If it seems that freight brokerage – both digital and traditional services – are popping up on a daily basis, it could be because they are, or it at least it seems that way. Digital freight matchers (DFMs) include familiar names such as J.B. Hunt 360, Convoy, CargoMatic, Haulfox, Transfix, HaulHound and Freight Rover. Most recently, Uber made major headlines as it entered the space.
The reason DFMs have become so popular is market opportunity and technological advances. Plus, there are few barriers to entry with relatively few capital risks – making it an attractive place for entrepreneurs to get their start. When there is over $700 billion worth of an industry pie available (and an estimated $50B in brokerage commissions every year), it’s natural that everyone wants a piece of that pie. Until the last few years, freight brokering was handled by someone sitting in an office manually matching trucks with loads. Technology has changed that. Now, with a few clicks of the mouse or taps of the finger, any trucker or carrier can instantly see available loads along their route. That lowered bar to inclusion has resulted in an explosion in the number of firms entering the business.