With approximately over 93 million monthly active users across the globe, Uber Technologies, Inc. is a technology company that all of us know about. In between ride services, food and package delivery, and even freight transportations, the company has operations in over 900 metropolitan regions worldwide.
With over 70,000 carriers on Uber Freight’s network, it booked $301 million USD in revenue just in the first quarter of 2021. But that’s only a small fraction of Uber’s overall revenue, and executives at Uber have high hopes to increase freight profitability.
And in the search for higher revenue, Uber Freight has recently acquired Transplace, a shipping software company, for about $2.25 billion USD. By upgrading its freight division with a supply chain technology firm, Uber Freight can now expand the number of services it offers and make up for any shortcomings in efficiency they may have had.
As one of the biggest managed transportation service providers in the North American freight industry, Transplace had more than 1,000 customers and annual revenue of $3 billion USD prior to the acquisition by Uber Freight. By collaborating with Uber, their platform will be able to handle the entire transportation process from beginning to end.
Uber Freight generates real-time market prices, which are based on real-time data. Elements such as driver status, freight distance, cargo type, and more factor into giving market quotes, and the more accurate the information, the more accurate the quotes will be. Transplace can then handle the supply chain across more modes of transportation. From the sea, air, multimodal, to FTL and LTL, Transplace has it covered. The union of the two will propel Uber Freight’s competitive advantage to much higher levels, and allow them to stand out in the market.
With Japan’s bullet trains and Uber Technologies, Inc. looking into the freight industry to increase their revenue, maybe it is time for more businesses to consider doing the same thing! What are some other companies that have branched out to freight delivery? Share your thoughts with us on Facebook or LinkedIn!