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In both B2B and B2C sectors, on-demand has become a key disruptive force. This revolutionary way of delivering services has companies like Uber as its most high profile success but is beginning to roll out much further and especially in industries such as logistics. The trend towards on demand trucking is being driven by the need for more convenience, for customers when ordering delivery services and for drivers looking for a more flexible and versatile way to work. The reality is that there are benefits for everyone in the growth of this industry.
• Following a blueprint. Thanks to the success of on demand business models in the ride sharing industry there is a fairly comprehensive blueprint in place to transfer this kind of approach to the logistics sector. This includes established technology that connects customers with drivers and enables ratings to be given each time so that a high standard of service can be guaranteed.
• New business opportunities. On demand trucking delivery is still a fairly embryonic sector but one that also has a lot of potential. There is plenty of scope for ambitious drivers to be able to create a profitable business, particularly if they are located in areas of high need.
• Convenience for customers. The ultimate aim of the on demand sector is to improve convenience for those who are using it. This works by connecting customers – individuals or enterprises – to owner drivers who are looking to make more money. The customer places a job via the app and this is then sent out to a range of local drivers who can take the job quickly. For the customer, this is often a much more attractive alternative than relying on a more traditional delivery service that may take much longer to accept and deliver.
• The right courier management system. There are many different factors involved in the pricing for on demand trucking, including the mileage involved, any parking fees and the challenges of the job. However, the right courier management system can help to ensure that customers get good value and owner drivers get more opportunities to work.
• A simple system. For owner drivers looking to get set up in an on demand trucking app there are likely to be few barriers to entry. Insurance will be essential – this should cover the vehicle being used for commercial purposes. It’s also possible that some local authorities may require commercial licences from those entering this economy. Plus, owner drivers will necessarily have to have GPS technology in order to be able to successfully work with the software. However, there are likely to be few other requirements for those keen to establish themselves as a go to for on demand trucking in their local area. Many of the business models being built are likely to cover off all the legal issues as part of the registration process.
There are a number of key benefits to the on demand trucking sector that potentially give it longevity – and ensure it will be supported by both customers and owner drivers alike.
With up to 3,000 new loads per day, saving over 250 million miles per year, the impact for the UK's Carbon footprint alone is huge.