Uber Freight heralds enhancements to Powerloop drop and hook offering

Earlier today, San Francisco-based Uber Freight, a subsidiary of the ubiquitous, ride-sharing service Uber, whose proprietary app matches trucking companies with loads to haul, and a non-asset-based third-party logistics services provider, announced that it has added new features to its drop and hook capacity service, which it calls Powerloop, with the offering making further national inroads.

This follows a September 2023 announcement, in which Uber Freight heralded an expansion of the footprint of Uber Freight Powerloop program to meet surging client demand for drop and hook and dedicated capacity solutions. The program expanded its operational scope from localized freight within Texas, California and Georgia, to regional and over the road freight stretching across several new states including Arizona, Utah, New Jersey, New York, Arkansas, Minnesota, Wisconsin, Illinois, Indiana, Ohio, Tennessee, Pennsylvania, Virginia, North Carolina, South Carolina, Florida, and Kentucky.

Company officials explained that drop and hook services provide various benefits for shippers and carriers, providing flexible transportation solutions for the former, and enhanced efficiency and earnings potential for the latter. What’s more, they added that Powerloop has experienced significant growth, as evidenced by more than 10,000 carriers providing service for more than 220,000 loads, coupled with Powerloop seeing a 30% increase in load volume.

“We've transformed Powerloop into the drop-and-hook solution that I envisioned during my time as a shipper,” said Alyssa Correale, Vice President of Operations at Uber Freight, in a statement. “The escalating demand for our program is a testament to its efficacy. With a nationwide carrier base of 95,000 and significant enhancements, we're reaffirming our commitment to innovation and excellence in the transportation industry, positioning ourselves to meet the burgeoning demand and drive continued acceleration.”

In an interview with LM, Correale said the main benefits of this announcement for shippers are centered around increased flexibility, visibility, and efficiency in their transportation operations.

“With the nationwide expansion of Powerloop and the introduction of dedicated fleets, shippers gain access to a new source of capacity powered by the industry’s largest network of carriers and operated by the most sophisticated operating system,” she said. “These developments provide shippers with new and creative ways to drive value in their supply chain. Additionally, the integration of smart trailers with advanced sensors provides shippers with real-time visibility into the status of their shipments, ensuring greater transparency and control over their supply chain. This enhanced visibility is not only for shipper use, though, as this data is used intelligently in the Uber Freight operating system to continuously optimize fleet operations resulting in more reliable service to shippers and an overall more sustainable capacity offering.”

When asked what drove demand for the Powerloop service, she said it is being driven by several key factors, including a growing need within the industry for more flexible and efficient transportation solutions.

“Shippers are constantly seeking ways to optimize their supply chain operations and reduce costs, and Powerloop offers them the flexibility to do just that,” said Correale. “By decoupling the power unit from the trailer, Powerloop enables faster drop and hook operations, minimizing dwell times and keeping freight moving smoothly. Secondly, the nationwide expansion of Powerloop and the introduction of this program’s dedicated fleet capacity have significantly increased its appeal to shippers across the country. This program has two key differentiators than traditional dedicated capacity: 1-ability to flex capacity more easily and 2-ability to deliver on strong revenue share projections.”

And she added that the integration of smart trailers with advanced sensors provides shippers with real-time visibility into the status of their shipments, enhancing transparency and control over their supply chain.

“This increased visibility allows shippers to make more informed decisions and proactively address any issues that may arise during transit, leading to a smoother and more reliable shipping experience,” noted Correale. “Lastly, the introduction of AI-powered bundles has further boosted demand for Powerloop by optimizing network planning, reducing empty miles, and maximizing efficiency and cost-effectiveness for shippers. By bundling loads in real-time, shippers can minimize downtime and streamline their logistics operations, ultimately driving down costs and improving overall profitability.”

Regarding the next steps for Powerloop, Correale explained that the journey of investment in Powerloop is just beginning, noting that the industry's trailer visibility and optimization space is antiquated and lacks critical components necessary for fully utilizing these assets.

“Uber Freight is poised to lead in asset utilization and efficiency by partnering with our customers to build a cohesive drop and hook network,” she said. “We prioritize the needs of our carriers by offering multiple avenues to earn consistent, hassle-free revenue and are committed to being the first to properly support trailer utilization through our technology investments. Powerloop will emerge as the go-to choice for shippers looking to elevate their drop and hook capacity solution.”