On-demand shipping and trucking is a growing trend in the transportation industry. It allows businesses and consumers to get what they need when they need it.
While there are many benefits to on-demand transportation, there are also some drawbacks that you should be aware of before deciding if this type of service is right for you.
What Is On-Demand Shipping and Trucking?
On-demand trucking is when you find a truck to transport your shipment without making arrangements ahead of time. A load matching platform connects shippers with truckers who have available capacity.
Challenges in the Transportation Industry Before the Revolution of On-Demand Shipping and Trucking
These challenges in the transportation industry led to the need for on-demand trucking:
- High brokerage costs
- Security risks
- Tedious manual operations
- Poor customer service
1. High Brokerage Costs
The cargo industry has a lot of middlemen who charge a lot of money to bring in new shipments. Carriers would have to agree to whatever commission fees that the broker asks for – making it more expensive for people looking to start new shipments.
If you want to ship things, you need to use digitization. With digitization, high brokerage fees are avoidable.
2. Security Risks
The lack of technology meant that the carriers have very little information about the truck drivers or where the shipment is. Lack of data often leads to problems and makes it challenging to handle emergencies.
On-demand trucking and shipping businesses do not have this problem because they have better communication systems.
3. Tedious Manual Operations
Carriers or trucking business owners usually have a lot of work to do. They do a lot of manual tasks, like talking on the phone to communicate with other people about shipments.
4. Poor Customer Service
People want things quickly and conveniently. The freight industry has not yet caught up to this way of thinking. The lack of urgency in providing fast deliveries leads to issues such as delays, loss of shipments, damaged items, high shipment fees, incomplete orders, and more. On-demand trucking and delivery service is the solution to all of these concerns.
Partnering with a 3PL like Dropoff can help businesses provide a better delivery service for customers.
9 Benefits of On-Demand Shipping and Trucking
The main benefits of on-demand trucking and shipping for carriers are:
1. Live Tracking
You will be able to see where your truck is with the help of an on-demand trucking app. You will be able to see the vehicle’s progress and when it will reach its destination.
2. Quick Payment Methods
There are different ways to pay for shipping after your package is delivered successfully. An on-demand trucking app estimates how much it will cost to ship something.
3. Scheduling Is Flexible
You can use an app to book a shipment without any problems – at your convenience.
Truck drivers often experience trouble finding new shipments and delivering them to their destination. But the situation is different with the on-demand transportation solution.
While on this topic, learn more about the difference between shipping and delivery.
The main benefits of on-demand trucking and shipping for drivers are:
4. No More Middleman
With a trucking service app, drivers never worry about driving without cargo. In addition, drivers could save the commission fee they usually give to a broker.
5. Performance Data
An on-demand trucking app is an excellent thing for truck drivers. They will never be underpaid because of it. The reviews and ratings from other drivers will help them get more jobs.
6. Access to More Information
With an on-demand trucking app, drivers receive information and services like tracking, navigation, and climate alerts. They are also able to chat with shippers if they have any concerns.
The main benefits of on-demand trucking and shipping for companies are:
7. Increased Rate of Efficiency & Productivity
The business will see an increase in the ROI (Return on Investment) because both the shippers and drivers are happy with the services. There is less chance of any miscommunication during the whole process of delivering the shipment.
8. Business Growth
It is possible to make more money than ever with on-demand shipping and trucking. It involves optimizing your logistics operations to the best of your ability. Are you interested in learning more? Here’s our ultimate guide on logistics optimization.
9. More Control Over Business
You will have more control over your company when you see all the data about what happens daily. You will also be able to contact the driver quickly if there is an emergency.
What Does the Future Hold for On-Demand Shipping and Trucking?
Technology will continue to advance in the trucking industry. While the growth of on-demand trucking may be slow-moving, it will increase as people become more used to on-demand services.
On-demand trucking is becoming more popular because of the volatility of the market, the rising cost of contracts and spot rates, and the popularity of trucking apps.
Check out our blog article on current logistics innovations and industry trends!
What to Expect in 5 Years
The trucking marketplace is getting increasingly connected, making it easier for shippers and truckers to work together. The trucking process will become more efficient, which will help optimize supply chains.
Furthermore, on-demand trucking offers shippers a way to do business that is both proven and flexible. With real-time visibility, technical capacity, and a more straightforward way to access settlement, on-demand trucking is an excellent development in the transportation industry that will continue to grow.
Top 5 On-Demand Transportation Apps
1. Uber Freight
The Uber Freight app helps manage bookings, fleets, and notifications. It also has analytics, feedback, and reports to help you with your work. The app has a consumer interface that is easy to use and allows different service roles.
Convoy is a company that wants to reduce waste. They fill every truck and trailer to its total capacity, reducing the amount of garbage production.
Transfix is a trucking app that is quick and easy to use. It has a unique feature that makes it different from other apps. Its ability to quickly give you several accurate quotes makes it stand out.
GoShare is an app that connects people who need things moved with people who have trucks or vans. The app promises to deliver within an hour and gives a free cost estimate before you confirm your ride.
Bungii is an app that allows users to take pictures of things they need and then connect with local truck drivers. The app also offers in-app payments and ratings.
Overall, it’s just more beneficial to outsource your logistics operations to a 3PL.
The trucking industry is booming and shows no signs of slowing down. That’s good news for entrepreneurs who are looking to get into the on-demand shipping and trucking space. Still, it means that competition is fierce.
If you’re thinking about using on-demand trucking at your company, make sure you do your research and understand what it takes to be successful.