Uber launches a freight platform in German rivaling local companies to hold on to Europe’s $500 billion trucking market.
Germany is the second European overseas expansion for Uber as earlier this fall Uber announced its beginning with the Netherlands. Founded in 2017, Uberfreight has generated impressively in the US. The unit has around 30,000 active users, with 12% of truckers in the US.
In the United States Uber connects around 48 states with $US125 million revenue in quarterly. But it won’t be easy in German. Founder Travis Kalanick said that it had met opposition from local companies, taxis, and even the courts.
However, Uber has been in consultation with the German officials to get some back support for its freight platform and hence is all ready to compete with the local firms, including Berlin-based startup sender, which has raised $US70 million.
Just like its ride-hailing app Uber freight will operate as a middle-man in the market that will make money from the price paid by the shipper and the amount it pays on to the trucker. Uber with a vast capital revenue of $US74 billion aims to adapt its model used in the United States. The apps, however, still face challenges regarding environmental issues as it totally depends on diesel and with not overloading the drivers with work as they have to spend long hours on-road driving.
After all challenges, Uber is still hopeful that freight will attract digitally savvy truckers, enabling a massive market in Europe.
