Uber steps into self-driving freight transport with startup Otto

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Editorial
04 October 2016
2 min

Uber aims to enter the freight transport market with the purchase of
startup Otto to enter the freight transport market. Otto, developer of potentially
self-driving trucks, has already announced that it also wants to run transports
start performing transports. In doing so, Uber will operate as a broker for transport services.

From 2017, Otto plans to start
transport for other companies, offered through Uber's service. There is
much to be gained, as according to Otto it now usually takes far too long
to find suitable transport for a cargo. Uber hopes to use
the service to shake up the transport sector, which has an annual turnover of around $700 billion. In doing so, it is competing with companies such as XPO Logistics and C.H. Robinson.
Critics say Uber will not have an easy time entering the market.
"The model that Uber has deployed to transform the taxi industry cannot
not translate easily to the freight market," said transport analyst
Jack Atkins to VentureBeat. "Companies are cautious about transporting their loads.
It's not as simple as taxi rides, where a consumer has to be taken from point A
to point B."

Otto has already announced that
it will soon expand its fleet of potentially self-driving trucks
from six to 15 trucks. It also plans to implement its technology in competitors' trucks. Otto's self-driving technology is currently still very much
in development. By now, the trucks would already be capable of autonomous
driving. That does require the presence of a driver. Manoeuvring on public
road, however, remains a challenge, Otto said. The trucks are now driving around with loads
around, to investigate how they react to weight.

Image: Otto