Uber versus the courier industry - no contest?

The “Uber” concept has
taken a firm grip on the taxi
industry in the countries
in its global operation, and
intends spreading out into
the small parcels delivery
industry.
But questions are being
asked as to whether they are
legal operators.
There’s no question that
the Uber app is legal. It’s
a software company with
a mobile phone app that
connects people with a pool
of private drivers. But more
questions need to be asked
about how
safe and
reliable the
cars are –
and if the
operators
meet the
regulatory
standards set
for a door-todoor
service.
And that in
SA includes
“commercial” insurance for
each vehicle (not standard
“personal” insurance) and
drivers holding a public
service vehicle (PSV) licence.
There is, unfortunately, no
national study of the local
Uber industry to confirm
whether they have or not.
The question is what
happens if Uber moves into
the small parcels business
as well?
If you listen to Barloworld
Logistics marketing
executive Kate Stubbs, she
will tell you:
“A few years
ago Uber was
an almost
unknown
brand. They
are now
looking at
parcels and
are viewed
as one of
the largest
logistics
companies in the world.”
Uber executives appear on
their way to expanding the
service into a digital mesh, a
logistical network that helps
city dwellers get what they
want where they want it.
The first move took place in
New York when word arrived
of UberRush, a bike courier
system - the first significant
step toward seeing if Uber
could build out a digital
mesh to help provide instant
gratification of whatever city
residents wanted.
But that word “city” should
be noted, according to Garry
Marshall, CEO of the SA
Express Parcel Association
(Saepa).
The UberRush concept is
intra-city, not inter-city, he
said.
Unlike traditional courier
companies, Uber doesn’t
even own a f leet of licensed
cars, motorbikes or bikes,
never mind a national, or
even national operational
infrastructure. It’s a software
company with a mobile
phone app that connects
people with a pool of private
drivers.
“UberRush is an inner city
service where you can app a
driver to carry not you, but
a parcel, to its destination,”
Marshall added. “In our
market sector, they’re called
messenger services –
moving things from
one side of the
city to the other
where you
don’t need
other parties.”
But for
inter-city, or
international,
deliveries,
Uber doesn’t
score. “The moment
a driver goes out of
town, all the courier industry
regulations apply,” said
Marshall. That includes the
necessary documentation, he
added, like the waybill with
its clearly defined contents,
and commercial insurance.
Add to that a national or
international network
– with in-house or thirdparty
connections in the
destination area to handle
delivery.
Marshall asked: “With
the Uber concept, what
happens if a parcel
is lost, stolen,
damaged or
delivered
late? In the
courier
industry,
these are
all covered
by our
terms and
conditions of
business.
“All the regulations,
insurance, guarantees and
infrastructure network are
key attributes of the courier
industry. But what about
Uber?
“They profess that they
don’t go that way. They only
provide an app. So I can’t see
Uber as a direct opposition
to inter-city services.”
INSERT & CAPTION
In our market sector,
they’re called
messenger services. “– Garry Marshall