Technology

Retailers Respond to Amazon’s Next-Day Shipping

 

Commerce giant Amazon is no stranger to disrupting industries. From its early years of disrupting the book retail industry by making new and used books more accessible than ever, to changing the way people grocery shop with its purchase of Whole Foods, Amazon has challenged other businesses to keep up with the so-called Amazon Effect.

Now, Amazon is aiming to disrupt the shipping industry by changing their two-day shipping program into a ubiquitous, one-day shipping model across the U.S. It is now up to other businesses to adjust under the added pressure to keep up with Amazon and the heightened expectations of consumers. This change also has the potential to disrupt the trucking industry as faster turnaround will be in high demand.

Amazon Announces Next Day Shipping  

In April of 2019, Amazon made the announcement that one-day shipping would soon replace two-day shipping as the norm from Amazon Prime customers across the country. Previously, one-day shipping was reserved for specific areas, primarily those in large, metropolitan cities. Amazon also stated that they are expecting to invest $800 million during the second quarter this year to create the delivery infrastructures and warehouses necessary to make one-day shipping possible everywhere.

Amazon already has 100 million Prime members across the U.S. who pay $119 per year to receive free shipping and one-to-two-day shipping on goods including clothes, books, home supplies, dry goods, and even groceries in select areas. That means that Prime is already in 50 percent of U.S. households. With one-day shipping expanding to all areas of the country, more people than ever will be able to enjoy their orders arriving on their doorsteps in less than 24 hours. Additionally, Amazon can expect their member pool to grow exponentially. While this sounds like great news for Amazon and its members, these changes are leaving retailers needing big changes to retain their customer base.

Retailers Respond to Amazon Next-Day Shipping

Soon after Amazon’s next-day shipping announcement, Walmart alluded to their own one-day shipping plan in a short tweet:

 “One-day free shipping…without a membership fee. Now THAT would be groundbreaking. Stay tuned.”

This tweet not only stated that Walmart had plans to mimic Amazon’s one-day shipping model, but they have also hinted at their plans to offer this service without the membership fee Amazon requires.

In May of 2019, Walmart came through on their promise and announced their plans to release one-day shipping across the country. They stated that they will begin next-day shipping in Phoenix, Las Vegas, and Southern California, then expand the service to 75 percent of the U.S. by the end of 2019. Since Amazon has not released a set date for their next-day shipping expansion, there is a chance Walmart may beat Amazon to certain areas of the country. This could cause some consumers to be less interested in an Amazon Prime membership, since there is already a similar service for free.

Walmart is not the only retailer to quickly respond to Amazon’s new supply chain model. Home Depot has also announced its plan to offer next-day delivery for up to 50 percent of the U.S. population by the middle of 2019. Its CEO also stated the company is already offering this service to 36 percent of the population.

Over the years, Target has taken steps to keep up with Amazon’s ever-changing shipping services. In March of 2018, Target began offering free two-day shipping to all of its credit card holders. It also offers this service to other customers on orders over $35 dollars. Target also acquired the shipping company Shipt to allow customers to enjoy same-day delivery in larger cities. Target also offers a variety of services to make shopping easier for customers, including its Drive Up or Pick Up services provided at 8,500 brick-and-mortar stores.  To date, Target has not announced any new tactics to compete with Amazon, but simply reminded consumers in a statement about the services they already offer.

How Will Same-Day Shipping Affect the Trucking Industry?

Just like big box retailers must rethink their business models to keep pace with Amazon, the trucking industry must innovate to meet the demand of nationwide same-day shipping. For example, as retail analysts have opened, it may be in the interests of big box retailers like Home Depot and Walmart to combine one-day shipping volumes to provide faster logistics at lower cost. The trucking industry may need to develop new programs and services to help retailers maximize their logistics speed and timing to compete with Amazon’s logistics capabilities. Truckers will need to act as trusted advisors to recommend to shippers the program or service that best meets their needs.

The new, higher demand for fast shipping will cause some growing pains for multiple industries. However, it equates to high job security for truckers and potentially more demand for qualified drivers, freight owners, and logistics managers. That means now is a great time to invest in your business or truck. And for all your commercial financing needs, trust the experts at Mission Financial Services. Apply today and get approved for a semi-truck loan in no time.

How the IoT Increases Visibility of Assets Throughout the Supply Chain

Trucking: A Supply Chain Workhorse

 

What image comes to mind when almost anyone thinks about moving palettes of product from a manufacturer to a distribution center or to a store for purchase? Trucks, and rightly so. The American Trucking Association reported that trucks moved 70.2 percent of all domestic freight tonnage in the United States. It took 3.6 million heavy-duty Class 8 trucks moving 10.5 billion tons of freight and burning 39 billion tons of diesel fuel to accomplish that feat.

Clearly, the trucking industry is a huge part of the supply chain. That’s quite a load of trucks, drivers, and freight to manage. How in the world can anyone or any company manage all of their drivers and trucks, not to mention all the freight they move? Can a company know all their trucks’ locations at any point on their routes in real time? Is a truck’s tire or engine about to fail while on its route, possibly impacting delivery time? Could anyone have foreseen that truck’s issues and taken it out of service for repair? If a company has multiple drivers delivering to a company, how can it know they are all taking the most economical and timely route or perhaps a route that can damage trailer contents? Is the environment in each trailer suitable for the type of freight it’s carrying? Are your drivers driving as safely as they could or should?

Attorneys say you should never ask a question to which you don’t know the answer; all these questions have answers that may surprise you. Briefly, the answer to all these questions is yes. Let’s explore a little.

What is The Internet of Things?

Almost everyone has an idea of what the Internet is. It began as a network of hardware and software technologies that allowed computers to connect to it and talk to each other so people in government, scientific, and academic circles could find information and share it with each other.

Now all kinds of devices connect and communicate through the Internet – smart TVs, smartphones, vending machines, refrigerators, and more recently, small devices called sensors. Hence the name The Internet of Things, or IoT for short. The Internet of Everything Under the Sun doesn’t quite have the same ring and the acronym is even worse.

Sensors communicate among themselves, meaning they send information to and from one another and with an asset tracking system or fleet management system (depending upon the type of asset you’re managing), all in real time, to help businesses solve many types of difficult business problems and save significant money that otherwise would have been lost.

Profound Benefits of IoT to the Supply Chain

The IoT will impact the supply chain in ways never seen before, creating sweeping revenue opportunities and operational efficiencies heretofore unseen. Asset tracking, vendor relations, forecasting and inventory, connected fleets, and maintenance are all areas within supply chain management that will see unprecedented boons. Here are some examples of the use of and the benefits from the IoT:

1. Asset Tracking and Supply Chain Visibility

A case study by Sierra Wireless discusses how one of their customers, Tive, helped a washing machine manufacturer identify and resolve washing machine damage that occurred during shipping by employing IoT asset tracking to improve supply chain visibility.

In another example, real time asset tracking saved $1.5 million of medication from ruin because trackers placed inside the shipping container alerted the pharmaceutical company that the container temperature was too low. The pharmaceutical company immediately was able to reach someone at the port where the container was and fix the temperature issue.

2. Proactive and Preventive Maintenance

Who hasn’t seen a fleet truck stopped on a highway shoulder with its cab up and the driver trying to determine what needs repair? In the meantime, the scheduled delivery time looks less likely by the minute.

That situation never would have occurred had the fleet owner installed sensors that talked to a fleet management system. The sensors would have alerted the fleet management system about the problem before the truck was even loaded with its freight. The system would have taken the truck out of service and scheduled it for repair for whatever component the sensor indicated was about to malfunction or was malfunctioning. Additionally, the fleet management system would only schedule a technician certified to work on that make and model of truck; problem solved even before it began.

Think of the headaches the IoT averted in that hypothetical scenario:

  • A truck destined to break down was not dispatched.
  • Towing fees were avoided.
  • The driver was able to do what he did best – be productive driving and not be sidelined on a shoulder somewhere.
  • Foreknowledge about a defective truck avoided a late delivery, keeping original delivery time commitments intact.
  • The truck technician could repair the truck faster because the truck sensor identified the problem, saving diagnosis time, and scheduled the right person to do the work.

3. Platooning

Platooning, which groups trucks on a journey, employs artificial intelligence and other IoT technologies to allow legal, digital tailgating among a fleet of trucks. It can improve truck safety using technology already available on trucks – lane-keep assist, adaptive cruise control, and air brakes. It also promises to reduce fuel consumption from 5-20 percent by meticulously and automatically managing the distances among fleets of trucks through wireless communication among sensors, allowing trucks to take advantage of an aerodynamic effect, known as drafting.

Platooning also improves road capacity and road safety. Because of the near instantaneous communication of these state-of-the-art driving support systems, trucks simultaneously can accelerate or brake, which supports better traffic flow. They also can follow each other more closely because platooned trucks react orders of magnitude faster than human drivers. They don’t require the same amount of distance between them to compensate for the slower reaction time.

Looking Forward and Forward-Looking

These are incredibly exciting times in the transportation industry with many positive changes in the near future. With change comes opportunity and all of us at Mission Financial Services look forward to helping you take advantage of those opportunities. Contact us today to get started with your commercial vehicle loan.

How New Platooning will Make Trucking Safer than Ever

 

Excitement is building in the commercial trucking industry as people wait for the leader in platooning, Peloton, to announce the release date for its two-truck platooning system, PlatoonPro. In hopes of temporarily satisfying truck enthusiasts, the company released a list of the safety measures they have put in place to make sure their platooning technology will increase safety for truckers and other cars on the road. Here are some of the ways Peloton is ensuring their tech will make driving safer once it is released.

What is Platooning?

Platooning is a new way we are seeing artificial intelligence working in the trucking industry. This technology is a legal, digital way for a fleet of trucks to communicate with one another using a wireless internet connection. When the front truck brakes, the truck behind can automatically brake or slow down to avoid a collision. Reaction time is improved, allowing trucks to follow more closely behind each other compared to manual driving or cruise control.

Platooning is spreading rapidly thanks to the technology being adapted by numerous truck manufacturers. Companies now working to equip their trucks with platooning technology include Tesla, Volvo, Daimler Truck North America, and many more.  

Expanding Upon Proven Technology

In their article, Peloton states that its goal is to make platooning safer for truckers than ever before. That means the moment they hit the button to activate the platooning feature of their truck, their risk of collision or accident should decrease dramatically.

From safety systems to air disc brakes, Peloton’s goal is to not disable any preexisting technology when platooning is enabled. Instead, they are building upon these proven safety systems to make platooning even safer. They also plan to hold their trucks to a high standard with strict maintenance and inspection requirements that will ensure all trucks are in working order before hitting the platoon button.

How New Platooning is Increasing Safety

Apart from proven technology already found in commercial vehicles, the new platooning system will also add features not commonly seen behind the wheel of a semi. Features of Peloton’s new system will include:

  • Connected Braking

One of the biggest aspects will be the new vehicle-to-vehicle direct communication. This technology will be possible due to industry-standard digital short-range communications (DSRC.) This will allow two trucks to accelerate, slow down, and brake together. With this technology, truckers will be able to follow closer than ever before without having to worry about reaction delay. This will decrease fuel consumption, allow for more space on the highway, and make driving easier and safer.

  • Platoon ProXimity Dissolve

Platoon ProXimity Dissolve will use camera sensor data and radars to gage traffic conditions in front of the leading truck during a platoon. In case traffic becomes too dense, or if a car cuts in front of the lead truck, the following truck automatically slows down to create more space. This allows all drivers to avoid any situations that may require hard and sudden braking during a platoon.

  • Platoon Dissolve

Platoon Dissolve allows the following driver to manually dissolve the platoon. With the follow-truck system, the driver can slowly increase the gap between the two trucks until there is enough space to safely start controlling the brake and accelerator pedals.

  • Display Awareness Video and Info Display

To help the following trucker have a better understanding of what is going on ahead, PlatoonPro features an Info Display in the dash. This display will provide a live video feed from a forward-facing camera in the lead truck, so following drivers will be able to see changing road conditions, upcoming traffic, ramps or bridges, and any other objects up ahead.

  • Voice Communications

To help promote efficient communication and teamwork between drivers, the new platooning system is equipped with a hands-free driver-to-driver radio that can be activated with a foot pedal. This will help with synchronizing lane changes, upcoming road changes and when to dissolve a platoon.

  • Cybersecurity

Because platooning systems could potentially be hacked or tampered with from outside sources, it is important that these systems have top-notch cybersecurity to keep truckers and surrounding drivers safe. This system has been highly tested to prevent hacking and will immediately dissolve if a system becomes jammed.

Future of Platooning

Platooning is still in its early phases and requires more research before all 50 states will allow it. Only half of the U.S. currently authorizes the technology, but companies like Peloton are embracing industry standard testing. Substantial in-lab and track testing must be done first before moving on to on-road testing in order to maximize safety standards. As more and more companies continue to do this, then more states will continue to change their laws.

Fully Electric Semi-Trucks: The Future of Trucking

The trucking industry is vital for small towns and big cities all across the country. However, the environmental impact of so many big rigs on the road can deplete the earth’s resources over time. These same resources, like expensive diesel fuel, also cost fleet owners thousands of dollars every year. And with many countries setting goals to ban gas and diesel-powered vehicles in the near future, electric solutions must be made available to the long-haul trucking industry. This has created a race between trucking startups and well-known manufacturers to create the best electric semi-truck before the competition.

How Trucking Impacts the Environment

When it comes to environmentalism, semi-trucks often have a bad reputation. The stereotype of gas-guzzling trucks that produce endless dark smoke is well known. And while there may have been some truth to their reputation in the past, it is becoming less and less true.

The Environmental Defense Fund states that freight movement accounts for 16 percent of all corporate greenhouse gas emissions. This number, which also includes air and water-based transport, would have looked much different a few decades ago. Because of innovations already available, trucks are producing far less emissions than ever before. In fact, it would take 70 of today’s trucks to produce the amount of one truck from 2002.

Recent innovations have also led to trucks being more aerodynamic, which allows truckers to save thousands in gas every year. Simple tweaks to bumpers, side mirrors, tire technology, and truck skirts have led to less fuel consumption and a longer lifespan for trucks.

Even though trucks are running more efficiently than ever, there is another reason to look forward to electric trucks coming onto the market: Never worrying about fuel costs again. Diesel fuel, which was averaging at $3.50 per gallon in 2016, led to huge bills for fleet owners. A trucker traveling 120,000 miles in a year would result in a $50,000 to $60,000 spend in diesel fuel per year. That means two years of gas would cost the same as a new sleeper tractor trailer. Of course, diesel prices are less than they were in 2016, but the large investment in gas is ever-present in the trucking industry. However, with electric trucks, stopping to fill up on diesel would shift to plugging the trucks in for a quick charge, which has the potential to cut fueling costs in half.

These innovations in electric trucks are coming faster and faster to meet the needs of countries that have set goals to eliminate gas and diesel vehicles. For instance, the UK aims to ban all gas and diesels cars and trucks by 2040. That gives them only 21 years to create a power grid that can sustain the electric vehicles, as well as find solutions for the trucking and travel industries.  

Here are a few trucking companies paving the way to electric semi-trucks.

Nikola Motor Company

Nikola Motor Co., an American trucking startup founded in 2014, has been working on fully electric-hydrogen powered semi-trucks. To date, they have created prototypes for three trucks, each designed for a different purpose and to meet the needs of specific regions. So far, Nikola has produced a sleeper available in North and South America, a day truck for the Americas, and a day truck specifically for Europe, Asia, and Australia. Nikola states that their trucks will sport 1,000 horsepower engines with a 500-1,000-mile range per charge. Additionally, drivers should expect a charging session to last only 20 minutes.

Nikola currently has $13 billion in pre-order reservations for its truck. And while an official release date has not been announced, the company is planning to feature demos of their trucks at the World Nikola event in Phoenix in April 2019.

Tesla, Inc

Elon Musk’s company, Tesla, has been hard at work perfecting their electric semi-truck, the Tesla Semi, which was first revealed in November of 2017. According to Tesla, their semi, which comes with four motors, will be able to go from 0 to 60 mph in 5 seconds. They are said to have a 500-mile range on a single charge. And because most semi-truck hauls are under 250 miles, that means drivers can make an entire round trip without stopping to charge.

The Tesla Semi is scheduled to be released later in 2019, but it has already been pre-ordered by the hundreds by big-named brands. Some companies ready to embrace the new Tesla trucks include Albertsons, the parent company of Safeway, Shaw’s, Vons, Pavilion, as well as Walmart, Pepsi, FedEx, and dozens more.

The Rising Competition in Manufacturing

Nikola and Tesla are not the only two companies working to bring electric semi-trucks to highways everywhere. BMW and Daimler have both been working on their electric cars and semi-trucks. In fact, BMW is already using their electric semi for short distances at their headquarters in Germany.

Ford recently released a concept for its own electric semi-truck that they plan to call the F-Vision. Volvo has also released a concept for a completely cabless, autonomous electric semi, called Vera. As for these two concepts, no release date has been set.

The future looks bright for transportation. With so much innovation hitting the market, the trucking industry is evolving to be safer and more environmentally friendly every day.

What Truckers Need to Know About Autonomous Vehicles

 

This century’s boom in technology has revolutionized seemingly all aspects of everyday life. It has gone well beyond our computers and cell phones. Now, our vacuum cleaners, thermostats, and even our dog’s collars can be connected to the internet to make our lives easier and more automated. However, nothing seems to be gaining more excitement than the automation of vehicles. Technological advancements are reducing accidents and making driving safer, more comfortable and convenient.

But if you are a truck driver, the automation of vehicles may seem like a cause for concern. You may be worried what the rise of self-driving trucks could mean for your industry, or more specifically, your job. Recently, Goldman Sachs released the prediction, “as autonomous vehicle technology peaks, as many as 25,000 trucker jobs could be eliminated per month or about 300,000 annually.”

This sounds like a concerning prediction at first, but upon a closer look, this statement is quite vague. We are decades away from any peak in autonomous vehicle technology. In fact, vehicle automation has just begun. For now, the primary focus of automation in the trucking industry comes in the form of “platooning,” which should put all drivers at ease once they learn about it.

Platooning

Platooning is legal, digital tailgating among trucks that will decrease accidents and reduce fuel consumption among trucks. It works by linking trucks to one another using short-range wireless connections. This allows the trucks to drive closely to one another to utilize an aerodynamic benefit. The wireless connection comes into play by allowing the trailing trucks to automatically brake when the front truck slows down, as to avoid rear-end collisions.

This technology will be invaluable to fleets. Platooning has the potential to reduce fuel consumption by 5-20 percent. Additionally, the automation comes with safety technology that will help truckers stay safe on the road, including lane-keep assist, adaptive cruise control, and air brakes. As a bonus, platooning technology would not even require fleets to purchase new trucks or costly equipment. As a recent panel discussion, Michael Roeth, executive director of the North American Council for Freight Efficiency (NACFE), discussed how everything you would need for platooning is already in most trucks.

“Safety equipment like automatic braking and lane keeping are options fleets can buy on their trucks, and they are being bought on a pretty high scale with no regulations requiring them. A lot of the technology that is required to platoon two trucks is already on the truck. Now we just have to figure out how to handle the vehicle-to-vehicle communication.”

Trials of platooning are happening now across the world with hopes of commercial operations beginning as soon as 2019 in the U.S. However, more realistically, platooning will not be the norm until 2030.

Will Vehicle Automation Lead to Job Cuts?

While platooning will be a large advancement in trucking technology, it is nowhere near the self-driving cars we imagine when we think of vehicle automation. In fact, platooning will still require a high level of driver readiness. An alert and active driver will still be needed to operate each truck as they typically would, and the platooning safety features will only work to assist a driver.

This is great news for truck drivers across the world. Not only will trucking automation not cost them their careers, but it will make their jobs easier, safer, and better for the environment.

The Future of Trucking Technology

If you are still worried about vehicle automation claiming your job down the road, a recent study by the American Center of Mobility offers some comforting words on the subject.

“Automated vehicle technology could incorrectly be viewed as a change that will eliminate driving jobs; however, the more nuanced assessment is that over the next decade, the innovation will foster broader societal changes resulting in shifts in the workplace and workforce demands.”

This means there is nothing to fear when it comes to the vehicle automation. While it may change the way you do your job and change the landscape of the trucking industry as a whole, it will not soon result in truck drivers becoming obsolete. In fact, it is just the opposite. This new technology will mean that more jobs are created, and there will be more opportunities to grow your career and education in trucking.

As the trucker deficit continues, drivers are still in high demand across the country. And with new technology rolling out, now is an exciting time to get into the trucking industry. Don’t let the new automation advances scare you; instead, let them inspire you to grow in your career.

 

Are you looking to grow your career in the commercial trucking industry? Let Mission Financial help you with your financing needs and get you behind the wheel in no time.

Autonomous Vehicles: What Does it Really Mean?

Autonomous Vehicles: What Does it Really Mean?

Autonomous vehicles are on the cutting edge of technology. Vehicles equipped with autonomous capabilities and technology are even available today for regular citizens with the purchasing power. But what about commercial vehicles? It’s no surprise that autonomous technology would be a great asset in the world of commercial transportation. Autonomous vehicles have the power to drastically reduce accidents by eliminating human error, and cut down on driver fatigue to keep drivers on the road for more hours. But how will they influence the commercial transportation and commercial truck financing industry?

The Latest Strides

In March of 2018, Google and Waymo announced that self-driving semi trucks would debut in Atlanta, transporting cargo bound for Google’s data centers. Waymo’s had this on the map for some time: they’ve actually been road testing autonomous vehicles in Arizona and California for a year. These vehicles are a distinctive bright blue and operate using the same technology that Google’s autonomous minivan, the “Pacifica,” uses. Driver distraction is one of the greatest threats to road safety, and autonomous vehicles offer protection against this.

The world’s first shipment carried out by a self-driving truck occurred in October of 2016, moving a large transport of Budweiser (over 50,000 cans).

Driver Readiness

When people think of autonomous vehicles, they picture a driver reading a book or watching a movie in the cab of car while the vehicle assumes complete, trusted responsibility. But the truth is that’s not always how it works. There are actually varying degrees of autonomy that demand different levels of “driver readiness.” So what is driver readiness? It is the state of a driver being ready to respond and act while operating an autonomous vehicle. Today, all autonomous vehicles require a base level of driver readiness.

There are six levels of driver readiness. For example, level zero is full control over the vehicle, the way you normally drive a regular car. Between levels 3-5, the system becomes more equipped to change lanes and turns. Level 5 is defined as a vehicle with autonomy to perform all driver functions that a human driver can. However, these vehicles still require someone to pilot the car to ensure safety, and must remain ready to intervene. This is good news for truck drivers worried about losing their jobs to autonomous vehicles, because the technology is still a bit removed from allowing unmanned vehicles onto the road. Highway driving is significantly easier for the AI technology to adapt to, but urban and narrow roadways prove more complicated. The ideal scenario would require a human driver to take over during more complex traffic scenarios, but allow the AI to take over once on the highway.

The University of Michigan’s Center of Sustainability predicts that these vehicles have the ability to reduce crashes by 90%. Not only is this valuable in preventing injury or deaths on the road, it also saves time by preventing delays that would result from accidents. This would also prevent potential costly damages against cargo as well. It’s easy to see the benefits that AI could have for the commercial transportation industry. Not to mention that autonomous technology would allow drivers to make fewer stops, saving time on their trips.

How does this technology work? Some AI systems reportedly function through a network of cameras that record a images that it then pieces together to form an idea of what’s going on in the “world” around. These images are processed constantly to form an ever changing “map” of the moving world.

Impact on Commercial Transportation

ABI Research conducted a survey to determine how likely large transportation companies are to utilize new technology with in their commercial vehicles. They found that 18% of respondents indicated that they are already in the process of addressing their options for autonomous vehicles.

The advent of advanced autopilot systems for commercial vehicles and semi trucks may also affect the industry by encouraging more people to become truck drivers. According to Fortune, there is a shortage of truck drivers on the road today. For every 12 loads in need of transportation, there was one 1 available truck driver, according to industry analysis. The average pay for drivers has even increased in the last several years. Yet, many people don’t feel comfortable taking on a job that requires long hours and lengthy sleepless shifts. These “copilot” systems would ease the strain placed on truck drivers, preventing accidents (particularly at night) and allow drivers to relax more during their trip (or even sleep in some cases). The technology also makes truck driving a safer job, for those who are interested in truck driving but were concerned about the risk of accident.

The systems simultaneously allow one driver to maximize their time by almost triple, a valuable asset in a market with limited drivers right now. Today, the FMCSA limits drivers to working 60 hours per week and taking specific breaks, but these regulations could yield more profit in that time with the advent of AI.

Another possibility is known as “platooning,” in which a trio of semi trucks drive in unison—one or two of them manned by drivers and a third truck self-driving. Platooning is a strategy that keeps trucks driving at a constant speed, less likely to be disrupted by traffic flow. This means lower fuel consumption, lower carbon dioxide emissions, greater traffic safety and it allows the truck technology to communicate.

Impact on Semi Truck Financing

At this stage, it’s unclear how this technology will impact the semi truck and commercial vehicle financing industry. The availability of autonomous vehicle technology to owner-operators is most likely a ways off. These semi trucks today are financed by large companies and carriers (like Otto, owned by Uber) who have invested in research and testing.

Dealership lending and direct lending to owner-operators is a vital component of the commercial transportation industry. Drivers need loans to afford their trucks—whether it’s one truck for a single owner-operator or an additional truck to add to their fleet. Whatever changes arise in the commercial trucking industry, lenders are invested in providing a means for drivers to earn a living.

 

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