We all know the Uber model for getting a ride: open an app, see the price, and a car shows up. The company applied that same on-demand thinking to the trucking industry, creating a digital platform to connect shippers with carriers. But for a business moving hundreds or thousands of shipments, the big question is whether this model holds up at scale. So, what is Uber Freight beyond the simple app interface? Is it a viable tool for managing a complex supply chain, or just a spot-market solution for occasional loads? This guide explains how the platform truly works, its full range of services, and what high-volume shippers must consider before integrating it into their logistics strategy.
The concept of Uber is well accepted in the United States. Using an app, a person seeking a ride inputs their ride request information. Almost instantly, a price quote pops up, sometimes with several options. The rider accepts the service with the best fit and can track the car’s arrival at their door. During the ride, they can track it to the destination via GPS in real time. Fast payments and easy payments are a hallmark and consolidated in the platform. Sounds easy? It is. Uber liked the concept so much, it spread its wings, expanding the concept into Uber for trucks. What is Uber Freight? Uber Freight launched in May, 2017. Using the technology platform (via Uber Freight app or website), shippers can input load details into the system. Truck drivers or dispatchers provide market prices and agree to the terms, and within minutes, they can make a match. Uber is not the only service of this type, though it’s so well known that it’s frequently substituted for the generic term “ride-sharing service.” Just the same, Uber Freight is not the only digital freight brokerage service. Along with the Uber Freight app, digital freight brokerage companies with smartphone-enabled apps include Transfix, Loadsmart and Cargo.
What is Uber Freight?
Uber Freight applies the familiar on-demand model to the trucking industry, operating as a digital freight brokerage that connects shippers with carriers. Through its app and web platform, shippers can get instant quotes, book loads, and track their shipments in real time, from pickup to delivery. This technology-first approach is designed to replace the traditional, often inefficient, process of booking freight that relies on phone calls, emails, and a general lack of price transparency. For businesses that ship a high volume of goods, this model offers a way to streamline logistics, gain much-needed visibility into their supply chain, and potentially secure more competitive rates without the typical back-and-forth negotiations. It’s a modern solution aimed at making freight shipping as simple as hailing a ride.
For companies managing hundreds or even thousands of shipments, the efficiency gains from a platform like this can be substantial. Instead of dedicating significant time and resources to manually finding and vetting carriers for each load, a digital brokerage provides a scalable alternative. This simplification is a key part of its value, helping businesses reduce distribution and fulfillment costs by cutting down on administrative overhead and providing access to a vast, pre-vetted network of drivers. By centralizing booking and tracking, it allows logistics managers to focus more on overall strategy and less on the tedious details of individual shipments, making it an attractive option for optimizing complex supply chains.
Key Company Statistics
Since its launch in 2017, Uber Freight has quickly become a major force in the logistics industry, and its numbers tell a compelling story. The platform now manages an impressive 18 million shipments each year, supported by one of the largest digitally-enabled carrier networks available. This massive scale and reliability are why one in three Fortune 500 companies now use its services. The financial scope is just as substantial, with the company managing over $20 billion in freight. This is all powered by a combination of advanced AI and deep industry knowledge, drawing from over two decades of data to optimize routes and pricing. For shippers, this translates into a powerful, data-driven option for carrier diversification and managing complex logistics needs.
How Digital Freight Brokerage Works
The technology platforms like the Uber Freight app allow shippers and truck drivers to match needs and services, to ultimately deliver the freight where it needs to go on a one-time basis. Shippers input information on the pick-up spot, the weight and number of pallets, the destination, the timing, and other pertinent details. Truckers are happy because they receive fast payments, within several days to a week. Once the freight is picked up, shippers can monitor their shipments online in real time. And on delivery, Uber Freight provides a proof of delivery photo along with a photo of the signed bill of lading, stored on the shipper platform. This simplifies the paperwork and requires no faxing. Digital brokerage services remove the human middle man – the broker – though the companies have customer service available and rely on that good service to stay in business. Instead of brokers on the phone playing matchmaker, the technology platforms act as the broker. Of course, the companies have freight brokerage licenses. They vet a trucking company like a traditional broker would do. Uber Freight’s vetting, for example, makes sure that the trucking company has the proper inspection and safety history, as well as the equipment needed for the Uber Freight requirements. As part of the Transfix onboarding process, carriers and drivers need to provide all compliance information. Once in the system, the trucking company can bid on any proposals that meet the criteria.
Core Services and Logistics Solutions
Beyond its core digital brokerage platform, Uber Freight has expanded its offerings to cover a wide range of logistics needs. This evolution positions it as a more comprehensive solution for shippers looking to manage different facets of their supply chain through a single, tech-forward partner. From small LTL shipments to complex international freight and managed services, the platform aims to provide a versatile toolkit for modern logistics challenges.
LTL, Multi-Stop, and Cross-Border Shipments
Uber Freight extends its services beyond full truckloads to accommodate a variety of shipping needs. The platform offers less-than-truckload (LTL) solutions, which is a great option when you don’t have enough freight to fill an entire trailer. This allows for more flexibility and cost-efficiency for smaller shipments. They also handle more complex logistics, such as routes with multiple stops or cross-border shipments between the U.S., Mexico, and Canada. While having access to a broad LTL network is a great start, ensuring you’re not overpaying requires a deep dive into your agreements. Many shippers find significant savings through a professional LTL contract optimization that analyzes pricing, accessorials, and service terms.
Intermodal, Air, and Ocean Freight
Recognizing that not all freight moves on the road, Uber Freight provides multimodal transportation options. Their intermodal solutions combine different forms of transport, like truck and rail, to move a single shipment. This can be a highly cost-effective and sustainable choice for long-haul freight. For more urgent or international needs, the company also facilitates air and ocean freight, connecting shippers with global capacity. Choosing the right transport method is key to managing costs and timelines. A thorough modal optimization analysis can reveal the most efficient and economical way to move your freight, whether it’s by road, rail, air, or sea.
Managed Transportation Services (3PL & 4PL)
For businesses looking to outsource their logistics operations, Uber Freight offers managed transportation services. Acting as a third-party logistics (3PL) or fourth-party logistics (4PL) provider, they can take over the management of some or all of a company’s supply chain. This allows your team to focus on core business activities while leveraging Uber Freight’s technology and network to handle transportation planning, execution, and analysis. Partnering with a 3PL can be a game-changer, but the contract you sign is critical. To make sure you’re getting the best possible terms and service levels, it’s wise to seek expert help with 3PL contract optimization, which can prevent hidden costs from eroding your budget.
Uber Freight Exchange for Contract Bidding
Moving beyond the on-demand spot market, the Uber Freight Exchange is a dedicated platform for freight procurement. This tool allows shippers to streamline their contract bidding process by running RFPs and securing dedicated capacity directly with carriers in their network. It’s designed to make the traditionally cumbersome procurement cycle more efficient, transparent, and data-driven. Securing competitive bids is the first step, but the next is understanding how those rates stack up against the market. Using industry benchmarks to evaluate your contract bids ensures you’re not just getting a good price, but the *right* price for your unique shipping profile.
Last-Mile Delivery with Uber Direct
The final step in the supply chain—getting goods into the customer’s hands—is often the most critical. Uber Freight integrates with Uber Direct to offer an on-demand, last-mile delivery solution. This service leverages Uber’s massive network of drivers to provide fast and efficient local deliveries, which is especially valuable for retailers and e-commerce businesses aiming to meet consumer expectations for speed. This integration helps bridge the gap from the distribution center to the final destination. The last mile is often the most expensive part of the journey, so finding ways to reduce distribution and fulfillment costs is crucial for maintaining healthy profit margins.
Who Needs Digital Brokerage?
The rise in digital freight brokerage comes on the heels of a growing truck driver shortage. That’s caused the trucking company prices to rise and it’s delayed some shipments in the supply chain. Shippers with smaller or less regular hauling needs are at a disadvantage, in that they need to rely more on spot market prices. Without long-term contracts locking in a price and guaranteeing capacity, these shippers are at risk of big pricing fluctuations and shipping uncertainty. Fortunately, in 2019, the capacity demands eased up somewhat from the previous few years. DAT Solutions tracks demand and capacity in their load-to-truck ratio, the ratio being the number of loads posted on their DAT Load Boards to the number of trucks posted. In June 2019, 3.13 loads were posted for every truck, down from 6.29 in the same month in 2018 and 4.4 in June 2017. That is good news for shippers, but the data is an average across the country, and some markets, lanes and directions have more difficulty than others. The Uber Freight platform focuses on small and medium size shippers in the supply chain. Shippers in these markets may not have their own transportation management systems to help manage their freight. Some rely on paper, email, Excel spreadsheets, and fax service instead. The digital shipper platform can improve the company’s business practices and help bring their transportation needs into the modern age. While the focus is on small and middle size markets (owner operators and small fleets), digital freight brokerage companies are used by some large shippers as well, who supplement their needs with additional capacity. Land O’Lakes, for example, was an early adopter with the Uber Freight platform. Anheuser-Busch works with almost all the digital freight brokerages. The smaller start-ups are forging a new path with shipments online, citing the large traditional brokerage firms as their competition, rather than seeing each other as the main competition. Large brokers, some of whom are also carriers, are investing in the technology and jumping into the field as well. J.B. Hunt now offers a transportation management system that allows shippers and truck drivers or dispatchers to make a digital match. Even Amazon is getting into the digital freight brokerage business in the supply chain.
Pros and Cons of Digital Freight Brokerage
For shippers currently using a manual process, the digital freight brokerage service can easily streamline the booking process, saving time and effort. Some of the services, like Uber Freight and Amazon, are cutting their prices to gain a market advantage, which is good for the shippers in the short run. Rather than relying on a human broker, who may not be available during some less traditional business hours, the digital services offer 24/7 access for both carriers and shippers, allowing matchmaking at a time convenient to the user. Some services offer rating services as well, making it easier for both sides to see how the other is rated by peers. Automation can increase efficiency, eliminating the manual and clerical process that has not been traditionally efficient. Typically, the brokerage process involves phone calls, waiting, more phone calls, faxing and other paperwork. The digital matching process reduces costs for shippers, as it decreases the labor costs on both sides to find and book a carrier. Algorithms like Convoy’s use artificial intelligence to learn a truck driver’s behaviors and preferences, so it can recommend more appropriate loads to take on. Plus, pricing is transparent for shipments online and easy to understand, without requiring a third party to fax over information or channel it. The downside for now is that these brokerages offer full truck load capacity only. They offer dry van, reefer or flatbed options, but may not have the specialty services required by a shipper. It’s also harder to establish a relationship with a carrier using a one-off service. ### Features for Shippers For businesses that manage a high volume of freight, digital brokerage platforms offer a compelling set of tools designed to simplify the shipping process. These platforms act as a centralized hub where you can connect with a vast network of carriers, moving away from the traditional, time-consuming methods of booking freight. Instead of endless phone calls and emails, the technology handles the matchmaking, allowing your team to focus on more strategic tasks. This approach not only saves time but also provides greater visibility and control over your shipments, which is crucial for maintaining an efficient supply chain and managing costs effectively. #### Advance Rate Booking One of the most practical features for shippers is the ability to book rates in advance. Using an app or web portal, you can enter all your load details—origin, destination, weight, and timing—and receive an instant quote. This allows you to lock in a price and secure capacity without the back-and-forth negotiation typical of the spot market. For companies looking to supplement their primary carriers or find capacity during tight markets, this is a game-changer. It provides a reliable outlet for one-off shipments and can be an essential part of a broader carrier diversification strategy, giving you flexibility and helping to control transportation spend. ### Features for Carriers While it might seem counterintuitive, understanding the benefits for carriers is incredibly important for shippers. A platform that treats its carriers well attracts and retains a larger, more reliable network of drivers. When carriers are happy, they provide better service, are more likely to be on time, and are more invested in a positive outcome. This directly translates to a better experience for you, the shipper. Features that give carriers flexibility, fair pay, and recognition ultimately create a more stable and high-quality carrier base, which is a huge advantage when you need to move freight reliably and efficiently. #### Available Load Types Digital freight platforms give carriers the freedom to choose the loads that best fit their equipment and schedule. They can easily filter for different load types, such as dry van, flatbed, reefer, or even power-only, which gives them more control over their work. This flexibility is a major draw for owner-operators and small fleets who want to maximize their earning potential and reduce empty miles. For shippers, this means access to a wider variety of equipment and a higher likelihood of finding the right truck for a specific load, even for specialized or less common freight types. #### Transparent, Upfront Pricing A major pain point for carriers has always been pricing ambiguity. Digital platforms address this by providing transparent, upfront pricing for every load. Before a carrier even accepts a job, they can see exactly what it pays, eliminating the need for negotiation and removing any uncertainty. This clarity, combined with real-time tracking and facility insights, allows carriers to make faster, more informed decisions. As a shipper, this transparency works in your favor by speeding up the booking process and ensuring that the rate you see is the rate you get, leading to more predictable and manageable freight costs. #### Driver Earnings Access to a massive network of freight from reputable companies is one of the biggest advantages for carriers using these platforms. Instead of spending hours searching for their next load, drivers can instantly see available jobs from major shippers in their area. This consistent access to freight helps them keep their trucks full and minimize downtime, which directly impacts their bottom line. A stable and well-paid carrier network is a reliable one, meaning shippers benefit from a motivated and readily available pool of drivers ready to move their goods without interruption. #### Carrier Recognition Awards To encourage excellent service, platforms like Uber Freight have implemented carrier recognition programs. These awards celebrate top-performing carriers for their reliability, professionalism, and adoption of new technology. This system does more than just give drivers a pat on the back; it creates a performance-based culture that benefits everyone. For shippers, it provides an extra layer of quality assurance, as you can feel more confident that the carriers in the network are held to high standards. It incentivizes the kind of dependable service that is critical for keeping your supply chain running smoothly.
The Future of Digital Freight Brokerage
One advantage for everyone is that truck drivers can be more efficient, letting them book loads on return, so they’re not driving empty miles. The American Transportation Research Institute estimates that more than 20% of miles driven by trucks are “empty miles.” These are miles that could potentially be used to haul freight, but it’s often tough for carriers and drivers to coordinate the return loads. Convoy announced a new feature this year called Automatic Reloads, which uses an algorithm to coordinate and book loads in multiple segments, with convenient locations. This can be done when one load is booked. Truck drivers can accrue more billable miles and minimize the time between their hauls. This digital freight brokerage industry is in its infancy. In Uber Technology’s recent IPO filing, they cited the American Trucking Association’s statistics that the 2017 U.S. trucking market was $700 billion, of which the brokerage portion was $72 billion. Uber Freight estimated that their 2018 bookings were $359 million, only 0.1% of the total trucking market. And they expanded into Europe in 2019. The interest is already there. Even while focusing on small to medium size businesses, 1,000 shippers signed on with them, including giants like Colgate-Palmolive, in addition to the previously mentioned Land O’Lakes and Anheuser-Busch. More than 36,000 carriers contracted with Uber Freight, representing 400,000 drivers. Transfix boasts of clients like Target and Unilever. In a sign of acceptance of this newer booking system, SAP Logistics Business Network integrated the Uber Freight platform into their system, which is used by carriers and shippers, as well as freight forwarders and other types of logistics partners. They use it to share insights, data and to manage freight. Digital freight brokerage is part of the transportation as a service (TaaS) industry. Frost & Sullivan predicts that TaaS will rise to $79.42 billion by 2025, with digital freight brokerage encompassing $54.2 billion of that. TaaS involves telematics used to capture and transmit driver and vehicle performance data, which can be used for monitoring driver or truck safety, and truck efficiency. Currently the TaaS market is $11.2 billion.
The Technology Behind the Platform
So, what’s the engine running these digital freight platforms? It’s a powerful combination of smart software and massive amounts of data, all designed to simplify the complexities of shipping. Instead of getting bogged down in phone calls, emails, and spreadsheets, these services use technology to connect shippers and carriers almost instantly. This shift from a manual, often opaque process to a streamlined, data-centric one brings a new level of efficiency and transparency to logistics. At the core of this transformation are two key technological pillars that work together to make it all happen.
AI-Powered Transportation Management System (TMS)
At the heart of these digital brokerages is a Transportation Management System, or TMS. You can think of it as the central command center for all your shipping activities. This system helps manage every part of the process, from initial planning and booking to real-time tracking and final payment. By automating these critical tasks, a TMS saves a significant amount of time and reduces the risk of costly human error. For any shipper accustomed to juggling multiple systems or manual processes, consolidating everything into one platform simplifies operations and creates a single source of truth for every load, making the entire workflow much more manageable.
Data-Driven Insights
These platforms do more than just move freight; they generate and analyze huge amounts of data. By combining powerful AI with real-world logistics information, they give businesses better control and foresight over their supply chain. Once a load is picked up, you can monitor its journey online in real time, so you always know exactly where your freight is. Upon arrival, the platform provides instant access to a photo of the proof of delivery and the signed bill of lading, which helps eliminate paperwork delays. This level of transparency is crucial for effective reporting and KPIs, empowering you to make smarter, data-backed decisions about your overall logistics strategy.
Shipments Online and Shipware
Sometimes a shipper needs a full truck load delivered and sometimes they just need to send a handful of packages. Automation has many ways to save shippers money, streamline the process of choosing a carrier and service, and allow for management of the shipments online. Some companies help shippers choose the best shipping service based on variables like location, weight, package size, contents, shipping speed or delivery date. The right service for the right package can have a big impact on the bottom line. So can negotiating the right contracts. A shipper doesn’t need to have exclusive contracts, but they should be wise about what factors can be negotiated with each carrier. Shipware can help. After analyzing a shipper’s data and contract details, our experts can provide negotiation tips and coaching. While many companies have skilled negotiators, the executives might not have the experience or benchmarking information to understand what variables are open to negotiation, and by how much. Shipware staff members have more than 200 years of combined experience as carrier executives, with an insider perspective. Contract negotiation fees are self-funded from the savings, so companies are not spending their hard-earned capital. Shipware wouldn’t provide its services via this model if it weren’t a win-win.
Frequently Asked Questions
Is Uber Freight only for occasional shipments, or can it handle our company’s high-volume needs? While digital platforms like Uber Freight are fantastic for securing capacity on the spot market, they have grown to serve larger shippers as well. Many high-volume businesses use these services to supplement their primary carriers, find coverage in tight lanes, and diversify their logistics network. With features like the Uber Freight Exchange for contract bidding and managed transportation services, it’s a scalable tool that can be integrated into a broader, more complex shipping strategy.
How does a digital freight brokerage differ from the traditional broker we use now? The main difference is the process. A digital brokerage replaces the traditional back-and-forth of phone calls and emails with a technology platform. You get instant quotes, book loads, and track shipments through an app or website. This automates the matchmaking process, providing upfront pricing and 24/7 access. While the human element is removed from the initial booking, these companies still have customer service teams to help when needed.
What are the biggest advantages of using a platform like Uber Freight? The two biggest benefits are efficiency and transparency. You can book a truck in minutes instead of hours, which saves a significant amount of administrative time. The platform also provides clear, upfront pricing, so you know the cost before you commit. Plus, the ability to track your shipments in real-time gives you complete visibility from the moment your freight is picked up until it’s delivered.
Are there any limitations to using a digital-only platform for our freight? The primary limitation is that it can be harder to build deep, long-term relationships with specific carriers, as the platform is designed for more transactional, on-demand matching. Additionally, while their service offerings are expanding, they may not cover every type of highly specialized freight. It’s a powerful tool, but it may not be the single solution for every unique shipping requirement a business has.
If we use Uber Freight for spot rates, do we still need to worry about contract optimization? Yes, absolutely. Using a digital platform for spot freight is a smart tactic, but it shouldn’t replace your overall strategy. Your core carrier contracts are the foundation of your shipping operations and typically represent the bulk of your transportation spend. A well-negotiated contract provides stability, guaranteed capacity, and favorable terms that you simply can’t get on the spot market. Think of digital brokerage as a valuable supplement to, not a replacement for, a professionally optimized shipping contract.
Key Takeaways
- Think Beyond the App for Spot Freight: Uber Freight centralizes the entire booking process, from getting instant quotes to real-time tracking. This replaces the time-consuming back-and-forth of traditional methods, freeing up your team to focus on bigger-picture logistics.
- It’s a Versatile Tool for Complex Supply Chains: The platform isn’t just for full truckloads. With options for LTL, intermodal, and even managed transportation, it can serve as a single, tech-forward partner for many different parts of your logistics operation.
- Digital Tools Don’t Guarantee Optimal Rates: While platforms like Uber Freight offer efficiency and access to capacity, they don’t replace the need for a strong contract strategy. True cost control comes from combining these tools with expert negotiation and market benchmarks to ensure your core carrier agreements are competitive.
