Amazon.com Begins Work on Developing a Mobile Application Similar to UBER in the Logistics Industry

Amazon.com Begins Work on Developing an UBER-Like Mobile Application in the Logistics Industry

World E-Commerce giant Amazon, with its market volume exceeding 150 Billion USD, seems eager to be one of the actors of the transportation sector management.

The idea of transforming the management of freight traffic into mobile platforms in the logistics sector is remarkable in terms of the UBERization of logistics. A large number of applications enter the market one after another.

A US actor like Coyote started to manage 30 thousand shipments per day, this situation attracted attention by UPS and UPS bought Coyote for 1.8 Billion USD in August 2015; The fact that Unilever, the Logistics Startup CONVOY, which also operates in the same field, has undertaken the management of thousands of trucks of freight traffic that takes place every day in the USA seems to have energized the market.

World Trade turns 20 trillion USD annually. About 7.5 trillion USD of this is in the field of logistics and supply chain management. Even this situation reveals that the time has come for the digitalization of the logistics industry.

This must be the reason why Maersk, the maritime transportation and port management giant with its 100 Billion USD group value and new acquisitions, as well as its 18% dominant position in the world market, recently declared 2017 the year of the “digitalization of logistics”.

Considering that even in Turkey, 900 thousand trucks are loaded every day, this load is transported for an average of 280 km, and the average price per transport is realized at 1,000 TL, we can say that the daily turnover of trade in logistics in Turkey is around 900 million TL.

UBER announced its investment vision in the logistics sector in the past months. Again, companies such as XPO Logistics invest millions of dollars for mobile logistics tracking and management platforms.

In order to adapt to the competition in the digitalizing world, the business and the business structure must be transformed in accordance with the conditions of the day.

Source: WSJ