On-demand Seattle based brokerage supplier called Convoy is one of the most thriving players in the North America region for automated spot market solution. At first, the company started offering a hook and drop solution for trailers. The solution was being offered to the small carries and the operator-owner of the trailer. This further helped the Convoy customers to tap into the delivery and pick up the trailer market. During that stage, the market was dominated by carriers with large assets. At present, Convoy’s solution is being offered to all the carriers and shippers nationwide. Convoy’s solution offered is quickly rolled out in the market to grab Uber’s attention. In 2018, Uber launched Power Loop feature for Uber freight.
Convoy also offer a Convoy Go solution which allows grab and go i.e. carriers need to bring along their tractor unit and then pick up the loaded trailer and go for the delivery. Convoy built a tool called Universal Trailer Pool, this tool has helped convoy to successfully implement their grab and go solution.
From the past 5 to 6 years, on-demand automated digital brokerage solutions are available in the market. Companies such as Uber Freight, Loadsmart, Transfix, Convoy and others are catering to the market. However, the conventional process of brokerage is still carried out in the market. The conventional process of brokerage involves a scheduler meeting dispatcher and broker to carry the negotiation till the optimal deal is made. Companies such as truckstop.com and DAT has developed a loadboard solution to digitalize the first step of the process. The small fleet owner and operator employ the DAT’s weekly rate index to negotiate the best deals. But they were not able to automate the process of brokerage. The on-demand automated solution helps to cut down the back and forth process of negotiation and enable them to accept or reject the deal on single click.
Despite the value proposition of instantly filling empty space by offering instant prices and reducing brokerage commissions, the automated on-demand brokerage has not seen rapid penetration. Solution providers understand that one solution does not fit all and Convoy Go is an example of the kind of differentiation technology companies can bring to the industry in an effort to transform it.
Despite the automated solution which works with ease and lowers the commission on brokerage, was not able to realize the penetration rate. Thus solution provider has understood that no one solution fits all and that’s the reason Convoy has implemented its Convoy Go solutions as an effort to transform the industry. Convoy Go provides the differentiation to the solution i.e. it enables the small carriers and owner-operators to provide the same service as shippers i.e. solution in terms of in time delivery and pickup and equipment availability information.
In the US, one-third of truck freight cost is attributed to the amount of time spent waiting for the order or waiting for the load and unload at the dock. This further impact the cost of transportation and earning of drivers and reduction in the capacity for shippers.
Nationwide, Convoy Go is the only solution available which provide the details about the equipment and delivery and pick up time. The company needs to strengthen the geographic cluster of shippers to enable rapid go and hook services for the small carriers and operators. This will allow maximum asset utilization, cut the load time and make the value stream more efficient.