Navigating the complexities of freight brokering is a formidable challenge, and Uber Freight is taking decisive steps to streamline and enhance productivity for brokers by driving their digital transformation.
This week, the innovative online logistics company unveiled its new initiative, Broker Access, a pioneering “capacity-as-a-service” program that empowers brokers of all scales to book and manage loads seamlessly through Uber Freight’s extensive carrier network.
“This is an especially challenging time for brokers,” Brooks McMahon, Vice President of Emerging Products and Business Development, emphasized in a blog post released yesterday. “As of September, the number of freight brokerages has experienced a significant decline of 16.7% in comparison to 2022,” highlighting the volatile market landscape.
He delved deeper into the economic pressures brokers face, stating, “The average broker is responsible for generating an impressive $1.2 million in gross revenue per employee, simultaneously grappling with intricate market dynamics, managing razor-thin profit margins, and meeting escalating customer expectations.”
Uber Freight’s Broker Access digitizes operations
Broker Access is designed to revolutionize the freight industry by digitizing and automating broker operations, facilitating effortless booking, execution, tracking, and payment for loads through a user-friendly self-service portal or streamlined API, EDI, or transportation management system (TMS) integrations. Uber Freight asserts that this program is poised to “supercharge productivity, elevate service levels, and drive substantial business growth for brokers of all sizes.”
Lior Ron, CEO, Uber Freight
Lior Ron, the visionary founder and CEO of Uber Freight, highlighted that Broker Access equips freight brokers with “the essential tools to not only optimize their freight operations but also to concentrate on growing their business and fortifying relationships across the supply chain.” He further remarked, “We are committed to advancing the freight industry towards a more efficient and interconnected ecosystem that is smarter, more effective, and generates value for all stakeholders involved.”
Moreover, Uber Freight emphasizes that Broker Access “opens the door to its extensive, proprietary network of tens of thousands of tech-savvy carriers, empowering brokers to reliably and efficiently serve their clients, all while mitigating risks of fraud in varying market conditions.”
Despite leveraging this advanced digital network, it is important to note that the broker responsible for booking and managing a load is still “the sole broker on the load,” according to Uber Freight. A company representative clarified that Broker Access entails “a per-load transaction fee for booked loads, with no additional setup or subscription costs.”
Uber Freight Broker Access features
The key features of Broker Access include:
⦁ A robust freight load booking system enabling brokers to book, manage, and tender loads efficiently through a self-serve digital platform or via seamless integrations with Uber Freight’s vast carrier marketplace.
⦁ Comprehensive broker control over load pricing, bid interactions, and carrier selection, accessible either directly or through an automated system tailored to each broker’s specifications.
⦁ Enhanced end-to-end visibility provided through real-time tracking, automated updates, and a centralized portal that ensures complete transparency across every shipment.
⦁ Proactive fraud mitigation and automated carrier monitoring solutions designed to minimize risks and guarantee reliability in an increasingly competitive marketplace.
Logistics firms comment on Uber Freight Broker Access
Ken Apple, Vice President of Engineering at Mariner Logistics, which is the first brokerage to adopt Uber Freight’s innovative solution, articulated that Broker Access will “benefit the industry by offering greater flexibility, improved coverage, and enhanced cost-effectiveness.”
Libby Whited, Truckload Manager at Seamless Logistics, an early adopter of Broker Access, expressed that the technology’s capabilities throughout the booking process “saves an immense amount of time for our team, with the dashboard providing invaluable tools for tracking loads, managing documents, and more.”
She added, “While we are still in the early stages of using Broker Access, we are genuinely excited about the growth potential it will unlock for our truckload operations, allowing us to expand our reach in areas of strength within the carrier network.”
Patrick MacKenzie, Chief Revenue Officer at TMS technology provider Alvys, noted that Alvys facilitates access for its carrier and freight broker clients to Broker Access, highlighting the value it brings in enabling them to “expand beyond their own network” and gain direct access to “vetted, high-quality capacity.”
Uber Freight, which oversees freight operations worth over $1.9 billion, provides essential freight services to major companies including Del Monte Foods, Nestle, and Anheuser-Busch InBev.
Paul Demery is a Digital Commerce 360 contributing editor covering B2B digital commerce technology and strategy. [email protected].
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How does Uber Freight’s Broker Access improve transparency and mitigate fraud risks in the logistics industry?
**Interview with Brooks McMahon, Vice President of Emerging Products and Business Development at Uber Freight**
**Editor:** Brooks, thank you for joining us today. Uber Freight recently launched its Broker Access program. Can you explain what this initiative means for freight brokers, especially considering the current challenges in the market?
**Brooks McMahon:** Absolutely, and thank you for having me. Broker Access is designed to provide brokers with the tools they need to streamline their operations under increasingly challenging market conditions. With a significant decline in the number of freight brokerages—16.7% since last year—brokers are under immense pressure to generate revenue while managing tight margins. This initiative allows brokers of all sizes to access our extensive carrier network, making it easier for them to book and manage loads.
**Editor:** That’s a noteworthy development. How exactly does Broker Access digitize and automate broker operations?
**Brooks McMahon:** Broker Access transforms traditional brokering processes by digitizing every step— from booking and tracking to payment. Our self-service portal and robust API integrations facilitate seamless operations. Brokers can manage pricing, bid interactions, and carrier selections, which ultimately promotes efficiency and transparency across the supply chain.
**Editor:** You mentioned the importance of transparency. Can you elaborate on how this system enhances visibility for brokers and their clients?
**Brooks McMahon:** Certainly. One of the key features of Broker Access is real-time tracking and automated updates. Brokers and their clients can enjoy enhanced visibility throughout every shipment. This transparency helps build trust and ensures everyone is in sync, thereby improving customer relationships in the long run.
**Editor:** In light of the current market volatility, how does Broker Access address security concerns, particularly regarding fraud?
**Brooks McMahon:** That’s a crucial aspect of our program. Broker Access includes proactive fraud mitigation measures and automated carrier monitoring solutions. By utilizing our technology, brokers can minimize risks and boost reliability, which is especially important as they navigate an unpredictable market.
**Editor:** Lastly, what feedback have you received from logistics firms that have adopted Broker Access so far?
**Brooks McMahon:** The feedback has been overwhelmingly positive. For instance, Ken Apple from Mariner Logistics mentioned that Broker Access offers greater flexibility and improved cost-effectiveness. We believe that by empowering brokers with our extensive technological tools, we are not just helping them survive but thrive in this evolving landscape.
**Editor:** Thank you, Brooks, for sharing these insights. It sounds like Broker Access is a significant step towards redefining freight brokering.
**Brooks McMahon:** Thank you for having me. We’re excited to see how Broker Access will support brokers in enhancing their business and service capabilities.