The important role of transport technology in online and in-store shopping

Vignan Velivela is the co-founder and CEO of AtoB.

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When shoppers flocked to online retailers like Amazon in 1995, few could have predicted how online shopping would transform retail. While some feared the rise of online shopping would drive brick-and-mortar stores out of business, it has had the opposite effect.

Many pandemic-era shopping trends—such as curbside pickup and in-store returns for items purchased online—are now regular practices as consumers seamlessly switch between online and offline spaces. This integrated, omnichannel shopping experience has solidified the symbiotic relationship between online and brick-and-mortar retailers, underscoring the importance of moving goods from warehouses to stores or customers with maximum efficiency—a need that relies on the trucking industry.

Trucking, a key part of omnichannel shopping, facilitates the timely movement of goods from their original destination to the store warehouse, ultimately reaching the shopper’s desired location. As the boom in online shopping has enhanced—not replaced—the in-store shopping experience, trucking remains critical to both sides of the trade equation. That’s why it’s critical that the trucking industry is supported by cutting-edge tools to keep up with consumer demands.

A Brief History of Innovation in the Trucking Industry

With the introduction of GPS to trucking in the 1990s, a new era of efficiency in retail was born. A technology that most of us now take for granted, GPS tracking allows consumers to see the location of goods en route and receive accurate updates on delivery times. Retailers are able to better manage routes, inventory, and orders, while providing better customer service.

Telematics and IoT (Internet of Things) devices have also helped transform the trucking industry. Telematics systems enable real-time data collection on vehicle performance, driver behavior, and environmental conditions, providing information that helps fleet managers optimize routes, improve fuel efficiency, and reduce maintenance costs. When integrated with telematics, these IoT devices monitor everything from tire pressure to cargo temperature, ensuring that goods are transported in optimal conditions, reducing waste, and increasing customer satisfaction.

The advent of electric and autonomous trucks is another significant step forward in the world of trucking. Electric trucks promise to reduce the trucking industry’s carbon footprint, which aligns with global efforts to combat climate change. Companies like Tesla and Volvo are leading the way with electric models that offer impressive range and efficiency while significantly reducing their environmental impact. Meanwhile, autonomous trucks are being tested for their potential to revolutionize long-haul trucking. Equipped with advanced sensors and artificial intelligence, these vehicles aim to increase safety, reduce labor costs, and shorten delivery times.

While advances like GPS tracking, telematics and other technologies are benefiting retailers and consumers, improvements for short- and long-haul fleet owners and drivers have lagged behind. Fortunately, new technologies that work in tandem with existing tools are designed specifically with drivers and fleet owners in mind. The more widely these new tools are adopted, the more everyone — consumers, truckers and fleet owners — will benefit.

The Way Forward: Fintech Tools for Trucking

The challenges facing the trucking industry, such as outdated payment systems and technology solutions, aren’t just a problem for truckers and trucking companies—they’re issues that affect the health of domestic trade. Truckers and fleet owners need technological advances that help them, too, which in turn help everyone. That’s where financial technology comes in.

Updating payment systems for trucking companies and drivers is critical to keeping the momentum going. Truckers face a number of challenges under the current system. Many trucking companies still use paper checks to pay drivers, which can take up to 90 days to receive. When truckers are faced with delinquent payments, they often have to take out short-term loans to cover their transportation costs. As a result, the trucking industry is one of the industries most likely to use short-term loans for workers, forcing drivers to pay notoriously high interest rates—a practice that is unfair to truckers and small businesses and damaging to the industry as a whole.

What’s good for trucking is good for new trade

While no one has a plan for where shopping habits will go, it is clear that we need to continue to modernize the trucking industry because the success of commerce depends on it. Fintech solutions are at the heart of helping the trucking industry and, in turn, keeping domestic trade strong. Updating outdated financial tools and systems for truckers will not only improve the lives and bottom lines of fleet owners and truck drivers, but will also support the growth of retail as it evolves into the future.

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