Trucking On-Demand May Be the Uber of the Logistics Industry

The trucking industry is seeing many improvements recently as technology accelerates the way products are shipped. The U.S. trucking industry has relied on third-party brokers or travel agents to connect truckers with customers for quite some time. Now, startups are working towards making an impact on the supply chain industry with trucking on-demand.

The new on-demand trucking company, Convoy just launched their new trucking services after raising $2.5 million in seed funding from investors involving founders of Amazon.com Inc., Salesforces.com Inc., eBay Inc., and co-founder of Uber Technologies Inc.

The Seattle-based trucking company says it will enable companies looking to ship goods locally to order a job on its website, get an instant price, and track the shipment in real time, according to the Wall Street Journal.

In fact, a source tells WSJ that after two months of using Convoy, the service has connected him with a trucker within four to five minutes, compared to hours for some brokers. Mike Williams is a global supply chain director for World Vision where he says speed is key because his organization books shipments at the last minute.

Convoy, however, is not the only startup tackling the trucking industry. Startups such as KeyChain Logistics, Trasfix and Trucker Path have also raised $20 million in July.

While trucking startups are making big improvements to the supply chain industry, there are still barriers that need to be addressed. According to the Supply Chain Digest, “most shippers, at least the larger ones, rely on networks of “core carriers” that move the vast majority of their freight, turning to spot markets only when their usual carriers can’t cover a load.” If the larger shippers had to choose, they would prefer the drivers who are more familiar with the their policies of cosignee.

Perhaps these trucking startups such as Convoy may not appeal to larger shippers, but they will appeal to smaller companies looking to cut back on trucking expenses.

The Manufacturing Extension Partners (MEP) is committed to strengthening U.S. manufacturing. Whether you are looking to partner with on-demand trucking services or maintain your current partnerships, MEP Centers throughout the U.S. can provide a solution for you. Find your local center today.