German freight operator DB Schenker recently partnered with Austin based e-commerce company uShip to connect more seamlessly to its clients.
The operator is the logistics unit of Deutsche Bahn AG, which coordinates air, rail, land, and sea shipments for retailers and manufacturers.
Through the deal, uShip will provide exclusive user rights in Europe for its digital freight booking platform.
DB Schenker is the world’s third largest third party logistics firm with $17 billion in revenues last year. The company scrapped plans to develop an internal booking platform to partner with uShip so it can offer online services in the soonest possible time, uShip chief technology officer Nick Parker said.
The rapid growth of e-commerce has fragmented retail supply chains, pushing traditional freight companies to handle smaller quantity shipments and under shorter timelines as their clients try to meet consumer demands.
uShip also stands to benefit from the deal . It reported $160 million in revenues last year.
Analyst Cathy Roberson said that partnering with a third party logistics (3PL) company will expand the company’s reach further, in a market that is increasingly becoming crowded. She added that more such deals can be expected within the industry with consolidation emerging as a dominant trend.
Specifically, DB Schenker will use uShip’s PRO platform in its European trucking unit, a statement said. Trucking firms can tender quotes for shippers, and customers can book and track their shipments on mobile devices through the application.
