Tina Bellon

(Reuters) – A continuing decline in the on-demand pricing of trucking could lead to the exclusion of tens, if not thousands, of smaller operator-owned trucksing companies who rushed into market earlier this year when rates were rising. Uber Technologies (NYSE.) Inc’s chief freight officer stated.

In an interview, Lior Ron of Uber Freight stated that rising diesel fuel prices and leveling U.S. consumers demand mean many truckers who are owner-operators would need to leave the business if they see their price drop another 10%-20%.

Uber data revealed that rates in the spot market on demand have fallen another $0.30 per mile in April. This is faster than usual seasonal fall.

Ron stated that the “first casualties” are often the smaller guys because of the higher operational costs.

The sudden sharp decline in U.S. Spot Market – used to meet demand peak not covered by traditional trucking agreements – is causing investors concern about larger economic consequences if this trucking slump spreads.

Uber data revealed that over 20,000 long-distance drivers were lured by the high prices and desperate pleas from shipping companies and carriers for truckers to help them.

Ron explained that trucking companies were now considering produce season (which is underway in Florida during May) and beverage season (which runs through the summer), to see how they impact spot rates as well and the supply of drivers.

Uber Freight acts as an intermediary between shippers and truckers. In 2012, it bought Transplace logistics company for $2.25 billion. Uber Freight was able to increase its revenue by $1.8 million in the first quarter and reach profitability using adjusted EBITDA for the first ever time.