Uber Technologies has announced it is entering the trailer leasing business.
The business will be called Powerloop and will operate as part of Uber Freight. The company made the announcement on Wednesday via a blog post by Max Pike, Program Manager of Strategic Projects.
“The freight industry is changing and growing. This is particularly true for trucking. According to the American Trucking Associations, revenue from the trucking industry made up nearly 80% of the $900B generated by “all transportation modes” in 2017, and it’s not slowing down. The rise of e-commerce, increased consumer spending, and accelerated manufacturing practices have led to a surge in demand for freight. That, coupled with the impact of the ELD mandate, means shippers are in the middle of the most significant capacity crunch in decades. Truck drivers are more important than ever,” Max said.
Powerloop, which rents trailers to carriers and enables a trailer pool model that any eligible carrier can participate in, no matter their size, is currently available in key regions in Texas and is already being utilised by a handful of Fortune 500 shipper partners, including brewer Anheuser-Busch, and a network of entrepreneurial carriers, some of which have already moved their entire operations to power-only and grown their fleets as a result.
“Over the coming years, Powerloop aims to scale the program and help create a single, interconnected trailer-pool system, where shippers of all sizes can turn drop operations on and off when they need to, and any eligible carrier can move a trailer, anywhere in the country. It’s still early days for the program, but we’re excited by the promise of Powerloop and the far-reaching benefits of making power-only loads more accessible to carriers,” Max said.