UBER to disrupt the logistics industry through UBER Cargo
Uber has long been recognized for its innovative services, but the legality of its disruptive business model has been challenged by governments and taxi companies since its inception in 2009. These speed bumps have not slowed down their rate of innovation, and Uber continuously expand their international transportation network with additional services; UberRush for delivery in NYC, UberPool for ridesharing, UberBOAT for watertaxi in Instabul and the list goes on. Everybody recognize Uber´s disruptiveness in the taxi industry, but I would like to pay more attention to their extension of services into the commercial logistics industry through UberRush, especially their launch of UberCargo earlier this year in HongKong.
UberCargo is a clear statement from the company to offer a logistics service to both commercial and household, beyond just taxi and ridesharing services. This new experiment is taking place in HongKong in which users can request a van to arrive for pickup and deliver the goods to a requested delivery spot – you even have the opportunity to ride together with your goods. Like any other service Uber offer, they emphasize transparency by allowing users to track their shipments. Quite convenient! Even though targeting mostly businesses, imagine yourself buying loads of inventory for your new apartment at IKEA, or moving to another one – request for a “rent-a-van” through UberCargo.
UberCargo is in a beta version in HongKong, but with the Uber network stretching about 60 countries they have a potential to rapidly expand into other markets. They are progressively entering into the business of logistics, and an interesting reflection to draw upon after this trial is the potential extension of the Uber technology into more heavy-weight transport, rail road, air transport and so on. Not just being a logistics provider through mid-size vans, but also with other logistics modes. This might represents an additional avenue with the UberCargo. In addition, this type of service will change how companies think about their inbound and outbound logistics. Will Uber with its innovative business model and technology disrupt the traditional logistics companies with UberCargo in the same way as with the taxi companies?