Uber Adds Trucking Brokerage Firm
Uber’s efforts to break into the long-haul trucking industry have been well-documented in recent years. The transportation giant acquired Otto in 2016, and they’ve recently enlisted the help of a team with a history of handling freight brokerage.
The team was behind a Chicago-based project last year, and their experience may help Uber become more proficient when it comes to logistics management. 4Front Logistics’ five employees joined up with Uber last year, and their experience in connecting manufacturers and retailers makes Uber stand out in a fragmented market full of smaller brokerage firms.
Uber hasn’t been without its controversy, as a legal battle resulted from its $680 million acquisition of Otto and their self-driving kits last year. While this battle rages on, improved brokerage opportunities and logistical capabilities will serve as a big step for the company in its quest to change the freight market.
Uber’s Chief Executive recently tweeted a picture of a large white commercial truck, the words “Uber Freight” on the side.
Uber has invested in a wide variety of new technologies, and has taken step to market these to independent truckers and small trucking associations.
More startups have rushed into the trucking industry as of late, with more companies looking to bring budding techs to an industry which could benefit greatly from them. 4Front Logistics had its broker license revoked last month by the Department of Transportation. While the reason for this isn’t clear, many companies experience this problem after they fail to provide proof of insurance.