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Amazon & Uber Digitize Logistics

The logistics of tomorrow is most certainly digital and data-based but traditional processes are still most common today.  This makes the industry cumbersome and slow. Truck transportation, for example, is a highly fragmented and decentralized sector. There are over 1.2 million trucking companies in the U.S. and every third truck on the road is driving empty. Digitization and innovation offer a remedy. 

The digital transformation of the logistics industry is already in progress and it is opening up unprecedented opportunities to enter new markets and restructure existing business models.

Many, companies are taking advantage of these new opportunities. The fact that the overall funding for transportation-focused startups doubled from $7 billion in 2014 to $14 billion in 2015 shows the increased interest in the industry, according to Rocketspace.com. Some are optimizing end-to-end shipping, freight rates or fleet management while others are more focused on storage or local delivery. 

Meanwhile, well-known companies originally not logistics-focused are devoting more and more attention to shipping. Online retail giant Amazon, after investing in a truck and air fleet, announced plans to launch a delivery service in February called Shipping with Amazon which will directly compete with UPS and FedEx. Uber, the most valuable startup worldwide, launched UberRush for last mile delivery and Uber Freight to connect carriers and shippers in the trucking industry.

These immense companies have different approaches on what to digitize and how to conquer the industry. Amazon is known for its innovative “chaotic storage” technology and its extensive use of robots.  Uber was more focused on autonomous cars and trucks until recently when one of its self-driving cars caused a fatal accident, putting tests on hold.

The following infographic summarizes what they have done so far and what else they have planned. Which strategy will bring success?

3 comments on “Amazon & Uber Digitize Logistics

  1. philipkayden12@gmail.com
    April 2, 2018

    This Is Really A Great Stuff For Sharing. Accounting Homework Help Thanks For Sharing.

  2. LouisSmith96
    April 4, 2018

    its very userfull information for me, thanks 

  3. UdyRegan
    July 10, 2018

    And this is the way that the world is supposed to move now isn't it? Everybody is looking for a greater amount of efficiency – a way to get things faster, a more secure way to track where their items is… I should think that if there are other companies that want to try and make a mark against these companies, they would really have to come up with an exceptionally novel way of ensuring that their things get to point A to point B!

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