Uber Freight was created after the company acquired self-driving trucking company Otto. The idea is to create a shipping network and generate revenue from the truck dispatching business. Longer term Uber use the data and the network to build out its driverless truck business.
While independent truck drivers typically have to negotiate the fare with the shippers, the price under Uber Freight is predetermined and guaranteed. Once a driver gets a shipment to where it needs to be, the payment begins processing and a driver will be paid within seven days. We’ve asked Uber how the pricing works and here’s what a spokesperson had to say: “Distance is certainly one of the strongest factors that determines our prices, as well as cargo type, location and others. Like Uber ridesharing, we take into account overall marketplace dynamics to surge prices overtime to match supply and demand.”