A Sea Change in Freight

Spot-market freight received another boost from Uber:
  • $600 million investment 
  • Hiring 2000 people
  • New “Freight” HQ in Chicago (where it can find qualified people from Hub, Coyote, etc.)
 
At the same time, Uber is enhancing carrier efficiency:
  • Providing trailers for drop and hook (they call this Powerloop and is limited to TX and OK)
  • Allowing carriers to book the next load (backhaul?) at the same time as they accept the current shipment
  • Paying in 7 days
 
Some numbers:
  • Started 2017
  • Did $359 million in 2018 which is less than 0.3% of the $87 Billion trans business (Source: Armstrong & Associates)
  • Spend is ~50% of revenue (i.e. they are preparing for much bigger revenues)
 
My take:  this is a Sea Change in the freight market!