How Uber Freight is Driving AI-Powered Logistics

Uber Freight is embedding artificial intelligence at the heart of freight operations, with a strong emphasis on enhancing procurement processes and strategic decision-making in logistics. 

As the company scales the first AI-powered logistics network, its transportation management system (TMS) looks set to become a procurement and supply chain ally – transforming how shippers of all sizes plan, execute and manage freight.

The company’s latest innovation is built around a logistics-specific large language model (LLM), developed in-house and integrated directly into its TMS and broader logistics platform. 

This model, trained on nearly US$20bn in managed freight data, including volumes from 30% of the Fortune 500, enables the system to provide not only intelligent insights but context-aware recommendations. 

These are grounded in the complexities that many procurement leaders face when managing cost, supplier performance and risk across transport networks.

"This is the inflection point we've been building toward," says Lior Ron, Founder and CEO of Uber Freight. 

"With the launch of our AI logistics network and reimagined TMS, we're not just automating tasks, we're enabling a new level of agility, foresight and competitive advantage for our customers."

TMS evolves into a strategic procurement tool

Uber Freight’s upgraded TMS aims to become a logistics command centre, moving beyond a passive record system. 

By the end of 2025, the company intends to deploy over 30 AI agents throughout the platform. These will automate the full shipment lifecycle, from initial procurement and pricing through execution, tracking and final settlement.

Procurement teams benefit directly from this kind of enterprise automation. Insight AI, the intelligence engine at the core of the system, delivers always-on guidance to anticipate market changes, reduce transportation costs and improve supplier performance. 

It assists in reshaping how logistics categories are sourced, managed and evaluated, with cost control, network planning and risk mitigation now informed by live operational data.

With over US$1.6bn in freight already moved through this infrastructure, five enterprise clients are currently testing the reimagined TMS. 

These early partners help to validate AI-driven approaches to strategic procurement, using the LLM to make informed decisions and adjust sourcing tactics with precision.

“Logistics is one of the most complex, data-rich industries on Earth and it demands AI that's purpose-built to understand it," says Raj Subbiah, Chief Product Officer of Uber Freight. 

"We built a domain-specific model that thinks like a logistics expert. That foundation enables us to proactively and continuously optimise our customers' networks."

Colgate-Palmolive pilots AI-powered insight

One of the most high-profile adopters of this AI-led transformation is Colgate-Palmolive. 

The consumer goods company has been using Uber Freight’s Insight AI across its North American operations as part of the Design Partners Programme. 

For procurement professionals, the use case shows how AI can shift logistics sourcing and contracting from reactive to proactive.

"Colgate-Palmolive is a caring, innovative growth company that is reimagining a healthier future for all. We advance our purpose by selling our essential health and hygiene products in more than 200 countries and territories, with a global supply chain to support this reach,” says Tatiana Martinez, Vice President, North America Customer Service & Logistics, North America at Colgate-Palmolive.

"With the scale and complexity of our operations, the collaboration with Uber Freight on Insights AI has helped empower our team to access timely information, analyse our network, and make strategic decisions that drive faster growth.

“Insights AI has helped us plan with greater confidence and respond more effectively to disruptions, all in service of our ongoing commitment to customer centricity and operational efficiency.”

Colgate-Palmolive's procurement and logistics teams now receive AI-driven recommendations that support cost optimisation and disruption response, while enabling strategic alignment across sourcing operations. 

As a result, the company has improved planning cycles and risk responsiveness – two critical elements for a global procurement function.

Automating execution across the shipment lifecycle

As more logistics organisations seek visibility and efficiency across their supply chains, Uber Freight’s suite of AI agents offers an operational edge. 

These agents manage daily procurement execution, coordinate shipment tracking, handle payments and provide analytics, freeing procurement leaders to focus on supplier strategy, market analysis and performance management.

By connecting AI to procurement operations, Uber Freight delivers a model where intelligence not only supports sourcing but also automates it, shifting freight procurement into a fully responsive and continuously optimised process.

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