Uber’s logistics boss has said that the entire industry must pull together if it wants to fix the “shipping armageddon” that is crippling global supply chains.
“We’ve reached shipping Armageddon,” Uber logistics chief Lior Ron told CNBC.
Uber said it was using its own technology to help tackle the problem but only a sector-wide solution would work.
“It really requires the entire industry because we are facing just unprecedented times,” Ron added.
“We’re ordering more and more packages that we love to consume to our doorstep, but the supply chain is completely imbalanced…the entire network is different.”
Uber launched its logistics division in 2017, and since then it has operated in the same fashion as its ride-hailing arm, by acting as a middleman connecting independent truck drivers with shippers that have cargo.
The app has over one million active drivers using the app.
The ongoing crisis is continuing to cripple supply chains around the globe, with a recent surge in demand culminating bottlenecks, port traffic jams and delays at some of the world’s biggest ports and logistic sites.
Now, containers are getting jammed up in ports because of both rising demand and a continuing shortage of dockworkers and truckers to unload them and take them to their destination.
Governments are implementing desperate measures to ease congestion, with the White House announcing plans to shift the Port of Los Angeles to a 24-hours-a-day, seven-days-a-week schedule.
Ron was reluctant to agree that giving truckers better wages was the solution to the trucking problem, however he did admit that it would help.
“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,” he added.
“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.”