Lior Ron making sure logistics not running on empty
Lior Ron is an Israeli-born businessman who served in the Israel defence forces from 1997 to 2004.
In his commercial life, Ron rose to become Product Lead for Google Maps and then Product Lead for Motorola Mobility, which was acquired by Google in 2011.
In 2016 he left Google to found Otto, a company that makes self-driving kits to retrofit big-rig trucks.
Quoted in Wired, Ron said he left Google because he “felt an obligation to bring this technology to society sooner rather than later”. In an industry where there’s a 30% chance that a truck next to you on the road is empty, it has always been Ron’s mission to change this as soon as possible.
Otto launched in May, 2016 and was acquired by Uber in late July the same year. The Uber partnership allowed Ron and Otto the opportunity to develop a freight marketplace for truck drivers.
The Uber Freight app is designed for vetted and approved drivers who can browse for nearby available loads, see destination info, distance required and payment upfront and then tap to book.
Uber Freight serves shippers of all sizes, from Fortune 500 companies to small independent businesses, and it helps marshalls the estimated 1.7 million truck drivers across North America who are on it.
The platform also opens up a new revenue stream for truck companies, which now have another way to book and process loads.
In an interview as part of McKinsey’s Logistics Disruptors series, Ron says that Uber Freight connects shippers to carriers with capacity by “standing on the shoulders of a giant”.
At a time when the trucking industry is battling rising fuel prices, worsening inefficiency, and difficulties recruiting drivers, Ron says his mission is to “simplify logistics to help communities thrive”
He adds that the aim of Uber Freight is to “simplify the movement of goods and streamline the process by digitising all of the supply chain infrastructure”.
It is this that minimises empty miles and makes the trucking profession friendlier for carriers.
“By releasing this additional capacity, costs should go down and shippers can also streamline their logistics and supply chains,” says Ron.
He adds that, with the greater utilisation of trucks, carriers can also increase their earning power.
“Essentially, we’re connecting supply and demand in a digital, scalable way,” he tells McKinsey.
Asked how the relationships that underpin logistics can possibly be digitised, Ron says Uber Freight helps businesses embrace relationships and augment them with technology.
“Our fundamental belief is that technology is the best way to support and build trust,” he says, adding: “When you ride with Uber, you trust that your car will be there within the displayed time. There’s tons of technology behind the scenes that makes this possible. The same is true for Uber Freight.”
Ron continues: “We have the largest digitally enabled carrier network in the market. Our technology enables companies to recover from cancellations much faster than any manual model, just like how your Uber app automatically assigns you another driver if one cancels.”
Ron points out that in trucking around 15% of daily shipments are cancelled because of weather, traffic, waiting time in facilities, or other reasons.
“We help businesses recover from these cancellations almost 90% of the time,” he explains. “A new carrier is automatically assigned and the disruption is smoothened. That’s unheard of in logistics, and it’s how we build trust.
Tellingly, he adds: “Quite simply, we’re Uber for trucks”.
