Strong Network Enhances Cross-Border Logistics

Q: What role does Mexico play in Uber Freight’s overall strategy, particularly for cross-border logistics?

A: Mexico is crucial for Uber Freight and a significant revenue driver. Three years ago, we acquired 3PL/4PL provider Transplace, allowing us to solidify our foundation in the market.

Uber Freight employs over 4,000 people globally. As nearshoring rises, Mexico is becoming central to our growth, helping us expand our customer base and reach other Latin American countries. 

Q: How does the company use technology to streamline cross-border operations, particularly through the new Innovation Center in Mexico City? 

A: Technology is integral to Uber Freight’s “relational logistics,” which combines advanced technology with local expertise to maximize efficiency for shippers. Our Innovation Center in Mexico City is key to improving cross-border logistics by addressing major challenges like visibility and control of the supply chain. With our multimodal tracking and tracing solution, shippers can monitor shipments across various transportation modes, both across borders and within Mexico. 

Customs, which represents 50% of our business in Mexico with its partnership with Uber Freight Mexico Customs powered by TP Laser, is another key area that we are transforming through AI and systems integrations. These advances provide real-time updates on shipments status, including delays or documentation issues. We also invested US$1 billion to tailor our transportation management system (TMS). This system supports local vehicles, traditional transportation terms and conditions, and currency, helping shippers optimize their intra and cross-border logistics.

Q: How is Uber Freight using its distribution network in Laredo, Texas, to meet the growing demand for inventory management and ease capacity challenges?

A: Our nine distribution facilities in Laredo — the main gateway between Mexico and the United States — play a key role in storing inventory for efficient distribution to US centers and retail stores. We facilitate transportation by shipping products from/to Mexican plants, handling customs with our partnership with Uber Freight Mexico Customs powered by TP Laser, and preparing them for US shipment. Once orders are received, we integrate with customers’ ERP systems to handle picking, assembly, and final shipment, using our own truckload and intermodal capacity. Demand for distribution space in Laredo is expected to increase as companies seek to hold inventory closer to the US market.

Q: How is nearshoring impacting your logistics strategy in Mexico and which industries are driving the demand for your services?

A: The future looks promising for Uber Freight in Mexico. Uber Freight operates in over 75% of Mexican customs through its partnership with Uber Freight Mexico Customs powered by TP Laser, processing more than 25,000 entries monthly through its offices in Laredo, Queretaro, Manzanillo, and Monterrey, with a US control tower handling about 7,000 entries. In the past year, we saw a 77% year-over-year increase in cross-border new business production from our shipper base, and we expect this trend to continue despite uncertainties in the political landscape of both countries. 

We see strong demand from the electronics sector, Tier 1 and Tier 2 automotive suppliers, and manufacturers of home appliances, such as air conditioning. New businesses are also entering Mexico, including companies producing furniture, jet skis, and artificial grass. 

We see large opportunities for intermodal conversion as rail accounts for less than 5% of US-Mexico trade. As capacity tightens, shippers will need to explore alternatives beyond traditional truckload shipping. We have also expanded our services to include ocean freight options from Mexico to various ports in the Gulf of Mexico, giving shippers more choices alongside truckload and intermodal services. Continuous investment in technology is crucial to address security concerns and streamline processes. We must also tackle other challenges, including the provision of the labor, energy, water, and transportation services needed for new plants.

Q: What strategic initiatives helped Uber Freight reach US$750 million in Freight Under Management in Mexico?

A: This milestone is the result of our focus on strengthening relationships with existing customers, particularly 4PL clients. We leverage customer data and feedback to identify opportunities to improve service in specific lanes and corridors. We also collaborate with other carriers to boost on-time pickups and deliveries through targeted action plans.

We promote multimodal options, like shifting truckload shipments to intermodal transport when it benefits shippers and their supply chain. Demand from new customers, particularly in technology management, has grown as more companies seek to adopt logistics solutions like TMS to stay competitive.

In the CPG, food and beverage industries, we have observed an increase in demand for new technology as traditional manual logistics processes are no longer sustainable. We assist clients in automating and streamlining their operations, allowing companies to optimize their logistics processes and use their workforce more effectively. This transformation enables their employees to focus on strategic initiatives and efficiency improvement projects, ultimately benefiting their core business. This is available to other industries like industrial, paper & packaging, retail and chemical.

Q: What are Uber Freight's growth expectations and key plans for further expansion in Mexico and Latin America in 2025?

A: We have a dedicated team of over 1,300 employees and 10 cross-border locations across Mexico and the U.S. We plan to expand into new cities and states where we lack a presence, but we also aim to expand throughout Latin America and beyond. We have nearly US$20 billion freight under management, that includes our US business and we also have a presence in Europe and Canada. By effectively using our network, we aim to connect various logistics points, reduce empty miles, and increase capacity, ultimately creating value and elevating service level for our customers.

Uber Freight is a freight shipping service platform and 3PL/4PL service provider that helps shippers take control of their activities and deliver on their goals.