FRANKFURT (Reuters) – AMERICAN ride-from the company’s Uber (UBER.(N) the launching of a cargo platform, in Germany, in which local technology startups are in a race to grab a share of the european a $500 billion transportation to market.
FILE PHOTO: A screen displays the logo of the company is Uber Technologies, Inc. on the day of the IPO on the New York Stock Exchange (NYSE) in New York, New York, USA, on 10 May 2019. REUTERS/Brendan McDermid/File Photo
Germany is Uber Cargo, the second market to go live on the continent, and second only to the Netherlands, an executive told Reuters, a further extension is in prospect when the activities are running smoothly in Europe’s largest economy.
In the United States of america, the Uber Truck is already connecting 48 continental states and generates more than $125 million in quarterly revenues.
Under the maverick founder of the Theo Kalanick, Uber’s previous tender offer for the adoption of the road-from services to Germany, and met stubborn opposition from the taxi companies, as well as politicians and the judiciary.
This time around, led by Kalanick, the successor to the Site Khosrowshawi, Uber has consulted with German officials, and the industry, in order to gain support for the freight business, said Daniel Buczkowski, Uber Cargo, the head of the European expansion.
“The change in leadership, we are really concerned with doing things the right way,” Buczkowski, who is German, told Reuters.
Uber will have to compete with the local population, including the Berlin-based start-up sennder that it has raised $70 million from a private equity house, Lakestar, and other investors in a $300 million valuation, and that has been a big presence in Europe.
The other technology players in the freight forwarding sector, Flexport, a full-service platform that is based in San Francisco that raised $1 billion earlier this year from investors led by japan’s Softbank Group (9984.(T).
Based In the united kingdom Zencargo and FreightHub, which is just as sennder and is based in Berlin, and also in the investments of late.
Buczkowski looks Uber Cargo ‘ s edge in its global reach and proven technology. “As a global company, we have the bandwidth to constantly innovate and develop new products and features to provide support for the whole of the market,” he said.
With the cargo platforms with a goal of capturing industry continues to be dominated by companies with 10 or fewer trucks, as well as to improve the efficiency trucks will be blank for 21% of the distance they have to travel.
Other income can come from real-time tracking of the shipment, and the automation of the payments made in the sector in which the trucking companies will often have to waste weeks chasing up invoices.
“The key is to get out of a lot of the value-added of this sector is the knowledge and understanding of how to, empty mileage,” said Nicolaus Schefenacker, the co-founder of the sennder, which was set up in 2016.
He told Reuters that, as well as her network expanded, it was easier to model and forecast the traffic flows in order to make sure shipments are in finding the right truck at the right price. Even though the transport of the tech industry’s pressure, the market is segmented, and sennder to see a change in the so-called ‘ full truck load market.
“The market is so big that I think a lot of players will be able to co-exist. This is also the way in which we think about Uber Cargo,” Schefenacker, told Reuters.
THE MAN IN THE MIDDLE
In contrast to Uber’s ride-hailing app, or a food delivery service Uber Cargo, you will act as a middle man in the market with an established pricing structure.
The money from the margin between the price paid by the customer, and the amount to be paid by the truck driver, the isolation of the type of complaints made by a lot of driving-from the drivers, who say they are struggling to earn a decent income.
Uber, with a market capitalization of $74 billion, that is focused on adapting its model to the United States, where there is a lot of drivers, the operators, to Europe, where family-run businesses predominate.
The apps will continue to face challenges, such as environmental concerns, being confronted with an industry that runs on diesel fuel to ensure drivers are not overworked, with long hours on the road.
The industry needs new recruits to the World Bank estimate that two-thirds of the German truck drivers will retire in the next ten years, which is a deficiency in the capacity of an industry, which handles more than 70% of the cargo.
Reporting by Douglas Busvine; Editing by Edmund Blair/Keith Weir