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    27.330
    0.2%
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    0.720
    4.7%
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    12,881.580
    20.610
    0.2%
  • TLT.USA
    2.750
    0.100
    3.8%
  • TSTOPVRPM.ATLPHL
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    0.160
    6.8%
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    0.020
    1.1%
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  • ITVI.USA
    12,899.700
    27.330
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  • OTRI.USA
    16.060
    0.720
    4.7%
  • OTVI.USA
    12,881.580
    20.610
    0.2%
  • TLT.USA
    2.750
    0.100
    3.8%
  • TSTOPVRPM.ATLPHL
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    0.160
    6.8%
  • TSTOPVRPM.CHIATL
    1.860
    0.020
    1.1%
  • TSTOPVRPM.DALLAX
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    0.140
    12%
  • TSTOPVRPM.LAXDAL
    2.260
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    4.6%
  • TSTOPVRPM.PHLCHI
    1.260
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    3.3%
  • TSTOPVRPM.LAXSEA
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  • WAIT.USA
    103.000
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BusinessLayoffs and BankruptciesLogisticsNewsSupply ChainsTechnologyTrucking

Commentary: Uber Freight shows importance of people in logistics

The views expressed here are solely those of the author and do not necessarily represent the views of FreightWaves or its affiliates. 

The recent announcement of massive layoffs and the closure of 45 offices at Uber Technologies – and in particular, its CEO’s stated commitment to re-evaluating non-core, cash-burning businesses like Uber Freight – set the logistics world abuzz.

However, I would argue that it’s not in the way contributor Ryan Schreiber described. As he makes the case for Uber as an innovative disruptor in freight, he encouraged us to hear him out “before everyone starts celebrating the possible demise of Uber Freight.”

Celebrating the collapse of Uber Freight is not on the agenda at any brokerage of which I am aware. The industry professionals I know are disheartened that thousands of people have been left unemployed; that economic uncertainty and instability have been an unfortunate side effect of the health crisis that is COVID-19. Yes, Uber’s technology has transformed the industry in some ways. However, the capacity to undercut competitors by using transportation as a loss leader within a more profitable enterprise has had a far greater impact (and Uber isn’t alone on that front).

Empowering freight brokers with private digital freight marketplaces (Photo: Jim Allen/FreightWaves)
Empowering freight brokers with private digital freight marketplaces
(Photo: Jim Allen/FreightWaves)

Technology is important

Technology isn’t new to transportation. People were already using technology to benefit customers and employees alike; they just weren’t using the same strategy of being an application-only device. We know that automation is the way forward, enabling us to reduce redundancy, cut inefficiency and free up human time for more creative and impactful tasks.

What has happened, though, is that some have attempted to automate what was never meant to be machine-driven – the relationship between the shipper and its broker and/or carrier. That interaction between a freight customer and the person who understands the intricacies of its business cannot be automated. A freight transaction is far more nuanced and complex than, “Pick me up here at 8:15pm and drop me at the movies.”

In the current business environment, companies that deliver cost savings by sacrificing the human element in logistics should be thriving. Many shipping and receiving companies have been forced to close during the pandemic, but trucking companies stayed open. With fewer shippers and the same amount of trucks on the road, prices have come down over the last six weeks. These conditions should be the best thing going for companies with a less interactive model; one that requires less haggling and relationship management.

People at work at a freight brokerage.
Freight brokers are a key part of the freight process.
(Photo: Jim Allen/FreightWaves)

The importance of people

What we are seeing though, is that the need for smart, creative people who are passionate about their work – about helping other people solve the very real challenges of moving all manner of goods from A to B – has never been greater. The sheer magnitude of this international emergency has demanded all-hands-on-deck to keep the supply of critical healthcare supplies, groceries, fuel and other commodities moving. This has been a very humanizing crisis; millions have been affected and you would be hard-pressed to find a corner of the world that hasn’t felt the impact.

It has required every ounce of creativity, critical thinking and caring we’ve collectively been able to throw at it. Jacob Wegrzyn, my colleague and Vice President for the Caribbean here at Trailer Bridge, put it best recently when he said, “Seeing the goods we have brought to Puerto Rico in supermarkets, hardware and department stores, car dealers, and manufacturing plants makes me extremely proud.”

We need people who care about outcomes, who are accountable to their customers, involved every step of the way.

People at work on the brokerage floor at Redwood Logistics.
The brokerage floor at Redwood Logistics.
(Photo: Jim Allen/FreightWaves)

Shipping is fraught with constraints and each one you add to an algorithm makes it less effective. When something doesn’t go right (as we know happens frequently in this industry), the technology cannot always be depended on; people usually can be. In an all-technology environment there is no industry expert who is already up to speed on the situation just a phone call away, ready to jump in with alternatives. The technological solution hasn’t been designed by a professional who factored their knowledge, relationships and experience into the equation; who is ready to pivot quickly and move to Plan B if the situation requires.

It just doesn’t work (in any industry) to choose the tech first and attempt to find a problem for it to solve. Innovation and efficiency don’t necessarily mean lower touch, less personal services. In fact, the technology we have at our disposal today is helping transportation and logistics experts make more creative, innovative solutions all the time.

The human element is key. Computers and automation don’t fix traffic, trucks breaking down, appointments missed, or anything else that can go wrong in the supply chain. People do.As we look to help customers recover from the personal and economic turmoil caused by coronavirus, it’s as clear to me today as it ever was that empowering our employees with technology, not replacing them with it, is the way forward. Innovative, personalized, customer-centric transportation services pave the path to our collective recovery – and you just can’t automate that.

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Eric Masotti

Eric Masotti, Vice President of Logistics, manages Trailer Bridge’s fast-growing domestic full-service logistics division and ongoing expansion. Since earning his BS in Business Administration from UNC Chapel Hill and his MBA from the University of Florida, Eric has logged more than 15 years of experience in logistics and freight.

8 Comments

  1. So they pitched automation and digital to get funding to blow.

    Now they pitch people?
    Uber Freight was just another truck brokerage all this time? LOL

  2. Uber Freight was a daring attempt that failed. Now the legacy brokers are all hoping that they can go back to the days of no innovation and profiting on the hard work of truckers. Time will tell

    1. I don’t think we’ll ever return to “no innovation.” Transportation and logistics are rife with innovation, and it’s a good thing. As I said above though, where and how we automate makes a huge difference. We need to continue to innovate in the ways people can use technology, not in taking people out of the equation entirely to be replaced by tech.

  3. What do you expect someone who is getting paid to expand a brokerage division based on a dying model? “What I’m getting paid to do is a waste of time and money.”
    I’m guessing he doesn’t have the stones to tell his bosses that.
    It would also take the ability to think about how to innovate and lead rather than just list off the same old tires reasons why the status quo is “better “.
    Uber Freight had some implementation issues but us going down and important and inevitable road. Anyone leading the anti war wagon is putting a big red X on their resume for the future leadership rolls in logistics.

    1. I’m not sure which is the dying model? Pricing below market costs in order to gain market share or provide outstanding service to clients in a solution that values its employees. The Transportation industry is evolving on a daily basis from innovation and technology and no one can stop that from happening. That said there are different strategies on how you use this technology. Will you setup your staff in an assembly line model with focus of value proposition on tech or will your employees be the focus of your organization and the technology will allow them to do their job better? It may be a slight difference to some, but if you are an employee or customer working with those organizations you will be able to see the difference.

  4. Interesting how in an attempt to prove a point the author used an article that falsely claims Uber is losing Freight.
    You have to question the insights of a person that doesn’t not just question that but rather doubles down on it.

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