CAN AN APP POSE A THREAT TO THE LOGISTICS INDUSTRY?

Within the past two years the app that has taken over the taxi industry is expanding. And it may be a threat to the logistics industry. Yes, I’m talking about Uber – since the app started in 2009, it has exploded into the billion-dollar company we know today. Uber’s success has incited them to branch into several new industries: UberEATS, UberRUSH, UberCARGO, ect. The conglomerate now branded as UberEVERYTHING has started transporting things, not just people.

What does this mean for the logistics industry? As Uber raised the bar for taxis, by providing a better customer experience, it has the potential do the same for logistics. The thought is UberEVERYTHING gives our customers an alternative by putting shipping services literally at their fingertips; but as an established logistics expert, we know our industry experience minimizes Uber as a threat. The challenge for most 3PLs is to stay in front with technology – especially mobile technology – and drive their companies to continue to offer their customers ease-of-use tools that insulate them against the threat of apps or online shipping tools.

UberEVERYTHING definitely encourages industry change; advances in technology push every industry to adapt and grow. However, no app can provide the security and sophistication of experienced shippers and third-party logistics companies, like Kingsgate. With Uber, there is vulnerability that comes with not truly knowing the person or company shipping your items. Most shippers have high legal and safety standards each carrier must meet, ensuring they are qualified to safeguard the customer’s product. And while there will always be shippers who feel they need “least cost, no matter the customer’s cost”, the more professional shipper will usually look for the strategic partner with established relationships that build a level of trust customers can rely on.

We are our customers’ one point of contact, ensuring they have no worries when their shipment is in transit. Their product is tracked and monitored from point A to point B and any point in between. Experienced 3PL companies understand our clients’ needs and we provide the personal, trusted touch Uber cannot provide.

No matter how sophisticated an app is, it can’t replace the “We Can Take It From Here” assurance.

All the best,

Jeff Beckham, Partner

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