Risky Business

Roadie is something to keep your eye on

By Shelly Benisch, T.R.S., C.I.C.
Posted Jan 30th 2015 3:27AM

CIS_Logo_63.jpg  I would dismiss this as something unlikely to affect our Expedite World, but with the explosive growth of Uber..."Roadie" is something to watch.  Roadie has reportedly been launched with the support of UPS Strategic Enterprise Fund as well as several other noted investors.

For anyone not familiar with Uber, it's a Smartphone App where anyone who needs a ride somewhere has the ability to simply text Uber for a pick up by one of their independent drivers. 

The traditional taxi market with higher overhead costs of regulated drivers and regulated vehicles are screaming foul play because it's driving overall fares lower,  while their costs remain the same.  They see it as an unfair playing field.

But since UberX launched in 2012, allowing service by just about anyone with a driver's license and a car, it quickly grew into a multi Billion dollar company across the world.

Other companies are now emulating it's successful business model, a trend that has been coined "Uberification".

"Roadie" is apparently one of these companies. 

The company launched the app in February 2014, ostensibly so that people could ship personal items with folks who may already be "going in that direction".  Roadie insures all items up to $500, which is of course, far less than what an Expediter usually hauls in their freight.

The long term concern I have is the support by UPS Strategic Enterprise Fund, which along with investments in "Roadie" has also reportedly invested in "Shutl", a startup that connects retailers with same-day couriers. 

As Uber has grown, the reported profits for the drivers have dropped significantly.  The same is likely to occur for Roadie if more and more Unprofessional drivers get into the market.

...Hey, this could amount to no affect whatsoever to our Expediting community.  I just read a lot of "stuff" you all don't have time to so I thought I would be remiss in not forwarding everyone a "heads up".

Look, it's more important that ever to strive for the Expediting niche to be the "Best of the Best" with Professional drivers fully protected by correct insurance in order to circle the wagons to maintain GOOD incomes for everyone.

Shelly