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.

100 Replies to “Why Uber And Amazon Are Going After Truckers”

  1. I remember the days of pre-deregulated trucking, where everyone made money, & freight damage(s) were almost nonexistent.. Ahh, memories..

  2. This is a joke. What they're not going to tell you is the DMV, and more importantly highway patrol at the scales DO NOT let you haul Anything without paperwork

  3. Uber's history with drivers income is troubling. Uber ride share drivers are now taking home a smaller percentage of their fares then they once were. Uber is keeping more in the name of operating costs. I see this as an eventual consequence to truck drivers who ally themselves with Uber. Driver efficiency is a problem. Neither shippers or consignees give a damn about driver times and profitability. I fear Uber is not the ultimate answer based on past performance.

  4. The truck driver does the majority of the work and makes next to no money. There is not a driver shortage, there is a pay shortage and the big corps are hording all the profits making the drivers do all the hard work. It makes no difference if your driving a big rig, a local delivery truck, or some kind of taxi, your all getting screwed.

  5. Uber is a bait and switch company model. They lure you in with good pay then cut your feet off. Ask their ride share drivers if they are happy. Uber destroyed the taxi industry and now they will destroy the trucking industry.

  6. Good. The majority of truckers tend to drive like crap, anyway, atleast in the midwest. Certain states have even created laws restricting the use of the passing lane for traveling. Do truck drivers pay attention to it? No. Are you currently passing anyone? No = Get over. Is the right lane wide open? Yes = Get over. Is there a steep incline coming up? Yes = Get over. Are 1 or more vehicles following closely behind you? Yes = Get over. Not turning left in 1 mile or less? Yes = Get over. I see distracted or self-absorbed truck drivers klusterfuking the passing lane, refusing to relinquish the passing lane to those who wish to use it for its' intended purpose every day. What's the most prominent rule that has posted signs plastered all over America's highways? It's "Slower Traffic, Keep Right". A semi-truck is 100% "Slower Traffic" from the day it was put together, so you should be spending 95% of your time in the slow lane a.k.a. the travel lane. Also, STOP trying to pass the slower semi when there are multiple people trying to get around BOTH of you in cars that can accelerate at an acceptable rate of speed. You waiting 2 minutes for 30 cars to break free and forge ahead makes way more sense than 2 semi's holding 30 cars back for however long it takes the two of you to get your heads out of your arse's and navigate one another effectively. ::drops mic::

  7. Pay drivers fairly and you can start to fix this so called shortage. New drivers coming into the game get screwed hard by companies who pay nothing with crap benefits. Once drivers realize this they leave. The trucking game is ruthless and these companies want their freight moved at the lowest rate possible. They dont care one bit about the driver.

  8. I clicked on this thinking they were about to talk about how Uber was among other companies leading the way to autonomous trucks which will ultimately put YOU the trucker out of a job!

  9. I hope I'm wrong but I doubt it. In the beginning it'll be good for drivers then after about 5 years it's going to get really bad for drivers. Driver wages are going to plummet particularly owner-operators, they're going to offer leasing to owner programs. They are going to turn lease owner operators into indentured servants. Ultimately every driver is going to end up being an owner operator with all the same financial responsibilities except for brokering and less money to take home. Uber company drivers will have preference.

  10. I smell a oligarchy on the horizon they're going to offer cheaper rates to shippers and receivers which will get them all the loads and a monopoly on brokering. Driving down earnings for drivers but uberand its shareholders are going to make billions until regulations catch up.

  11. If Uber pays drivers more they have the potential to be a real powerhouse drivers with flock to Uber but but if they operates with no integrity and exploit weak regulations it can be catastrophic for the truck driving industry forcing and ushering in autonomous driving trucks

  12. Worked out of chicago independently with multiple companies. Pay was around 50cpm. On 3rd year my tax guy told me mcdonalds employees make more than me. He was right I was dependent on credit cards and paycheck advances and now I'm stuck in dept and my truck is totaled in an accident. Will never drive for anyone ever again. I rather do the hourly thing where I can live healthy, eat healthy, sleep in my bed every night and not suffer a hear attack every year when I do taxes.

  13. Loss of money…wtf….they just get work for you what money are they losing all u need to work for them..is a home land line… What crock

  14. If you retired and have nothing else to do and you want to work then maybe trucking makes sense no young man or woman with a family should go into trucking they screw you every single way down-the-line have you heard about short mileage this is how every trip you take they screw you out of a 100 $150 you say all that isn't true it is True ask any trucker that's not even talking about the DOT their the bangas bunch of nazis it ever was 2nd you get a natura the DOT can make you a criminal would no problem what they need in this country is a trucking strike for about 3 weeks in Maybe we can start making some money again

  15. Have dispatched uber freight. Their cutting rates and keeping the excess for themselves. The more we avoid brands like Uber the less opportunity it yields for opportunistic investors. #ubersucks ass!!!!

  16. They will also watch their fees go down soon, just like Uber rideshare apps. Drivers will find themselves driving longer hours for less pay. Also, this guy is full of bulls.

  17. What sucks about truck drivers you can die in an early stage. You have a higher risk. You can get the “sitting disease” and have problems with your heart. On top of that you hardly sleep, which is worse. My uncle past away last month because of his lifestyle as a truck driver.

  18. Evil entity totally up to no good
    Starting wages has went down over last 30 years !!! W. T. F. Yup
    Immigrants and minority’s cheap labor and these platforms are up to no good as they are proportion to poverty and this dude is a punk

  19. We need a universal truckers union in the United States. Dont let these big companies screw the drivers. Let's stop complaining and do something about it.

  20. Get uber out of the trucking industry. They are a wealthy company. They will lower rates and destroy drivers lifes. They know nothing about our industry.

  21. Ok, first of all let's get straight this publication doesn't pertain to the so, "TRUCKERS"! It is a total misconception of the Trucker in general. The "TRUCKER" is actually the drivers who drive for the Fleets, either small or large. As usual the media has to throw the entire Transportation Industry into a, "one size fits all" category. The Transportation Industry has "Several" different aspects not just "ONE" !

  22. Why we as Truck drivers cannot unite and form a union? They say they are 68.000 short on Drivers but flat rates are on the bottom.
    They are ripping us off.

  23. Uber trying to monopolize every business that deal with transportation. They will go bank rob trying to invest into the truck industry. There’s more things to deal with in the trucking industry’s. These people think that just by creating an app they can ruled the world. Where are they going to get the type of the money to pay these drivers. How Uber going to make their money. Are they going to take percentage on each of drivers job. There’s a lack of drivers cause drivers looses their license cause of accidents. Some of these drivers retired.

  24. Drivers may start out making good, trust me as a former limo driver, once Uber gets it heels duh into the industry the drivers will be paid so little it won’t be a laughing matter, if five years, truckers will have to find another profession, they will under charge companies to provider the service, they greatly under pay the driver, while taking the major portion of the profit…that’s how Uber and Amazon operate

  25. First the taxi industry now the trucking industry and the jobs of many dispatchers are on the line. And we have ourselves to thank for supporting these big corporations.

  26. Well Amazon is getting to the level where the US Government has to break it up (to stop monopolistic powerhouses that could threaten the US Gov./world) like how they did with Rockefeller and Standard Oil over 100 years ago.

  27. There is a lot of demand because getting your CDL is a long expensive process. If there was a faster process without the bs there wouldn't be a shortage.

  28. Their not going after truckers. They'll lose face when they gain the reputation of Swift. They are going after the brokers.

  29. This infomercial should have a disclaimer. It is is a sales pitch for Uber who averages a $1 billion loss every quarter.

    Caveat Emptor.

  30. Once they put both leg on the industries they will take 2legs of owner operator and abuse the rate. Simple like what they did to taxi drivers and uber drivers

  31. Funny thing is freight is going to be easier to jack then they will lose serious money then. Best thing they can do is pay better. Being away from home and cost of living on the road is to high to get people to come into trucking and starting them out at 500 or less a week. I went from over the road to oilfield driving now I make about 2500 a week home every night seeing my kids more in a month than I did the entire year I was otr.

  32. Uber is just another liar.
    Who tried Uber freight, do complain, that it's cheap. It's ok once in a while, it's not ok on constant basis

  33. Where do you get your facts CNBC? There are more owner operators than freight, not quite enough slave company drivers but that's because people don't like slavery. As in 30 plus days on the road for what ends up being minimum wage or less. Owner operators often demand human working conditions and as a result sit without freight because disgusting companies like uber freight and Amazon are trying to pay 1980's driver wages today.
    I'm a dispatcher fyi, I book freight for a living. No nice things to say about uber, Amazon or CNBC for acting like experts without investigating the so called driver shortage. The only shortage there is, is a slave shortage and for good reason. Why does the free market mentality apply every where else but trucking CNBC? Why are you ignoring the way of the free market concept only in this industry? Want drivers? Pay up!

  34. All drivers need if they don't have a set contract, is a spot market board (DAT). Most of these app loads end up on the spot market where rates double and triple after the morons with apps had their choice of slave rate loads.

  35. Uber is evil ,they just try to manipulate everyone and then there’s nobody left in the market .they have domination then they will kick the drivers ass they did that to Taxi & Limousine industry. now there after the trucking. They target new owner operators.

  36. Uber Freight will work until there are more drivers than are needed, then Uber will cut the driver's pay for shareholders. Uber can only succeed if the company goes private. This is why Uber will try to replace the drivers with self-driving trucks.

  37. As of today trucking is peace of sh!t specially for O/O let's just leave it to the mega Carrie and I'm surprised these mega Carriers and their lobbying partner ATA are complainingl about driver shortage when there isn't any freight to haul.

  38. 🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤦‍♂️🤦‍♂️🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣

  39. Uber plans to take over the trucking market so they can drop the amount of money that you make same as their ride-sharing plan it was successful but they may not be so successful in trucking due to the fact that most truckers are already aware of their plan!

  40. How does American industry respond to worker shortages, when the workers can't be replaced with imported people? Simple answer: Automation. Despite the fact that driverless vehicles are blatantly unsafe to every human around them, they are getting less and less unsafe, and thus more and more likely to be replacing human drivers. There are several companies- such as Amazon, Walmart, and, of course, Uber, who have made it plain that they intend to replace their human-driven trucks and/or cars with driverless vehicles as soon as they can. Before long, the companies that switch over will end up with notably lower costs for their delivery operations; consider, if you will, the driver rest periods that every company imposes on their drivers. Those will not affect trucks that don't have drivers. There are other costs associated with humans, like salaries, medical, dental, vision, and retirement benefits- none of which are required by machines.

    The very best thing to do for the teamster unions is to build mandates into interstate commerce laws that at least one driver be present in every truck, irregardless of whether the driver is actually the one doing the driving. If that doesn't happen, there will be a glut of drivers, and no jobs available.

  41. I am trying to get my cdl. The Insurance companies have made the trucking industry highly regulated and very strict to the point of ridiculousness.

  42. I travel to South America often and there are many cities were it is more expensive to take an Uber or cab ride than in some US cities. Uber caused this. They now want to destroy wages for truck drivers and monopolize the industry. Same as they destroyed the taxi industry and now pay third world wages that in some cities do not amount to min. wage after expenses are taken into account. How this is legal is beyond me. America is becoming an oligarchs dream while around a third of the population are barely scraping by. Never before in this country were there so many working poor. so many full time employees living out of their cars.

  43. Truckers will be replaced by IT/selfdriving trucks. No downtime, no showers, no mandated rest. Companies make more $$ plus fewer accidents with robots. Read Andrew Yan ‘s book WAR ON NORMAL PEOPLE. Same business model as they have with their cars, Uber and Lyft just want more $$ for them, not for the employees. “Growth at all costs” per the video. Checkout Yang’s Freedom Dividend to help people who will be replaced by robots. Yang2020.com

  44. Uber Freight is no different than the average broker! In business to steal from the truck and provide jobs for more pencil pushers! I haul freight for Uber from time to time and the rates are no different, but for some reason if a load that was posted earlier in the day isn't covered, the price only starts going up late at night and if still not covered by morning, the price/rate goes back down! These people, meaning brokers in general, think truck drivers are stupid/ignorant/illiterate, and that's why the suit and ties, pencil pushers will always make more money than the driver who is actually doing all the work! And Convoy is even worse! 90% -95% of Convoy and Uber's freight is 40,000 lbs or better, and these folks don't care nor have any concerns about the drivers fuel mileage or wear and tear from all the heavy freight, all they see is that it's under 80000 lbs! So cut the horse$hit Uber, your in this to steal from the driver like the rest of them!

  45. What she didn't tell you was many truckers is unhealthy they eat very poorly n don't exercise sitting down pretty much of 80percent of a 24hr day ..

  46. Truck drivers will have their jobs replaced by autonomous vehicles within 10 years. Perhaps these people should start preparing now.

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