Information Frictions, Load Matching, and Route Efficiency in the Trucking Industry

14 Pages Posted: 24 Mar 2020

Date Written: February 3, 2020

Abstract

Efficient routing of truck loads is a complex problem that requires processing a large amount of information. I study the impact of a matching technology on the Uber Freight digital brokerage platform that algorithmically bundles loads on route efficiency and empty miles. Comparing driver choices before and after bundling was available, I estimate a decrease in deadhead miles by 22.6 percent. This is equivalent to an increase in truck utilization from 81.6 to 85.8 percent and highlights how technology can overcome information frictions in the trucking industry.

Keywords: Truck Routing

JEL Classification: R4

Suggested Citation

Heilmann, Kilian, Information Frictions, Load Matching, and Route Efficiency in the Trucking Industry (February 3, 2020). Available at SSRN: https://ssrn.com/abstract=3545019 or http://dx.doi.org/10.2139/ssrn.3545019

Kilian Heilmann (Contact Author)

Uber Technologies ( email )

1455 Market St
San Francisco, CA 94103-1331
United States

HOME PAGE: http://https://sites.google.com/view/kilianheilmann

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