The commercial trucking industry is buzzing as Amazon readies an Uber-like app for deliveries. Expected this summer, the app is unwelcome news to "middle mile" brokers that it will disintermediate.
But that's just the latest in a line of Silicon Valley innovations creating new competitive challenges in commercial trucking. Add in Amazon's booming same-day delivery service, its secretive moves into Big Logistics-plus steady advances for Google's self-driving vehicle-and the trend is undeniable: Silicon Valley is "disrupting" the road cargo business just as it has retailing, taxicabs and TV.
Competing against a tech giant is a "fight fire with fire" situation. That means employing new truck tech to boost fuel economy, improve routing, and feed valuable data back to base.
There are generally two ways to adopt technology:
- buying new equipment and diving headlong into the unknown
- or a far less costly way: renting.
Renting allows drivers and managers to work with valuable new tech at a fraction of the up-front investment. Here's a look at three technologies that you can road-test via renting.
1) Online Telematics: Always knowing where your vehicles are and how they're performing is a major advantage. A full-featured GPS telematics solution, such as Ryder's RydeSmart, makes it possible. This easy-to-use interface monitors each of your vehicles directly from the web and eliminates the hassle of reporting Interstate Fuel Tax (IFT). RydeSmart allows you to monitor vehicle operators to improve MPG, reduce idle times, and boost efficiency.
GPS telematics can also:- Access on-board event recording as well as on-demand vehicle route history replay
- Develop customized landmarks and use geo-fencing
- Compile a wide variety of vehicle and driver performance reports
- Keep you compliant with DOT's latest HOS rules and regulations2) High-Tech Trailers: Semi-trailers haven't modified nearly as much as engines and other systems in recent years, but that's changing. Some models available on the rental market now have new aerodynamic designs (e.g., side-wings) that reduce drag and increase fuel economy. Trailers are getting telematics of their own, which allows dispatchers to monitor everything from temperature to airflow. Also, cameras are being added for better visibility in reverse, as well as new "low-tech" fixes like air-curtains and other smart innovations.
- The Takeaway: When renting to test-drive the latest truck tech, don't forget the trailer. Exciting trailer tech is bringing new capabilities to the "brick on wheels" that you're hauling.
- The Takeaway: Tech firms and original equipment manufacturers (OEMs) are flooding the market with proprietary truck tech. Renting lets you try before you buy, which can lower costs and optimize performance. That edge will be decisive in the next few years, as Amazon and others encroach on the logistics business.
3) Introducing the Electric Semi: In December 2016, Nikola Motor Company introduced its development plans for Nikola One, TM a revolutionary semi that will come with a fully electric drivetrain powered by high-density lithium batteries and a hydrogen fuel cell. While this new truck is still years away, here's what you have to look forward to with Nikola One TM: a range of up to 1,200 miles while delivering over 1,000 horsepower and 2,000 ft. lbs. of torque-nearly double that of any tractor on the road. This zero-emissions Class 8 truck is being viewed as a potential game-changer that may alter fleet economics for the better. Nikola Motors has partnered with Ryder as their exclusive nationwide distribution and maintenance provider. Now that electric Class 8 hardware has a foothold, some experts see positive impacts just down the road.
"This relationship is key to expanding our advanced vehicle technology portfolio of innovative solutions," said Dennis Cooke, Ryder's President of Global Fleet Management Solutions.
The Takeaway: Zero-emissions electric trucks are arriving soon in the U.S. heavy-duty market, and there are reportedly over 7,000 preorders for the new Nikola One.TM Ultimately, rentals will allow drivers and fleets to see how they can benefit from this new breakthrough.
