Uber has started out in the United States to make transportation easier. Uber has been established globally and has become so rampant in certain countries that many citizens no longer buy or use their cars.
A fourth quarter 2018 report in Europe showed that 20% of households did not apply for loans to get new cars and the number of family cars on the road greatly reduced. They attributed the cause of this to Uber.
Uber mode of operation
Uber operates on its app; it recruits drivers with a certain brand and category of cars and these Uber drivers make an income by driving those who order rides to their different destinations. It has become an incentive for people to buy cars, so they can have additional income by driving those in need of rides.
It has also become a disincentive for those who’d rather order rides and the good thing is that with Uber demand is more than supply especially in African countries.
Uber integrations and marketplace
Uber has thrived on making integrations, being a marketplace that connects demand and supply. The company now seeks to expand to trucks and freight, which is large scale road transport.
Uber has launched “Uber Freight”; it connects truck drivers with shipping companies and in doing that Uber has hired industry professionals from tech companies Airbnb and Box. They are Andrew Smith and Bar Ifrach. Smith will be the head of sales and Bar will be the head of marketplace.
They are both resourceful veterans and they moved their previous bosses forward and Uber is looking to make them do the same with their new freight arm.
Uber Acquisition of Trucking Company: Otto
Uber apart from hiring veterans has also acquired a trucking company; Otto since 2016 when they had made no public intent to start a freight arm. Uber Freight has already had 2 offices in the United States.
It has already started hiring multiple employees and seeks to work on features in its app to accommodate international expansion. It’s no news that the company is working a strategy to maintain or even exceeded the rave it has made internationally.
Uber freight has been on the eyes of investors, although Uber has not made any public announcement stating if they have any. But the likes of Amazon seek to buy out the freight in order to maintain dominance in the market.
The freight arm will certainly flourish in high-scale open economies and those whose economies rely on road transport.