Business

The trucking industry is one of the most fragmented in the US – here’s why

Freight is a $ 800 billion industry that has proven too complex for a single company to dominate.

Low barriers to entry make it easy for job seekers to start a company, and competition is fierce. There are thousands of trucking companies in the United States, and market fragmentation creates huge boom and bust cycles.

Some companies have tried to merge or roll-up smaller operations, but the industry is resisting this.

New technological developments such as self-driving trucks can spur consolidation by removing one factor that keeps the industry so competitive: drivers. It won’t be easy – companies are still improving technology and the regulatory framework will need to change to accommodate these vehicles.

Watch the video above to learn more about the trucking industry and its challenges.


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