Trucking platforms face lower supply acquisition costs than Uber and Lyft
Dan Lewis · 1160 Convoy, The Uber for Trucking, Charges Avg $4/mile on 100 mile trip, Takes Less Than 20% Per Unit Shipped · Sep 27, 2018 · at 11:39
Dan Lewis, co-founder and CEO of Convoy, contrasts the economics of acquiring supply in freight logistics versus consumer ridesharing platforms.
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“They said, let's take people that don't do this as their full-time job and get them to come become drivers and build up a new supply of drivers. So if you're trying to get someone to leave their old job or whatever they were doing to make money before and start driving for Uber or Lyft to make money, you need to really subsidize their income for a while Until there's enough business for it to be self sustaining. And so they created a new supply base from scratch. And there's a very, very large upfront cost in that. Whereas in trucking, it's different. There are millions of truck drivers where this is their full-time profession.”
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