Story at a glance

  • Uber Freight chief Lior Ron said on Thursday there is not a singular answer to solve the nation’s shipping crisis.
  • “It really requires the entire industry because we are facing just unprecedented times. We’re literally living in a shipping Armageddon,” Ron said.
  • Uber Freight, like the company’s traditional ride sharing app, serves as a connection between available truckers and companies who need items shipped.

Uber Freight chief Lior Ron said on Thursday there is not a singular answer to solve the nation’s shipping crisis, arguing instead that a whole industry approach will be necessary. 

“It really requires the entire industry because we are facing just unprecedented times. We’re literally living in a shipping Armageddon,” Ron, the head of Uber Technologies’ logistics division, told CNBC’s Jim Cramer on Thursday

Uber Freight, like the company’s traditional ride sharing app, serves as a connection between available truckers and companies who need items shipped. But Ron told the outlet the industry needs more than Uber Freight’s million-plus drivers to resolve the logjam. 

“We can definitely make a dent with technology — and we are — but it requires more,” Ron said. “Some of it also is about wages,” adding that family matters are also a factor. 

"It's harder for them to be on the road and there is a better alternative in driving closer to home and doing last-mile delivery. We ask them to do more and more, and maybe they don't want to even have to go on the road because they have to be stuck in facilities or have health concerns," he said.

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Ron’s comments follow a plan by the Biden administration to relieve congestion at the nation’s shipping ports by working with companies to commit to operating facilities 24 hours per day. The White House announced Wednesday that Walmart, FedEx and UPS will work around the clock to address the supply chain bottlenecks. 

“The supply chain is essentially in the hands of the private sector, so we need the private sector to step up to help solve these problems. Three of the largest goods carriers in the country, Walmart, FedEx and UPS, will make commitments towards moving to 24/7, working during off peak hours,” a senior administration official previously told The Hill


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Published on Oct 15, 2021