Uber, best known for its alternative and industry disruptive taxi service, is now making waves in the road transport industry with its recent expansion into logistical services. It doesn't stop there with an "Uber Everything" project running to explore even more possibilities.
UberRush is now operational in New York, Chicago and San Francisco and will be progressively rolled out globally. UberCargo has been launched in Hong Kong which takes their road logistics one step further with an Uber-Van Delivery for quick parcel moves of odd sizes and shapes, at all hours of the day. This expansion of services cleverly utilises Ubers existing technology and crowd sourcing opportunities. These developments are brilliant for SME's as it enables them to leverage cost effective, on demand delivery to distribute their products. Learn more from this YouTube clip.
As yet large companies are not really embracing these new Uber services. Their concern is the lack of insurance and guarantees the cargo will arrive safely, or even at all. I am certain these issues can be overcome though. Even Amazon has discussed launching a service similar to UberCargo called “On My Way”, for the last leg of their shipping transport needs.
Uber's investors are excited about the potential for growth from this segment on top of current growth of 300% per annum. With revenues now exceeding USD10 billion, the current valuation of the business is approaching USD50 billion. To put Uber's revenue into perspective DHL's revenue last year was EUR14.8 or approximately USD 16.3 billion.
City by city Uber will rapidly become one the biggest local, real-time logistics providers in the current market. There’s no doubt Uber will play a fundamental role in the future of local logistics, to what extent though, we are yet to see.
One thing for sure though is that local courier transport business will soon come under as much pressure as traditional taxi companies have.
All for now,