Is the hybrid carrier the future of freight transportation?

Convoy co-founder and CEO explains industry’s struggle to leverage economies of scale

Shippers’ diverse distribution networks and consumers spread around the world make it difficult to define a single set of shipping practices. The abundance of carriers, often with fewer 10 trucks, each run custom lanes dependent on their drivers’ needs and market conditions. Lastly, brokers utilize different selling models while promoting distinct niches.

But in a recent blog post, Dan Lewis, co-founder and chief executive officer of digital freight marketplace Convoy, suggests that FreightTech offerings have paved the way to disrupt fragmentation with a new model of shipping: the hybrid carrier model. Lewis’ main focus is on the principle of economies of scale, through which cost advantages are achieved by increasing a level of production. Put simply in freight terms, the more shipments available within your network, the more likely you are able to bring down costs and waste for shippers.

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