Lior Ron, head of privately-held Uber Freight, told Jim Cramer on a recent episode of “Mad Money” that there is no single solution to the current problems getting freight to market.
Uber holds a majority stake in Uber Freight.
Ron told Cramer that the trucking industry has lost 6% of its workforce during the pandemic, causing the supply chain to become completely unbalanced. He said it’s an industry-wide problem, but one that can be solved with technology that makes drivers more efficient.
On Real Money, Mark Sebastian recently looked at Uber. “While the S&P 500 was dumping the last few weeks, this stock was strong, Sebastian wrote.
It’s harder to get truckers on the road, Ron explained to Cramer. New regulations force them to drive less while increased competition for last-mile services has made long-haul jobs less appealing. Then there are the Covid health concerns.
Drivers get paid to drive, Ron added, and the more transportation gets disrupted, the more drivers wait around at warehouses for loads that aren’t ready or for shipping containers that have yet to be unloaded.
Uber Freight has one million drivers on its platform and uses its app to make every driver as efficient as possible. Instead of waiting, Uber tries to find shipments that are ready now and get them on the road as quickly as possible.
Supply chain problems are happening around the world. As lockdowns lifted, demand shot up. This came on top of breaks in the supply chain during the heart of the pandemic that have yet to be entirely repaired.
Worker shortages, price fluctuations and a lack of key components and raw materials have continued to exacerbate these problems for manufacturers and the transportation industry.