What Do Analysts Think About Uber’s Trucking Ventures?
It’s been well documented that Uber, the famed ride-sharing giant, has announced its interest in the freight industry.
With a reputation for shaking things up when it comes to transportation, the company revealed lofty ambitions to change up the trucking industry just as they did with public transportation. While they have the tech and the funding behind them, do analysts feel Uber will be successful in their efforts?
The company is off to a rocky start on their journey to become a major player in trucking. While their purchase of Otto last year kicked things into high gear quickly, not everyone was as excited as the management at Uber.
After making the $680 million purchase to acquire OttoMotto’s self-driving kits, the company was blasted with an unexpected lawsuit. Google executives maintain that an Otto employee worked at one of their companies, and took some secrets pertaining to self-driving sensor technology.
Given that this technology is the backbone of the self-driving kit, losing the use of it in a legal battle could mean Uber’s time in the trucking field is over before it starts.
This isn’t the only courtroom battle which could spell disaster for Uber. The company has also been in hot water for purportedly creating a hostile work environment. CEO Travis Kalanick recently took a temporary leave of absence amongst the controversy.
While Uber’s new model was reportedly designed to replace the outdated brokerage system, many in the field believe the company’s effort offers nothing special that a standard broker could not provide. Uber Freight, the app designed to connect shippers and receivers without the need for a middleman, has been a solid (though not outstanding) start for the company’s efforts.
While many analysts believe the company is not providing the revolutionary changes it promised, those at Uber believe things are going well so far. The company has reported they have a solid lineup of drivers using their app, and that they’re shipping freight from some of the biggest names in the country. Time will tell whether the embattled company will make more of an impact in trucking.