Supply Chain Optimization

Broker Wars Heating Up

 
“Uber is currently prioritizing the build-out of supply/demand density and is therefore sharing 99% of gross revenue with its carriers (vs. the industry standard of 80-85%),” Morgan Stanley.  At the same time, JB Hunt’s digital brokerage is committing 500 drop trailers to make it more efficient for carriers using the platform.  While Uber and Convoy have put trailers in place, they are mostly leased – whereas JB Hunt is using owned trailers.
 
My prediction is – that broker volume will be more than 50% of all freight in 10 years – with better margins for carriers and faster payment.