uShip, the online logistics and freight marketplace provider, announced July 25 that Mike Williams has stepped down as chief executive officer and board member.
The Austin, Texas-based company also announced that chief technology officer (CTO) Kris Lamb will replace Williams as CEO. Lamb has been with uShip since December 2017, when he was hired as head of product.
“Kris is uniquely qualified to lead uShip forward,” said Jim Martell, executive chairman of uShip’s board of directors. “He’s held key leadership roles at both public and private companies, and over the last year and a half as uShip’s CTO, he’s continued to prove his leadership within the executive leadership team.
The company also announced Heather Hoover-Salomon, uShip’s executive vice president of operations and longest-tenured employee, was promoted to chief operating officer. Hoover has been with uShip since 2005.
Launched in 2004, uShip is a global online marketplace for shipping services. Individuals and businesses post items they need shipped in a variety of categories, including auto transport, boat shipping, home and office moving services, and the transport of heavy industrial equipment.
Transportation service providers place competing bids for the right to haul a customer’s shipment. uShip currently has more than 41,000 active service providers in its network.
Each month the company digitally obtains more than 2,000 companies who use the marketplace to move their business freight.
Williams, who joined uShip in February 2017 prior to the company’s $25 million Series D funding, is leaving to pursue a new leadership opportunity, according to a company release. During Williams’ tenure at uShip, the company launched In-Home Delivery, a turnkey shipping solution for online furniture sellers.
The privately held company has 210 employees. In 2017, uShip raised $25 million from logistics giant DB Schenker. The company has also raised a total of $50 million from investors including Benchmark Capital and Kleiner Perkins.
Corsia Logistics
uShip is certainly a giant corporation that has been marketing itself as a marketplace, a facilitator between customers and businesses. However, they do not seem to understand and honor the true meaning of marketplace. They do not seem to care about all of these business they gain every month. All they care is whether or not you make them money. They can suspend an account whenever they want without a reason. And yet, they tell you a possible reason is that you do not have enough bookings. You can place bids all you want, but if customers don’t book with you then you are of no use to them. And they can ban you from using their “marketplace.” And this is what happened to us, Corsia Logistics, a small family-owned company with 5 star rated reputation. How is this a marketplace then? Why do they ban a company out of the blue without any reason, and moreover without a legal right to do that?
From my review of the uShip terms, I do not see anywhere indicated a specific maximum or minimum number of bids or shipments required for any provider to book. Yet, they can ban you for not having enough bookings.
Similarly to me being at the local market selling apples – I am not required by the local regulators to sell all of my, for example, 500 lb of apples, right.
I am, however, working at the market trying to sell them, offering all of my apples, just like anyone else. I am trying by all legal means possible, lowering my prices as much as I can afford, but no more than a certain minimum. Maybe I can get a bigger table and spread them, and a tent to attract attention, which is legal, but that doesn’t mean I will sell, unfortunately. Apples are not oranges.
It is the same thing happening on uShip. We are trying, by placing as many bids as we can because this is one of two ways possible for us to complete, and hope to attract attention and book a customer. There is only two ways for most companies, placing as many bids as possible or lowering the price to an unbearable minimum where you do not profit, but at least you may book a shipment. Nothing else to offer right, only apples as many as possible, shining at the big table, and lowering the price as much as economically viable for the provider.
So, this is what all companies are doing. How many are winning? Uship probably knows the answer. Not many. So, are they going to suspend most accounts and be left with a few of the big establishments to monopolize the market? Because this is what they are doing. And this is called discrimination. In our case towards Corsia Logistics, the small company that is trying and working hard every day.
I am really struck by the way uShip is slashing an account without notice, and without any options. Why would you not want to try and help a company find a way to make things work? Why would you not want to give notice and tell a company, hey guys something is not working figure it out? I really don’t see how this is supporting a healthy marketplace led by the laws of a free market economy.
This is what uship is doing.
Sincerely,
Vasi Atanasova
Corsia Logistics
Jimmy Wells
uShip did you a favor. Trying to make money in a cesspool of undcercutting sharks is nothing more than a slow race to the bottom. Obviously, the dollar is the bottom line in such an environment. If you don’t have direct customers you’ll always be at the mercy of spot rates and bottom feeders. Good luck!
Corsia Logistics
That’s true. We don’t need to spend our time there anymore, instead focus on our own customers, business development and marketing efforts.
Cheers!