Once hot freight startups including Flexport and Convoy have been humbled by a shipping recession and Uber Freight CEO Lior Ron says pressure will continue.
Fuel costs may be a tipping point for carriers operating with little to no margin, according to Uber Freight CEO Lior Ron.
The freight transport sector has faced a volatile year, with a series of bankruptcies as a result of diminished freight rates and a lack of cargo as demand waned, but Lior Ron, CEO ofRon said Uber Freight is witnessing more carriers giving back lanes after bids, which could be an indicator of carriers unable to afford to run certain shipping routes.
The sharp decrease in freight rates and demand after the pandemic boom contributed to the demise of venture-backed darling Convoy. Flexport, another heavily funded logistics startup, recently hadhave dropped by more than half compared to a year ago, and are now below the pre-pandemic rates of 2019. Using data analytics, AI, and matching/routing solutions, Uber Freight just released a sea-to-sky emissions dashboard to provide full visibility and eliminate what's called,"empty miles," which add to costs, delivery time and climate impact. The company hopes to streamline the transit of freight which would cut down consumer costs and increase transport productivity.
"That translates into a 10-15% increase in income, not even including the energy savings," Ron said."Our goal is 80% clean transportation across global brokerage shipments by 2040. It's an ambitious goal, but we want to hold ourselves accountable. We have a path, a model, and have made the right investments to get there."
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