Uber’s new service is a game changer for the freight forwarders
Uber is moving to make the traditional business model obsolete.
The ride-hailing giant is set to launch its own logistics platform to rival rivals, which could ultimately lead to a $6 billion market for logistics firms.
Read moreUber is making a move into logistics as it expands into more segments of the global freight market.
The company is set for a new partnership with logistics giant Agrexco, which provides logistics services to the transportation sector.
Uber has been working with Agrexcon since its acquisition of the logistics company in January, according to a company representative.
This deal will also be used to expand Uber’s own logistics capabilities, according a Agrexcom representative.
Agrexco’s business is currently primarily focused on transporting freight through its network of terminals, which will soon include a new option to transport goods by drone.
The drone service will be used for freight forwarding, a new type of business that involves sending packages to specific locations.
Agrexcos cargo forwarding program has been in development for the past two years, according the Agrexcompany representative.
The Agrexbusiness, which has contracts with the largest U.S. freight carriers, will use drone services to move the goods between the terminals and their warehouses, the company representative told Engadg.
Agresco is already using drone freight forwarding for delivery of packages to customers in the United States, as well as international shipments, according its representative.
For this new partnership, Agrexcaus is also working with Uber to improve its existing delivery services.
Uber has been testing drone delivery services with UPS and FedEx, as part of a pilot program.
Agresco’s drone delivery program is the latest example of Uber taking the delivery market by storm.
In the last few months, Uber has added delivery services to its app, and has been using drones to deliver packages.
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