. That middle man is completely unnecessary today.

  38. I got Uber freight app and my experience is Uber got very very low paying loads…I never saw a reasonable price load on Uber. I hope they pay better in those loads.

  39. Well… Uber and Amazon, are owned by con men. And pray on people's inability to understand or do simple math. I would Call Trucker's… They're next to mark.

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