Uber for Trucking: Ushering in a New Era in the North American Freight Movement & Logistics Market
This trucking model can reduce empty miles travelled, lower operating costs, and improve asset utilization and productivity, finds Frost & Sullivan
This trucking model can reduce empty miles travelled, lower operating costs, and improve asset utilization and productivity, finds Frost & Sullivan
MOUNTAIN VIEW, Calif., Oct. 27, 2015 /PRNewswire/ -- The arrival of Uber for trucking or mobile-based freight brokering is ushering in a new era in the North American trucking and freight logistics market. Currently, inefficiency plagues the freight movement and logistics market, with approximately 20 billion empty miles travelled per year in the trucking industry. Mobile-based freight brokering will enable drivers and fleets to mitigate these inefficiencies in their trucking operations. In addition to reducing the empty miles travelled, mobile-based freight brokering technology will help lower operating costs, improve fuel efficiency, boost asset utilization, and enhance resource productivity.
Photo - http://photos.prnewswire.com/prnh/20151026/280630
New analysis from Frost & Sullivan, Uber for Trucks: Executive Analysis of the North American Mobile-based Freight Brokerage Market (http://www.frost.com/sublib/display-report.do?id=NF61-01-00-00-00&src=PR), finds that 16 percent of third-party logistics will be enabled through mobile platforms by 2025.
For complimentary access to more information on this research, please visit: http://bit.ly/1LxAJ7O
"For the North American trucking industry, mobile-based freight brokering provides the opportunity to enhance the productivity and efficiency of both shippers and carriers," said Frost & Sullivan Automotive & Transportation Senior Industry Analyst Wallace Lau. "Mobile-based platforms also have the potential to minimize the carbon footprint through improved freight logistics and reduce driver-shortage strain on the trucking industry."
Despite these benefits, traditional freight brokers in North America presently command 99 percent of the market as they have already built a strong reputation and relationships with existing fleets. This, along with the saturation of competing freight brokerages, rise of on-demand delivery services, and lack of a vast shipper and carrier network, is proving to be the biggest hurdle to the mass adoption of mobile-based freight brokering.
Mobile-based freight brokers are strategizing to grow their network by offering as much value as possible for free to customers on their apps. In addition to strengthening their freight brokering capabilities, mobile-based freight brokers are bundling transportation management solutions together to attract customers.
"Early demonstration of the tangible benefits achievable through on-road implementation of mobile-base freight brokering solutions will definitely be worthwhile," noted Lau. "Strategic partnerships with market participants such as truck original equipment manufacturers and telematics providers will also be helpful to enhance the performance attributes and audience-reach of mobile-based freight brokering solutions in North America."
Uber for Trucks: Executive Analysis of the North American Mobile-based Freight Brokerage Market is part of the Automotive & Transportation (http://ww2.frost.com/index.php/research/industry/automotive-transportation/) Growth Partnership Service program. Frost & Sullivan's related studies include: Executive Outlook of the Global Medium- and Heavy-Duty Low-Cost Truck Market, Global Overview of Truck Video Safety Solutions Market, Global Overview of Truck Video Safety Solutions Market, and Executive Impact Analysis of Big Data in the Trucking Industry. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.
Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.
For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?
Contact Us: Start the discussion
Uber for Trucks: Executive Analysis of the North American Mobile-based Freight Brokerage Market
NF61-18
Contact:
Clarissa Castaneda
Corporate Communications – North America
P: 210.477.8481
F: 210.348.1003
E: [email protected]
SOURCE Frost & Sullivan
Share this article