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Freight brokerage is a common entrepreneur business model. It's also mostly localized and commissioned. Every market has a variety of players (shippers, carrie
by alaskamiller 10y ago
Freight brokerage is a common entrepreneur business model. It's also mostly localized and commissioned.
Every market has a variety of players (shippers, carriers, brokers) in the game which brings volatility to pricing and where brokers can find arbitrage opportunities to earn themselves additional revenue.
The business is also cyclical, seasonal, meaning again highly volatile and the reliance on the brokerage model to maintain continuity in the marketplace.
Past the pricing level there's also multiple levels of bureaucracy to manage. Everything from documenting and confirming loads, rates, BoL, LTL, CoC. Lots of which is still manual and tedious on purpose.
Then you finally get to the scheduling, dispatching, and invoicing, which is Uber's area of expertise.
To play, Uber needs to tackle all three levels. Re-build the software layers, re-build the processes, then throw in from their deep pockets to take over territory one by one.