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Taxis are the most convenient way for people to get around—at least they were, until Uber stepped in. Uber and other ride-hailing apps changed the transportation game for tourists and residence alike. No longer do people rely on begging a friend for a ride, or waiting for city transportation to arrive. Not to mention, nominating a designated driver became a lot less necessary when you have access to one at your fingertips. The reasonable cost and convenience of Uber has increased its popularity immensely since its launch in 2009, and other companies have certainly noticed. In particular, Amazon seeks to take advantage of Uber’s most valuable skill: connecting people.
Amazon anticipates its new app to launch in summer 2017. Their app will change the way their packages are delivered by moving away from using big trucking industries like FedEx and UPS, and instead, employing small trucking businesses. In Uber-like fashion, Amazon’s trucking app will connect independent truckers to their facilities, which opens freight opportunities for truckers, and cuts delivery costs for Amazon.
Already, the company has made strides to save money by taking shipping into their own hands. Amazon-branded trucks, plans, cargo ships, and drones have all been introduced to the market. But, by hiring independent trucking businesses to deliver their goods, Amazon could save an estimated $1.1 billion annually.
Lucky for them, independent truckers are not too hard to come by. According to Small Business Trends, small, independent companies with less than six trucks make up around 90 percent of America’s trucking industry, and are heavily reliant on third-party brokers to bring in business. With the addition of this app, Amazon will eliminate third-party brokers that connect truck drivers with shippers and replace them with its own delivery platform. This switch will, in turn, cut the cost of commission for middle men entirely.
How does it work?
Business Insider states that the app will offer real-time pricing and driving directions, as well as personalized features such as truck-stop recommendations and a suggested “tour” of loads to pick up and drop off. It could also have tracking and payment options to speed up the entire shipping process.
When drivers accept a delivery using the Amazon app, they will be able to pick up and deliver goods faster than if they were to go through a third party.
What does this mean for small trucking businesses?
By turning to small trucking businesses instead of the big names, Amazon is tapping into the potential of an underused commodity. Independent truckers will be able to pick up and deliver more cargo without having to compete with FedEx and UPS.
With the addition of this new technology, the trucking industry as a whole will update its stereotypically outdated processes. This app will provide an easy way for independent companies to stay modern even if they do not have the same resources as big name businesses.
Plus, working hand-in-hand with Amazon in this manner gives small trucking businesses a major client, whose entire industry centers on its ceaseless need to deliver packages.
Overall, the introduction of this app by Amazon certainly opens many doors for small trucking businesses. While this app saves Amazon a lot of money, it also earns trucking companies a lot in return.
Need a little extra cash before this app is launched? Invoice factoring is the way to go. Check out how invoice factoring can benefit your small trucking business!
