The past few years have been turbulent for the trucking industry. Yet despite everything, trucking startups and small to mid-sized fleets performed very well in 2020. That momentum is slated to continue, and more entrepreneurs and owner-operators are looking to launch their own trucking companies in 2021.
Trucking Startups Can Do What Large Fleets Cannot
Smaller trucking companies can operate in ways that larger fleets cannot. For one, trucking startups can provide true “last mile” deliveries. While large fleets can only operate along certain routes, trucking startups can reach small towns and navigate to customers that would be “out of bounds” for major carriers. Additionally, small and mid-sized carriers can be hired to fill in gaps for larger fleets when capacity and demand are high, which larger carriers cannot do for smaller fleets.
There Is Room For Growth
The rollout of the Drug and Alcohol Clearinghouse forced a number of large carriers to lay off drivers. The end result widened the driver deficit, and diminished the coverage provided by large carriers. During the pandemic, e-commerce skyrocketed, bringing a much larger demand for spot shipments. Together, these two events made room for trucking statups to carve out their share of the market. Some smaller fleets are not even using full-sized Class-8 vehicles. Instead, they are using vans and smaller vehicles to haul spot shipments more efficiently and with lower costs, catering to LTL and e-commerce deliveries. Expect trucking startups to bring more innovation to the table as 2021 unfolds.
Scalable Revenue Model
Trucking startups are better suited for local deliveries and e-commerce market shifts. Spot rates are on an upswing, and smaller carriers are poised to optimize their cash flow by catering to these market trends. Because small to mid-sized fleets can take on spot shipments, as well as filling in when larger carriers are in need, they can scale their operations and fine-tune logistics at a granular level that big trucking companies cannot.
Launching a trucking startup can be a complex and time-sensitive affair. At Single Point Capital, we can help your launch your own trucking company. We will offer guidance and handle paperwork and permits. Our startup services are available exclusively to clients who have signed up for our factoring services. If you want to get a jump start on getting your share of the trucking market in 2021, contact the team at Single Point Capital today.