Digital Start-ups like Uber Freight Disrupt Market but Industry is Responding

Digital Disruption in Logistics

The introduction of digital apps like Uber are positioned to cause disruptions in the on-demand freight business. However, many myths exist, and some companies say the competition has only motivated them to strengthen their logistics operation.

Uber, the popular ride-sharing app, launched Uber Freight this year with the ability to connect truck drivers to haul cargo long distances. Drivers use the mobile app to find truckload freight meeting certain parameters such as destination and time of pickup, among other factors. They then can book the load and get instant confirmation of the booking, as well as the rate. Payment shows up within seven days.

How the Industry Is Responding

While Uber Freight can do many things, there are also many things it can’t do. For one, the majority of freight available to be moved is within Texas. Secondly, Uber says the only type of freight it is moving is 53-foot dry van and reefer, although it promises it will be “expanding to more types” in the future.

Finally, one of the greatest misconceptions is that Uber Freight, like its ridesharing parent company, works with drivers not affiliated with a commercial fleet or that Uber operates its own fleet of trucks. The reality is that the app is only available to drivers who work with approved carriers. Drivers are asked to submit carrier onboard documents for approval and carriers must have insurance, a motor carrier number, and at least a satisfactory rating. And no, Uber does not have its own fleet.

Freight brokers say that Uber Freight does not have the bandwidth to handle the many variables involved in transporting cargo, such as handing different deadlines, types of freight, and methods of transport. C.H. Robinson Worldwide of Eden Prairie, Minnesota, the largest freight broker in the U.S., says that its $1 billion investment over the last decade has resulted in updating and expanding its freight-hauling and logistics technology to make sure its operation is faster and more efficient — In other words, immune from startups like Uber Freight.

According to Trucks.com, brokerages like C.H. Robinson are busy automating certain procedures that used to be handled manually, and are actively showing customers that they have a better grasp on the industry than digital newcomers just stepping into the market such as Uber Freight, Convoy, Loadsmart, Transfix, among others. The messaging is that experience counts, as do partnerships that have been years in the making.

“The question becomes how comfortable are shippers dealing with startups that are heavy on technology and a little light on knowledge of moving freight,” John Larkin, a transportation and logistics analyst and managing director at Stifel Equity Research. “If my job depends on getting freight delivered, am I inclined to give a load to someone I don’t know with slick technology or am I better off giving it to a C. H. Robinson?”

How has your company responded to the increase in digital startups in the logistics field? Have you increased investment? If you are a shipper or a carrier, have you used Uber Freight and, if so, what was your experience? Tell us in the comments below.

Frequently Asked Questions

What qualifications do carriers need to work with Uber Freight?

Carriers must have proper insurance, a valid motor carrier number, and at least a satisfactory safety rating. Drivers need to submit carrier onboard documents for approval before accessing the platform. This ensures only legitimate commercial carriers can use the service, not independent owner-operators without proper fleet affiliation.

How quickly does Uber Freight pay drivers compared to traditional brokers?

Uber Freight pays drivers within seven days of completing a load. This is significantly faster than many traditional freight brokers who may take 30-60 days to process payments. The quick payment schedule is one of the platform’s main selling points for attracting drivers to use their app.

Why are established freight brokers not worried about Uber Freight?

Established brokers believe their industry experience and established partnerships give them advantages over tech-focused startups. Companies like C.H. Robinson have invested billions in technology while maintaining deep freight knowledge. They argue that complex logistics require expertise that new digital platforms lack, especially for specialized freight types.

What types of freight can Uber Freight currently handle?

Currently, Uber Freight only handles 53-foot dry van and refrigerated (reefer) loads, with most freight located within Texas. The platform has promised to expand to additional freight types in the future, but it’s significantly limited compared to full-service brokers who handle various equipment types and specialized cargo nationwide.

Should shippers choose digital platforms over traditional freight brokers?

The choice depends on your specific needs and risk tolerance. Digital platforms offer user-friendly technology and quick booking, but traditional brokers provide extensive industry knowledge, established carrier networks, and experience handling complex logistics challenges. Consider factors like freight complexity, relationship importance, and your comfort level with newer technology providers.