Insight About Amazon’s New Trucking App
Online shopping giant Amazon has taken notice of the amount of freight transportation involved in the moving of their products to customers. The company is currently developing an app that matches drivers and shippers. The app will aim to help strengthen their place in the trucking industry.
Uber shook things up in the world of transportation with their decentralized ride-sharing strategy. Many in the freight industry acknowledged that their industry was quite a bit different than that of simple ride sharing. However, many also took notice of the success of this model. Now Amazon is aiming to launch an app that makes it easier for drivers to find shippers that need goods transported.
Amazon has a vested interest in this service, as it makes it easier for them to speed up deliveries and avoid delays. The decentralized model would effectively eliminate the middleman, in this case a broker. This third party typically charges a commission of over 10%. Eliminating this cost would help make freight transportation more affordable.
The app will be very trucker-centric, offering everything from real-time pricing to driving directions. Truck-stops and recommended routes will be suggested, and the app may even come with tracking and payment options.
This simplified approach to freight shipping would free up much of the middle-tier trucking market from broker fees that hold them back from achieving optimal results. Amazon isn’t alone in pursuing this strategy. Trucker Path and Convoy also provide similar services, meaning the trucking industry has already seen value in this type of strategy.
This would also help to mitigate rising shipping costs for Amazon. Easier scheduling could be exactly what the company needs to truly improve their business model.