Chicago-based Uber Freight said it is deepening its push into last-mile logistics through an expanded partnership with Better Trucks, aiming to meet shipper demand for lower costs alongside speed and reliability, reports New York's Journal of Commerce.

Hany Elkordy, head of logistics and last-mile at Uber Freight, said affordability has become as critical as speed and reliability for shippers amid tariffs and softening demand. He warned that companies unable to cut costs risk layoffs, including logistics managers struggling to reduce transportation expenses.

Shippers told the Journal of Commerce they are narrowing service providers, seeking alternatives to higher-priced carriers such as UPS and FedEx, and extending payment periods.

Mr Elkordy said transportation remains the largest cost item in profit and loss statements, creating pressure ahead of 2026 contract talks.

UPS and FedEx continue to drive annual rate increases, he noted, pushing merchants and e-commerce firms, especially smaller players, to look for alternatives. He said this trend is fueling growth opportunities in last-mile logistics.

Uber Freight's expanded partnership with Better Trucks includes an undisclosed investment and access to its network of warehouses and sortation centres using independent drivers. The deal also provides Uber with Better Trucks' technology to strengthen its delivery network.

Mr Elkordy, who previously worked at Amazon, Walmart and Chewy, said Uber Freight is building a middle-mile network that regional delivery providers can plug into. He added that Better Trucks' technology will help connect geographies and power the final mile within Uber's own network.