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Company officials explained that drop and hook services provide various benefits for shippers and carriers, providing flexible transportation solutions for the former, and enhanced efficiency and earnings potential for the latter.

Uber Freight heralds enhancements to Powerloop drop and hook offering - Logistics Management

Journal of Commerce - International shipping and logistics news, analysis, and business intelligence.

Uber Freight expands drop-and-hook program with emphasis on utilization

Uber Freight’s Powerloop offering has served more than 220,000 loads using over 10,000 carriers. Powerloop saw a 43% increase in power-only load volume in 2023. The post Uber Freight extends Powerloop drop-and-hook network nationally appeared first on FreightWaves.

Uber Freight extends Powerloop drop-and-hook network nationally

2023 was quite a ride for the trucking industry. We faced rising fuel prices, economic roller coasters, freight recessions, driver shortages, and a battle with inflation, which just wouldn't quit. It's been tough out there. As the founder of a startup with dispatch services in the U.S., I've got a front-row seat to the challenges facing our industry. My company aggregates over 100,000 loads daily, so I've seen firsthand how these trends are impacting carriers. My conclusion: To survive, a trucking company needs to know what’s coming, be flexible, and use modern tools. Here’s how to adapt to the trends that will shape the U.S. trucking industry. Use Data to Avoid Losses Everyone in the industry is feeling the squeeze. The trucking industry is facing its toughest challenge since 2008. Truckstop reported that in 2023, 77% of owner-operators had to book shorter routes due to rising costs, while 65% had booked fewer loads altogether. The American Transportation Research Institute ranks the economy as the biggest industry challenge, followed closely by truck parking availability and fuel prices. At the beginning of 2023, our inner data of aggregated loads predicted potential industry issues. I realized that margins would fall, and many operators would go bankrupt. That happened to Convoy, Yellow Corp, and other big players who were shutting down and laying off staff en masse. To be among the survivors, we took a risk to change our business model and focused on using AI tools. Being able to predict what’s coming helped my startup generate profit for three months last year. Now, we are once again close to breaking even. Carriers who don't use analytics will continue to run loads at a loss. With data analytics, truckers can identify the most efficient routes, predict load volumes, delivery times, market trends, seasonal fluctuations, and many other factors.  Previously, this information was only available to large companies. Now even small carriers can gain insights with tools like Truckerpath, DAT, or Cargofy (disclaimer: I'm biased, it's my startup). Switch to a Subscription Model It’s the era of the carriers who offer Logistics-as-a-Service. Looking to cut costs, e-commerce and other companies are seeking LaaS tools to manage their transportation services through cloud-based platforms. Instead of handling the logistics themselves, they prefer to outsource it to a third party. And this is where you can come into play. I saw firsthand how well it works. Launching a subscription-based model in 2023 allowed us to generate a more stable revenue stream. However, the benefits of LaaS extend beyond financial stability. By adopting a subscription model, carriers improve their efficiency by implementing transportation management systems (TMS), accounting software, and data analytics. They can better analyze financial data, gain insights about shippers’ debts, and manage contracts –– all in one place. Also, carriers can offer value-added services to shippers, such as real-time tracking and visibility. Start Using AI As Much as Possible AI tools increase truck drivers' revenue by an average of 17% per year, our internal analytics shows. By analyzing big data on supply-demand dynamics, seasonality, and freight availability, AI algorithms can guide truckers toward high-paying loads that minimize empty miles. Predictive matching helps carriers dismiss loads that lead to deadhead miles and wasted time. AI is also transforming the role of truck dispatchers. Instead of making numerous phone calls to find viable loads, they use AI and get pre-matched opportunities with calculated rates. With AI’s help, an individual dispatcher can now efficiently handle 2-3 times as many trucks. I don’t believe AI will fully replace the human interaction required for negotiations. But, it dramatically reduces manual work and empowers dispatchers to secure better loads in a fraction of the time. Trim Your Team (Sorry) The trucking industry has seen its fair share of ups and downs when it comes to employment. When times are good, companies hire thousands of workers, but when the market takes a turn, layoffs can be just as common. The  American Trucking Associations reported that, in 2022, a whopping 8.4 million people worked in trucking-related jobs across the economy. 3.54 million of those people were truck drivers. In 2023, many large companies such as Flexport, Uber Freight, Flock Freight, and Lipsey Logistics had to trim their teams. As the founder of a trucking startup, I also had to make the tough choice to downsize my team by 30%. This decision was not taken lightly, but it was essential to ensure the company's survival. Otherwise, my company would go bust, and I’d have to dismiss 100% of my staff. 2023 was quite a ride for the trucking industry. We faced rising fuel prices, economic roller coasters, freight recessions, driver shortages, and a battle with inflation, which just wouldn't quit. It's been tough out there. As the founder of a startup with dispatch services in the U.S., I've got a front-row seat to the challenges facing our industry. My company aggregates over 100,000 loads daily, so I've seen firsthand how these trends are impacting carriers. My conclusion: To survive, a trucking company needs to know what’s coming, be flexible, and use modern tools. Here’s how to adapt to the trends that will shape the U.S. trucking industry. Use Data to Avoid Losses Use Data to Avoid Losses Everyone in the industry is feeling the squeeze. The trucking industry is facing its toughest challenge since 2008. Truckstop reported that in 2023, 77% of owner-operators had to book shorter routes due to rising costs, while 65% had booked fewer loads altogether. The American Transportation Research Institute ranks the economy as the biggest industry challenge, followed closely by truck parking availability and fuel prices. 77% 77% 77% biggest industry challenge , biggest industry challenge biggest industry challenge At the beginning of 2023, our inner data of aggregated loads predicted potential industry issues. I realized that margins would fall, and many operators would go bankrupt. That happened to Convoy, Yellow Corp, and other big players who were shutting down and laying off staff en masse. To be among the survivors, we took a risk to change our business model and focused on using AI tools. Being able to predict what’s coming helped my startup generate profit for three months last year. Now, we are once again close to breaking even. Carriers who don't use analytics will continue to run loads at a loss. With data analytics, truckers can identify the most efficient routes, predict load volumes, delivery times, market trends, seasonal fluctuations, and many other factors.  Previously, this information was only available to large companies. Now even small carriers can gain insights with tools like Truckerpath, DAT, or Cargofy (disclaimer: I'm biased, it's my startup). Carriers who don't use analytics will continue to run loads at a loss. With data analytics, truckers can identify the most efficient routes, predict load volumes, delivery times, market trends, seasonal fluctuations, and many other factors.  Previously, this information was only available to large companies. Now even small carriers can gain insights with tools like Truckerpath, DAT, or Cargofy (disclaimer: I'm biased, it's my startup). Switch to a Subscription Model Switch to a Subscription Model It’s the era of the carriers who offer Logistics-as-a-Service. Looking to cut costs, e-commerce and other companies are seeking LaaS tools to manage their transportation services through cloud-based platforms. Instead of handling the logistics themselves, they prefer to outsource it to a third party. And this is where you can come into play. I saw firsthand how well it works. Launching a subscription-based model in 2023 allowed us to generate a more stable revenue stream. However, the benefits of LaaS extend beyond financial stability. By adopting a subscription model, carriers improve their efficiency by implementing transportation management systems (TMS), accounting software, and data analytics. They can better analyze financial data, gain insights about shippers’ debts, and manage contracts –– all in one place. Also, carriers can offer value-added services to shippers, such as real-time tracking and visibility. Start Using AI As Much as Possible Start Using AI As Much as Possible AI tools increase truck drivers' revenue by an average of 17% per year, our internal analytics shows. By analyzing big data on supply-demand dynamics, seasonality, and freight availability, AI algorithms can guide truckers toward high-paying loads that minimize empty miles. Predictive matching helps carriers dismiss loads that lead to deadhead miles and wasted time. AI is also transforming the role of truck dispatchers. Instead of making numerous phone calls to find viable loads, they use AI and get pre-matched opportunities with calculated rates. With AI’s help, an individual dispatcher can now efficiently handle 2-3 times as many trucks. I don’t believe AI will fully replace the human interaction required for negotiations. But, it dramatically reduces manual work and empowers dispatchers to secure better loads in a fraction of the time. Trim Your Team (Sorry) Trim Your Team (Sorry) The trucking industry has seen its fair share of ups and downs when it comes to employment. When times are good, companies hire thousands of workers, but when the market takes a turn, layoffs can be just as common. The American Trucking Associations reported that, in 2022, a whopping 8.4 million people worked in trucking-related jobs across the economy. 3.54 million of those people were truck drivers. American Trucking Associations American Trucking Associations American Trucking Associations In 2023, many large companies such as Flexport, Uber Freight, Flock Freight, and Lipsey Logistics had to trim their teams. As the founder of a trucking startup, I also had to make the tough choice to downsize my team by 30%. This decision was not taken lightly, but it was essential to ensure the company's survival. Otherwise, my company would go bust, and I’d have to dismiss 100% of my staff.

2024 Will Be Tough for the U.S. Trucking Industry: Here’s How Carriers Can Adapt

Imagine empty shelves in supermarkets, closed cafes, and abandoned cars on the street with no fuel in tanks. This isn’t the beginning of a global war or a zombie apocalypse — it’s what will happen in America if the trucking industry stops for just three days. Trucking is the backbone of logistics in the States. Trucks move roughly 71% of the nation’s freight by weight, from iPhones to aspirin and toilet paper. The industry employs 8.5 million U.S. citizens. The significance of trucking in this country was one of the reasons why I moved here in 2017 and why I founded a trucking startup as an immigrant. There are other reasons, too. Highest Rates Per Mile When I first ventured into the trucking business in 2016-2017, I thought India was an excellent market because of its growing pace. But while the industry there did develop fast, low rates per mile meant I wouldn’t have revenue as high as in the U.S. The average rate per mile in India is about 98 cents. For reference: It’s $2.42 in Canada and $2.90 in the U.S. And this is the most important metric, which directly impacts the profitability and sustainability of a trucking business. Best Roads and Trucks The U.S. has the world’s largest road network, with over 4 million miles of roads, including more than 164,000 miles of the National Highway System. India is in second place with a gap of about 100,000 miles. Such an extensive network allows U.S. truck drivers to deliver goods fast while burning less fuel. This means higher revenues. The U.S. is also home to some of the most driver-friendly trucks in the industry. UPS, FedEx, XPO Logistics, and many others invest in state-of-the-art vehicles. I can’t even allow myself to call them trucks — these are apartments on wheels. Some cabins could put studio apartments to shame. Comfortable beds, refrigerators, microwave ovens, satellite TV, and Wi-Fi make spending days on the road much more enjoyable. Immigrant-Friendly Field The U.S. is known as a nation of immigrants, and this diversity is well reflected in the trucking industry. Immigrants make up nearly 19% of 3.5 million employed drivers, which is slightly higher than the 17% in the country’s overall labor force. Why so? The main reasons are a good salary and a straightforward learning process. Truck drivers earn on average $60,000 per year. Median for hospitality or construction industries, which are also popular with immigrants, stands at around $30,000. To become a truck driver in America, you need just two things: about two months of training and a commercial driver's license. Many companies even offer in-house training for immigrants. Super-Fast Market When I landed in the U.S. to launch a startup in 2017, the market size was already substantial at $700 billion. In 2022, it hit $940 billion. In 2026, it’s projected to reach $4 trillion. The key growth drivers (no pun intended) include rapid e-commerce expansion, high industry competitiveness, and integration of data analytics and AI. Innovative startups are constantly emerging in the market to help drivers and dispatchers make more money. With AI, for example, drivers can forecast load volumes, delivery times, market trends, and seasonal changes accurately. Dispatchers, in turn, can handle three times more requests. The trucking industry still has room for new players, despite huge companies already in the market, like Uber Freight, Emerge, Loadsmart, and Transfix. If you have an idea about automating trucking processes and making logistics generally easier for businesses, the U.S. market is a great place to start. Feature Image: Stakh Vozniak, co-founder and CEO at Cargofy, at Iowa 80 Truckstop. Photo from 2017. Imagine empty shelves in supermarkets, closed cafes, and abandoned cars on the street with no fuel in tanks. This isn’t the beginning of a global war or a zombie apocalypse — it’s what will happen in America if the trucking industry stops for just three days. Imagine empty shelves in supermarkets, closed cafes, and abandoned cars on the street with no fuel in tanks. This isn’t the beginning of a global war or a zombie apocalypse — it’s what will happen in America if the trucking industry stops for just three days. Trucking is the backbone of logistics in the States. Trucks move roughly 71% of the nation’s freight by weight, from iPhones to aspirin and toilet paper. The industry employs 8.5 million U.S. citizens. 71% 71% 71% The significance of trucking in this country was one of the reasons why I moved here in 2017 and why I founded a trucking startup as an immigrant. There are other reasons, too. Highest Rates Per Mile Highest Rates Per Mile When I first ventured into the trucking business in 2016-2017, I thought India was an excellent market because of its growing pace. But while the industry there did develop fast, low rates per mile meant I wouldn’t have revenue as high as in the U.S. The average rate per mile in India is about 98 cents. For reference: It’s $2.42 in Canada and $2.90 in the U.S. And this is the most important metric, which directly impacts the profitability and sustainability of a trucking business. Best Roads and Trucks The U.S. has the world’s largest road network, with over 4 million miles of roads, including more than 164,000 miles of the National Highway System. India is in second place with a gap of about 100,000 miles. Such an extensive network allows U.S. truck drivers to deliver goods fast while burning less fuel. This means higher revenues. The U.S. is also home to some of the most driver-friendly trucks in the industry. UPS, FedEx, XPO Logistics, and many others invest in state-of-the-art vehicles. I can’t even allow myself to call them trucks — these are apartments on wheels. Some cabins could put studio apartments to shame. Comfortable beds, refrigerators, microwave ovens, satellite TV, and Wi-Fi make spending days on the road much more enjoyable. Immigrant-Friendly Field Immigrant-Friendly Field The U.S. is known as a nation of immigrants, and this diversity is well reflected in the trucking industry. Immigrants make up nearly 19% of 3.5 million employed drivers, which is slightly higher than the 17% in the country’s overall labor force. 19% 19% 19% Why so? The main reasons are a good salary and a straightforward learning process. Truck drivers earn on average $60,000 per year. Median for hospitality or construction industries, which are also popular with immigrants, stands at around $30,000. $60,000 $60,000 $60,000 To become a truck driver in America, you need just two things: about two months of training and a commercial driver's license. Many companies even offer in-house training for immigrants. Super-Fast Market When I landed in the U.S. to launch a startup in 2017, the market size was already substantial at $700 billion . In 2022, it hit $940 billion . In 2026, it’s projected to reach $4 trillion . $700 billion $700 billion $700 billion $940 billion $940 billion $940 billion $4 trillion $4 trillion $4 trillion The key growth drivers (no pun intended) include rapid e-commerce expansion, high industry competitiveness, and integration of data analytics and AI. Innovative startups are constantly emerging in the market to help drivers and dispatchers make more money. With AI, for example, drivers can forecast load volumes, delivery times, market trends, and seasonal changes accurately. Dispatchers, in turn, can handle three times more requests. (no pun intended) The trucking industry still has room for new players, despite huge companies already in the market, like Uber Freight, Emerge, Loadsmart, and Transfix. If you have an idea about automating trucking processes and making logistics generally easier for businesses, the U.S. market is a great place to start. Feature Image: Stakh Vozniak, co-founder and CEO at Cargofy, at Iowa 80 Truckstop. Photo from 2017. Feature Image: Stakh Vozniak, co-founder and CEO at Cargofy, at Iowa 80 Truckstop. Photo from 2017.

Trucking in America: My Love Song to the Industry

With globalisation reaching its peak and e-commerce growing exponentially, boosted by the coronavirus pandemic, technology disruption within the logistics industry is now unparalleled. Here's a review of the key logistics and supply chain trends to help T&L leaders decide on their innovation strategy and what technologies to invest in. Rapid shifts in business and social environments put increasing pressure on logistic companies, disrupting traditional operating models and raising new challenges. Some technologies and supply chain trends have lost their relevance while others are growing in popularity. Over the past few years, the industry has seen more transformational change than it has in perhaps the entire previous century. Always on and always connected, today's customer demands fast, integrated, and personalised experiences via diverse channels that comply with the latest personal safety requirements introduced by the pandemic. To keep up with high volatility in supply and demand and remain resilient, . businesses in logistics need to transform their operations and workflows Companies will have to reconsider their business ecosystems and optimise all the essential processes and infrastructure, from warehouse automation and opening new parcel-delivery bases to developing delivery networks, integrating with third-party vendors, and adjusting their marketing and brand development activities. It's critical to ensure you have all the resources and skills in place, including software development expertise. Many enterprises partner with experienced providers of to facilitate and support this digital journey. logistics software development services Moving forwards with your digital transformation, you need to scope out logistics and supply chain technology trends, assess their potential within your business environment and select those technologies that could meet your specific business needs. If you dive into the latest publicly available industry reports by McKinsey, PwC, Gartner or the Logistics Trend Radar published annually by DHL, you'll find several technologies and supply chain trends covered there. Some are already being pioneered by industry innovators, and others are predicted to disrupt the market in the coming years. Let's take a closer look at them. 6 Trends to Impact T&L Businesses in 2022 and Beyond 1. Omnichannel and the focus on the customer As economies gradually reopen, customers expect companies to develop their existing digital channels instead of reverting to pre-pandemic business models. Omnichannel services will allow businesses to offer a better customer experience and improved delivery convenience. "The total value of omnichannel distribution will continue to grow seven per cent every year, from $600 billion in 2019 to $840 billion by 2025" - McKinsey Yet supply chains can struggle to meet the customer-centric expectations that the omnichannel experience demands if their fulfilment processes are patchy and the supply chain is too segmented. A lack of visibility into inventory in transit is also problematic. Companies will have to overcome these challenges to deliver a seamless experience while minimising the costs of complaints and cancelled orders. With customer experience at the forefront, companies will have to shift from integrated legacy systems to cross-channel platforms shared between manufacturers, retailers and logistics providers, with the aim of improving visibility over their supply chains, streamlining shipment processes and responding to the growing pressure on "anytime and anywhere" delivery models. To bring customer experience even further forward, digital innovators will focus on technologies like artificial intelligence for personalising experiences, voice commerce and chatbots for customer support and touchless interactions, extended reality for immersive experiences, contactless IoT and mobile technologies for billing and payment digitalisation. 2. The sharing economy The pandemic has not only altered traditional business models, but it has also disrupted the way consumers interact with service providers. As more and more big logistics enterprises started shifting towards flexible labour and on-demand resources, the sharing economy business model has gained added relevance. "The sharing economy is projected to grow to $335 billion in 2025". - PWC Some aspects of logistics stand to benefit strongly from the sharing economy, but only if companies intelligently embrace these disruptive business models. Supply chains need to consider adopting key tenets of the sharing economy: making shared use of assets, people and data. Rather than operate logistics in the silo, companies could consider pairing up with third parties and partners to share storage, transport and technology to optimise utilisation and maintain a more fluid supply chain. Uber freight, for example, allows companies to schedule deliveries via a trusted network of drivers while DHL Supply Chain implements a custom labour share app in the Americas. It enables warehouse managers to pool shifts between facilities and allows employees from multiple locations to work flexibly where their services are most needed. 3. Blockchain and decentralisation It is not just the sharing economy that promises to deliver benefits by taking a less centralised approach to supply chain management and logistics. Security and greater efficiency, on top of the ability to deliver higher service levels at a lower cost—to name a few benefits—are the reasons why companies from the transportation and logistics sector turn to Blockchain-based solutions. On top of these, Blockchain can enable source-to-consumer transparency, immutably storing product lifecycle information, secure transfer of data and much more. “The Blockchain market size is projected to grow from USD 4.9 billion in 2021 to USD 67.4 billion by 2026”. - MarketsandMarkets Research Potential use cases will include supply chain optimisation with the help of smart contracts and automation, new business models based on crowdsourcing, loyalty programs with immutable records and many more. Main use cases for decentralised logistics technology solutions 4. IoT and digital twins Intra-enterprise supply chain visibility also matters, and the trend is clearly towards better insights. Thanks to the Internet of Things (IoT), companies can now measure inventory levels and stock movements automatically as millions of sensors instantly report back to a central hub. Sensors can track goods all the way from the factory floor through to the store. This wealth of data provides the opportunity for advanced analytics: analysing logistics and supply chain management activity more deeply than ever before in order to better optimise your supply chain operations. Doing so reduces costs and irons out the glitches that today’s customers find so intolerable. In fact, supply chain data is now so detailed that companies can build a virtual version of a supply chain called a digital twin. Digital twins can be tweaked and modified to find improved ways of operating – which can then be implemented in the real world. 5. AI, intelligent automation and RPA While digitalisation will certainly automate many logistics processes, it will also relieve increasing labour shortages, particularly due to pandemics and the restrictions associated with them, while helping to boost performance and ensure the safety of existing workers. McKinsey Global Institute estimates that the transportation and warehousing industry has the third-highest automation potential of any sector. Technology can help introduce social distancing in warehouses, from connected IoT solutions that trace employees within a facility to G2P systems and robots that are less invasive in terms of personal privacy but still keep people safe. Automated pallet-handling solutions can help cut shipment-processing time by 50% while preventing unnecessary in-person interactions among warehouse workers. One active adopter is DHL International (DHL). The company has built over 100 automated parcel-delivery bases in Germany to reduce the need for manual handling and sorting by its delivery personnel. Examples of warehousing robotization application in respective logistics processes Robotic process automation (RPA) is also set to reduce labour costs and minimise errors by automating routine processes on existing supply chain software platforms. But, far from making human workers obsolete, this shift will increase the number of technically skilled jobs in logistics (e.g., programmers and managers of robotics fleets). Innovative new models of work will be needed for the recruitment and retention of increasing segments of millennial and Gen Z logistics talent. Gartner also predicts that through 2024, 50% of supply chain organisations will implement applications that support the capabilities of artificial intelligence and advanced analytics. Indeed, digital supply chain optimisation is no longer optional, and leaders in logistics innovation look to advanced tools such as artificial intelligence (AI) and indeed intelligent automation to get the most out of their supply chains. AI has the ability to analyse and optimise supply chain data to a level that cannot be matched by humans utilising data analytics tools. Combining AI with other technological advances such as digital twins, companies can drive supply chain productivity to levels never seen before, giving companies a clear cost advantage over competitors. Furthermore, intelligent automation ensures that automated supply chains utilise available data and insights to remain agile, responsive and scalable. 6. Self-driving vehicles As artificial intelligence (AI), sensors and vision technologies mature, self-driving capabilities become even more available, allowing logistics to maintain 24/7 operation with new levels of safety and efficiency. There are multiple promising use cases, from long-haul trucking and last-mile delivery rovers to unmanned aerial vehicles (UAVs) or "drones". “Self-driving vehicles will soon fundamentally transform the way vehicles are assembled, operated, utilized, and serviced. From trucks to last-mile robots, self-driving vehicles will transform logistics by unlocking new levels of safety, efficiency, and quality”. - DHL Logistics Trend Radar Drones can help facilitate and even automate delivery to isolated areas lacking proper ground infrastructure, along with cost-efficient remote inspection of industrial facilities, warehouses, rail networks and other outdoor assets. From our experience of delivering custom logistics software solutions, we can see that the outcome of any digitalisation journey heavily depends not only on the choice of technology but also on how mature the organisation is. So, how can you know if your logistics organisation is ready for the digital future? Understanding can help you identify the technology that can best meet your organisation’s unique needs. data-driven supply chain modelling Capitalizing on the latest supply chain trends Companies with complex logistics or vast supply chains have high expertise in supply chain management, but less expertise when it comes to digital transformation and innovation. will enable your organisation to get the most of the latest logistics and supply chain trends. An experienced technology partner Our advice is to focus on digital technologies that have proven practical value, successful real-life implementation cases, and predictable ROI. Such technologies and tools include data science and advanced analytics, the cloud and Robotic Process Automation (RPA). Otherwise, you risk investing in supply chain trends and technologies that are either not mature enough or have no real potential within the logistics business environment. Proper research and analysis will help you reduce technological uncertainty so that you can be sure your idea is viable and have full confidence in any investment. Related customer success stories While transformation is the key to remaining resilient and competitive in today’s challenging environment, businesses are looking for new ways to diversify their value proposition, digitalise processes, automate warehouse operations, and adopt new delivery models to drive operational effectiveness and prepare for the post-pandemic economy. Aramex is one example of how a logistics enterprise can adopt digital technologies to transform operations and optimise its entire business ecosystem. Aramex is a disruptive leader in the global logistics and transportation industry with over 18,000 employees in 69 countries. Aramex by using internal apps for warehouse operations and a 230% increase in mobile user retention. achieved a 5x cost reduction Another data-driven transformation is Russmann, a Germany-based car and van rental firm which also offers vehicle sharing and leasing solutions. Russmann to integrate its IT systems and use data science to make better operational decisions. The customer a 3% increase in its ﬂeet utilisation rate and 95% accuracy of demand prediction having implemented a centralised fleet management solution reinforced by data science.

Analyzing The 6 Most-Promising Logistics and Supply Chain Trends in 2022

I’ve been using a new mental model where I formulate a sentence that describes what a company does and then home in on the verb that defines the category they hope to own. By changing one word at a time in the sentence, it’s easy to think of the different directions that a company can expand in, whether through building new products or making acquisitions. This rubric helped me see what I initially thought were surprising forays by companies as choices that are strategic and cogent Here’s an example with Uber: other . Humans driving cars move humans on demand Changing any of the italicized words one at a time allows us to think of adjacent markets that fit within Uber’s brand and can benefit from the expertise and economies of scale that they are building. . a.k.a Uber Eats Humans driving cars move food on demand . a.k.a Uber’s Self-driving program Self-driving cars move humans on demand . a.k.a Uber Freight Humans driving trucks move stuff on demand . Self-Driving cars/trucks/boats/planes move stuff on demand . Self-Driving Food Trucks/Vendors that move to where you are on demand From these examples we can surmise that Uber’s business is to own any category with the verb If you think of Uber as an on-demand cab company then you would miss the size of the opportunity around owning the verb to move. It’s much more rewarding to think about it as a company that moves people, objects, food, etc. It makes it much clearer what their potential can be as their ambition grows. move. Let’s take another example to illustrate the versatility of the concept using Google: Google all the world’s information so that can find organizes humans digital information. It’s crucial to notice that Google, though it’s synonymous with search is actually anchoring it’s mission around the verb Search is a method of accessing the organized information rather than the primary goal. Of course they started out by organizing links on the web and that naturally evolved to all the world’s information even if it’s not digital e.g. maps, books. They also made the information available to machines through APIs instead of just humans. organize. I find that framing a company’s mission using this method allows me to understand the possibilities around their business both for anticipating interesting ideas that can be built and for brainstorming pleasure :) Thanks to Katie Gemmill and Nicolae Rusan for reading this and providing input.

Companies as Verbs

An in-depth look startups and corporations pioneering the logistics journey A few months ago, I met with executives from Walmart, as part of a delegation visiting Israel, meeting with the brightest minds in the country. Participating in these meetings opened my eyes to the extraordinary world of logistics — a trillion dollar industry that connects the world, responsible for shipping some $19 trillion dollars worth of goods annually. Walmart, Amazon, Target, Gap and every retail business has to tackle hundreds of potential supply chain nightmares to deliver their products from the factory to their consumers’ doorsteps. While the level of innovation taking place today in the industry is unprecedented, startups continue to reinvent the status quo to solve pain points leveraging everything from robotics to drones to big data analytics. What is Logistics? Before highlighting the process of shipping goods from point A to B, it’s helpful to begin with a basic understanding of logistics. “ is the management of the flow of goods, information and other resources between the point of origin and the point of consumption in order to meet the requirements of consumers.” The logistics industry is one of many moving parts including transportation, inventory, warehousing, sorting, packing, and last mile delivery. Logistics With the context in mind, let’s take a bird’s eye view of the process, from ordering a product online to your doorstep, and the startups enhancing the logistics cycle at every step of the journey. Phase One: Departing the Factory In most cases before ordering a product online, it has already been transported across land or sea to the retailer’s distribution center or warehouse. When many think of shipping, they think of logistics courier giants like FedEx, UPS, and DHL. They picture the parcel delivery man ringing the doorbell and handing over the package. But in reality, the journey begins many steps beforehand. To begin the process, the retailer typically places an order with a manufacturer or supplier. After the order is placed, the next step is booking the freight journey from the manufacturer or supplier to the distribution center. For this, many retailers use freight forwarders, a service used by companies to assist with international imports and exports, to ship goods and cargo from the origin to their initial destination. Freight forwarders are essentially booking agents that estimate the costs associated with transportation, book the journey, and handle the logistics of ensuring safe travel for the cargo from the origin to initial destination, including customs management, packaging, labeling and documentation management. In the past five years, the freight journey has evolved from an archaic, offline headache to an online, modern solution_._ Previously, the price you paid for the freight journey depended on how good the freight forwarder was at their job. Today, there are a handful of startups pioneering the experience. As popular consumer air travel websites like Priceline and Expedia arose, entrepreneurs knew that freight was ripe for a similar disruption. One of the players pioneering the online freight booking space is , an OurCrowd portfolio company, that is digitizing the international logistics process with their platform for seamless freight booking. Freightos allows importers and exporters to instantly compare and book air and ocean shipments. This is fed by Freightos technology used by over 1,100 global freight forwarders that use Freightos to improve freight sales automation. The Freightos Marketplace, launched in 2016 has over 1,000 B2B customers and dozens of sellers. In the processes, Freightos has created the world’s largest database of freight rates of over 750 million price points. Freightos Capital-rich tech companies like Alibaba and Amazon are also increasingly entering the global freight market, with Amazon recently registering as an NVOCC in late 2016 and Alibaba earmarking some $15 billion dollars for investments over the next few years. Uber, the on-demand taxi behemoth, has also thrown its hat into the freight ring with Uber Freight. Similar to the popular consumer app, Uber Freight connects carriers with shippers on-demand for domestic land travel. Uber also autonomous trucking technology startup Otto in 2016 for $680M to leverage the technology in their freight business. acquired Other solutions have also been implemented to further enhance and alleviate many of the pain points of the freight industry. Automating processes, tracking shipping containers, processing customer documents, and delivering the cargo from the port to the retailer’s distribution center have all undergone significant innovations. With the cost of processing the documents and information estimated at 2x the actual cost of transportation, have partnered to apply a blockchain based distributed ledger to exchange event data, ensure smooth workflows, reduce costs, and ultimately increase the efficiency of the entire supply chain. IBM has also to develop and implement a specialized solution for the food services industry. Walmart uses IBM’s blockchain technology to track the supply chain of produce in their stores, especially useful during a food scare event. IBM and Maersk partnered with Walmart In the previously antiquated industry, middlemen monetized their rolodex to leverage and strong-arm retailers into hiring them to navigate the system. By moving the industry online, the centralization of power, industry know-how, and transparency moved from a few to many. Phase Two: Settling into the Warehouse After the cargo arrives at its destination, it’s sorted at a distribution center and sent to the retailer’s regional warehouse. At the warehouse, technology is leveraged to catalog and sort, maintain and track, and ultimately guide the merchandise to the correct package to be delivered to the customer. With the age of automation, robotic solutions were implemented to mimic and replace the manual labor often involved in maintaining these facilities. Major retailers such as Amazon, Best Buy, Lowe’s, Walmart, and Foxconn, among others, have been in order to reduce the inefficiencies in their warehouses, and increase their bottom line. quick to adopt these technologies In March 2012, Amazon acquired a warehouse robotics company, Kiva Systems (since renamed ), for a whopping $775M highlighting the significant potential in warehouse technology. , Amazon was using over 45,000 of these robots in their facilities to autonomously track and transport merchandise through the warehouse to cut down on the time lag of humans searching the warehouse floor to fulfill orders. Amazon Robotics As of early 2017 By implementing robotics technology into the warehouse, Amazon was able to from an hour and a half to under 15 minutes, while fitting 50% more product into the warehouse. cut packing time Other warehouse technology solutions are being implemented to reduce the time between order and delivery. A developed a solution to track warehouse inventory using drones, which prevents mismatches and helps employees find items faster. Their small drones fly around safely as they scan and itemize RFID tags on inventory. group of MIT researchers “Between 2003 and 2011, the U.S. Army lost track of $5.8 billion of supplies among its warehouses,” says Fadel Adib, the Sony Corporation Career Development Assistant Professor of Media Arts and Sciences, whose group at the MIT Media Lab developed the new system. “In 2016, the U.S. National Retail Federation reported that shrinkage — loss of items in retail stores — averaged around $45.2 billion annually. By enabling drones to find and localize items and equipment, this research will provide a fundamental technological advancement for solving these problems.” — MIT News After the merchandise has been tracked, gathered, and ready to be assembled, a startup called is pioneering the last step of the previously manual process. RightHand Robotics recently began piloting technology to automate the task of recognizing and picking up items from boxes. Founded by a team of researchers from Harvard Biorobotics Lab, the Yale Grab Lab, and MIT, RightHand can pick items at a rate of 500 to 600 per hour, on par with the speed of a human worker, by using machine learning to recognize and handle thousands of items. RightHand Phase Three: Last Mile Delivery After the package is packed, it’s ready for the final leg of the journey, known as last mile delivery. The most important part of the logistics supply chain is the delivery. Everything that happens up until this point is commonly unknown to the paying consumer. Innovative solutions have been piloted using robotics, drones, and other technology to ensure the smooth logistics cycle continues. UPS made a test run earlier this year with their drone technology to increase their drivers efficiency by saving time on parking and walking to the doorstep. Similarly, drones have been used in last mile delivery to further decrease the time between order and delivery. Amazon, Domino’s, DHL, and even 7-Eleven have all developed drone technology that delivers everything from pizza to a new t-shirt via autonomous drones. For urban areas, a pain point is being at the destination to accept the package at the right time. Technology startup relieves this headache by using their address for delivery and scheduling when you want your package delivered. This is a convenience rather than a technological innovation, but as the last-mile experience is paramount to customer success, it’s a worthy idea that solves a real pain point. For smaller businesses, like restaurants, logistics startups like , , and provide solutions for delivery, tracking, payments, returns, and more. Doorman Deliv Homer OnFleet Taken together, the logistics industry has evolved from an offline, archaic industry to an online, modern innovative industry over the past five years. With significant upgrades and improvements at each step of the way, companies are becoming better equipped to handle the volume of transactions placed over the Internet. As service to consumers continue to improve, logistics providers raise the bar for other industry standards as well. With the revolution of technology solutions, robotics, drones, and big data analytics, one can only begin to wonder what’s next? Thank you Eytan Buchman , Sarah Lavin Ableman , and Yehoshua Zlotogorski for reviewing, editing, and improving this post! Update: Since posting, it’s been brought to my attention that Doorman will be shutting down. Read more on that . here Hi! I’m Jordan, and I work for a global VC based in Israel. There’s a lot happening in the VC/startup scene and I figured I’d post my observations here. All opinions are my own. Feel free to follow and get in touch on Twitter @jordanodinsky .

Logistics Tech Market Map — October 2017

Do you know what distinguishes Billion-dollar companies like Uber, Amazon, Netflix, Airbnb, etc. from other companies? Their effectively created & implemented business models. Business models that are flexible. Revenue generation models that react to the varying needs of customers. Of course, brand image is imperative to attract new customers, but without a defined business model, you might fall short in converting that attention. If you are looking for some motivation, check out these Unicorn companies and know how they run their business. Business Models of Billion Dollar Companies: Uber, Netflix, Amazon, and Airbnb 1. Uber’s Business Model Uber can be considered as the early adopter of the gig economy. The company had seen a tremendous opportunity in the taxi market and built a platform that aggregates riders with nearby drivers. Today, Uber provides 15 million rides per day without owning a single cab. How amazing it is! But you may wonder how did uber come to this point, right? To know that, let’s see how Uber works. A person who wants to commute to any place can book Uber from the mobile app. He or she has to set a pick-up location on the map and enter the destination and book the cab. As soon as the person books the cab, Uber drivers who are near to that person’s location get the notification about it. A driver interested in having that ride can accept the request and complete the job. An interesting thing about Uber’s business model is that it doesn’t own any car. The drivers who are registered in the app have their own car. The Revenue Model The main source of Uber’s revenue generation is its completion of every trip. On every trip completed Uber takes 20-25% of the commission from the total payment. It then transfers the remaining amount to the driver’s account. Users can cancel the trip at any time. But they have to pay some fees as per the Uber’s guidelines. Users who cancel the ride after two minutes or meet the driver after five minutes of arrival, then they have to pay the extra charges. The ride-sharing company charges users according to the car types they select. Some examples of Uber’s car categories are Economy, Premium, Extra seats, and more. Riders can choose any of the car types as per their need. For an economical ride, Uber has a carpooling option that allows a rider to share the car with another rider going in the same direction. Its premium car offers luxurious rides. They have also options for forward-facing car seats for children and Wheelchair accessible vehicles for old people and handicaps. However, these two options are available in certain regions. Uber sometimes implements surge prices when the demand is high, especially in times like bad weather, holidays, and rush hours. The company generates great revenue from this tactic. Apart from the on-demand taxi services, Uber’s revenue comes from UberEats, UberFreight, Uber Elevate, and their self-driving cars. 2. Amazon’s Business Model From an online book store to a leading company in the world, the success of Amazon is the result of its innovative and customer-first approach. Amazon does not make its money through only one source, rather it generates money through different markets namely, retail, cloud service, Streaming service, and marketplace. Let’s delve into that. Retail The majority of the income of Amazon comes through its retail segment. It comes from selling goods online directly to the customers. Amazon buys goods from wholesalers at a less price and sells it by setting competitive prices. The company leverages the advantages of its own warehouses where it stores the goods and provides faster delivery. Apart from buying in a bulk from Wholesalers, Amazon also has its own range of products like Amazon Alexa, and Echo. Amazon Marketplace Other than selling its own products online, the retail giant has been labeled as the biggest marketplace on the earth. Amazon has built its marketplace that aggregates sellers with the buyers. In simple terms, the marketplace is a thousand small stores with different items inside the giant store. Amazon provides its high-quality services to the sellers through its Fulfillment by Amazon (FBA) program. Here Amazon packs & delivers the parcel to the customers’ doors. The behemoth earns a handsome commission from its third-party sellers. Cloud Services Amazon also provides cloud infrastructure services to the businesses who are digitizing their businesses. The company charges them on a yearly subscription basis. The reason for Amazon’s stepping into cloud infrastructure services is an increasing trend of digitization. Businesses have understood the importance of digitization which led them to create their business on the internet. Amazon Prime Apart from the above-mentioned revenue streams, Amazon also provides its customers with streaming services and free deliveries. An Amazon Prime subscription allows viewers to watch unlimited amazon original TV shows and movies, not to mention unlimited music. With this subscription, users can also purchase their items on the Amazon store with unlimited free deliveries. Also, those who love to read through Kindle, they can read countless books online. So, these were the revenue segments from which amazon earns its revenue. , Amazon earned revenue of 87.4 billion in Q4 of 2019 with these revenue streams. According to the reports 3. Netflix Business Model With its unique & sustainable software as a service(SaaS) based business model, Netflix has established itself as a leading streaming service in the globe. It has become a synonym for entertainment.  According to the latest numbers, Revenue earned by Netflix in Q1 of 2020 is $5.77 billion which is more than Netflix had expected. It’s a SaaS platform that brings new shows, movies, documentaries, etc. to the viewers. With the help of big data and data analysis, Netflix serves its customers with personalized content. It helps the company to buy and create content that their viewers like. Customers can purchase a plan as per their needs on a monthly or yearly basis. They can watch their favorite shows and movies on their phone, tablet, TV, and laptop. To attract new customers, Netflix allows them to register on the platform and gives them a free month trial. Once it completes, customers can choose any of the following plans as per their needs. Note that Netflix does not have the same pricing structure around the world. $8.99 per month This plan doesn't provide HD viewing and its programs can only be watched on a single screen at a time. Basic, $12.99 per month The standard Netflix plan provides HD videos and allows for two simultaneous viewings. Standard, $15.99 per month  The Deluxe subscription offers customers the ability to watch four screens at the same time. It's also the only item on Netflix that offers a 4K viewing option. Premium, Netflix does not have the same plan for each county. When last time Netflix hiked its pricing in the USA and UK, it started a new plan in India which was more affordable. It allows mobile users to buy a plan that can only be watched in a single mobile device. So, Netflix understands and goes through the data and its users’ behavior and keeps changing its plan accordingly. Now as I said, Netflix also has a provision for DVD and blu-ray video streaming platforms. Below is the list of DVD Plans. Apart from streaming service, Starter plan  ($4.99/ month) A basic plan allows you to watch one disc at a time with a two-disc limit per month Standard plan ($7.99/ month) Users can watch one disc at a time with an unlimited amount of discs throughout the month. Premier plan ($11.99/ month) A premier plan lets users watch two discs at a time with an unlimited amount of discs per month 4. Airbnb Business Model Airbnb is considered an Uber for accommodation. Today, Airbnb has 150 million users and 6,50,000 of hosts worldwide. As uber connects taxi owners with nearby customers, Airbnb connects hosts with travelers. Travelers roaming in different cities can easily find their accommodation needs through the Airbnb platform. These accommodations are basically listed properties of people who have an extra property. They are called Host and they can earn by listing a property on Airbnb. Like Uber, Airbnb also does not own any property, it aggregates travelers with hosts. If you will go through Airbnb’s detailed business model, you will understand . how Airbnb Makes money Airbnb has a simple listing procedure for hosts. Hosts can simply update their pricing, amenities, and city, Airbnb sends their freelance photographer to take perfect photos of their property for listing. Also for travelers, the booking process is easy. They can filter their property by price, city, & amenities, and then book their property. Hosts can go through travelers’ profiles and their past stays and accept the request. They both can rate and review each other. Airbnb’s revenue generation process is a little bit different than Uber. Airbnb charges both its hosts and guests for using the platform. The company charges 3% from their hosts and 5-15% from their Guests. What’s new In Airbnb Airbnb has found its place in Unicorn company due to its flexible business model and its policies. Take, for example, Airbnb has recently , which include extended stays, Covid-19 responders stays, and online experience. These steps have made it possible for the company to become a billion-dollar company. launched its new programs Conclusion Understanding your customers’ needs and their behavior helps you find a perfect and sustainable business model. You must take some time to consider your options. Each of these unicorn companies has a different business model but still, they earn a fortune through it. You could also develop a new business model that takes you to the billion-dollar club by exploring the untapped opportunities and new markets.

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