Starting a Co-Ops company of owner/operator

MikeJr

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Jan 21, 2010
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#21
Mike,

Part of the potential issue is what I experienced myself from Shiprodeep (we had previously worked with a company or two that dispatches exclusively for some 1 truck shows with some success). He'll tell you one o/o is picking up your load, then when you do not approve that o/o due to extremely high out of service % scores he'll tell you he's sending in another truck. The other truck has great safety scores and checks out entirely except that he'll still send in the first guy without telling you.

With regard to monies flowing, it doesn't really matter to him, both of the 1 truck operations are closed soon after. It's the price they pay for hauling for him.

In short: we've learned our lesson, the hard way as usual.

Keep well,
Mike
 

Michael Ludwig

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Jul 6, 2009
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#22
Mike, that's really a shame. There is plenty of work available for owner operators with long-standing companies. I don't understand why they would have to resort to that business model to try and make a go of it.
Maybe I am all wong on the business model too. Really, all I'm saying is they never covered that one in MBA classes ... LOL

As for lessons ... aren't they all learned that way ??? ... LOL
 

MikeJr

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Jan 21, 2010
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#24
Mr. Mike,
Exactly! The wife who is at home dispatching for her husband the driver is part of the business (an essential part). Shiprodeep is rebrokering to carriers who he claims work for him exclusively, who then subsequently are closed, in my experience.

Keep well,
Mike
 

Rob

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Jul 29, 2009
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#25
hasnt tim matheson been doing something like this for the last 20 years ?
Yes him and Dennis do it daily for a bunch of one truck carriers. I have used there services with 4-5 of their guys and never had an issue. When they call I just ask which guy, make sure his poop is in a group and go from there.
 
Sep 12, 2017
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#26
Sorry for late response i was out of country.

Owner Operator ABC gets his own authority but does not find it viable to hire a dispatcher as he only has one truck. We come in place and book loads on ABC's behalf. ABC picks up the load and delivers the load and sends the documents to factoring company to get paid. Abc gets paid and then they pay us afterwards. We are in touch with Shipper/broker throughout the process so the customer always knows where their product is. Doing this for over 4 years so we have great trade references.We concentrate on tough areas where its tough to find capacity for example Manhattan,ME,NH. Also operate all year round. If you have lanes that you are having issues please contact me and we can work together. Business is clean and Transparent.
 
Sep 12, 2017
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#28
Mike with Starship freight always mentions this one load which had an issue and there was discrepancies on both sides specially with the amount which was negotiated and the confirmation had a lowered amount.When we questioned we were asked to do a one time favor for Starship.

Mike and team keep forgetting all the other loads that Kiplingas logistics (one of my other carriers) did without any service issues and getting great feedback from Starship.( Have emails to back it up)

Mike if you are willing please let me know and we can get on a call and move past the issues with had earlier. We do not have to work together but you mentioning one side of the story and holding a grudge does not help anyone in this business.
 
Sep 12, 2017
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#29
Henry its not easy working as a driver and dispatcher at the same time especially on the spot market where things change frequently and have a lot of factors. If some drivers are doing it great for them but it is very difficult and frankly very dangerous.
 
Sep 5, 2018
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#31
working as driver and dispatcher, i found NOT IDEAL and can't catch those great/urgent load in these days of highly competitive market. I have found many times the load is gone within first call. How can you stay with LOADLINK every second while you're driving? Don't crash
I agree with Shripodeeep, as The CO-OP model will be working as liason on behalf of each company. I am not clear no legal perspective, but technically it is possible, even we can call the broker or shipper showing that owner/operator phone number on their side. We will be purely representing that company that time, however also explain them the model if they need/ask. I am still new bee on this mode, doing research on it last few months.
 

thebluffs1

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Jul 18, 2008
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#32
working as driver and dispatcher, i found NOT IDEAL and can't catch those great/urgent load in these days of highly competitive market. I have found many times the load is gone within first call. How can you stay with LOADLINK every second while you're driving? Don't crash
I agree with Shripodeeep, as The CO-OP model will be working as liason on behalf of each company. I am not clear no legal perspective, but technically it is possible, even we can call the broker or shipper showing that owner/operator phone number on their side. We will be purely representing that company that time, however also explain them the model if they need/ask. I am still new bee on this mode, doing research on it last few months.

Or - you could build a business that doesn't depend on the Loadlink and is actually sustainable over the long term rather than playing the spot market. More than one model that works.
 
Sep 12, 2017
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#33
Or - you could build a business that doesn't depend on the Loadlink and is actually sustainable over the long term rather than playing the spot market. More than one model that works.
Please share some tips as it must be extremely hard for single owner operator to approach a shipper directly and bid on a lane. From my understanding shippers would not entertain anyone with less then x number of trucks in the fleet. I would love to work with the shippers directly this will help me give the owner operators a fair rate.
 

Rob

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#34
Please share some tips as it must be extremely hard for single owner operator to approach a shipper directly and bid on a lane. From my understanding shippers would not entertain anyone with less then x number of trucks in the fleet. I would love to work with the shippers directly this will help me give the owner operators a fair rate.

Baloney, When Dad started he went to a couple different shippers as a one truck company. One we had for 16 years until they closed the plant. Another 22 years and still use us on a regular basis. Living off the link is all fine and dandy when it is busy. Sucks bad when it is slow..

The best advise I can give you or any other trucking start up is BE HONEST. Way to many companies out there lying through there teeth to get the load. It may work the first load but how long to you think it will last as a business model.
 

loaders

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Feb 26, 2008
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#35
Rob’s experience with his family business is quite common. Many smaller Ontario based carriers started that way. Find a shipper, usually smaller, that can utilize the flexibility a small carrier can offer. Service them to death and you will be surprised at how quickly word will spread. Take a Saturday or Sunday and drive around the industrial areas looking for potential customers. It’s not easy and takes time, and will take you out of the drivers seat for a couple of days to secure the business. A handful of shippers that ship once a week is a better business model than having one large shipper who ships every day, especially for a small carrier.
 
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Michael Ludwig

Well-Known Member
Jul 6, 2009
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#36
Please share some tips as it must be extremely hard for single owner operator to approach a shipper directly and bid on a lane. From my understanding shippers would not entertain anyone with less then x number of trucks in the fleet. I would love to work with the shippers directly this will help me give the owner operators a fair rate.
You're right ... Coca-Cola would not entertain such an approach, but there are many others that would. It takes that one person to point you in the right direction, and it takes legwork to find them.
I'm certainly not saying your system is wrong or flawed, but what I am saying is that it is relatively new, generally foreign, mostly untried, and in its limited past, has been quite suspect. You have a few hurdles to get over before the model becomes trusted, or even commonplace. Frankly, I wish you good luck, and good fortune.
While I like my business model, I am certainly not going to suggest that there may, or may not, be a better model out there.
I think we have to assume, because of the Shiprodeep moniker, that this entity is born of a culture that is relatively new to Canada, and maybe, just maybe, this is that culture's version of the family business.
Time will tell, and most likely in relatively short order, if Shiprodeep's model works or not.

As for advice ... this was told to me many, many, many years ago by a fellow from a GM dealership ...
"Do something right, or good, for someone, and probably no one will ever hear about it. But, make a mistake, or screw someone over, and the whole world will know about it.".
Word to live by.

Disclaimer: Free advice is worth exactly what you pay for it ... LOL
 
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Intrepid

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Sep 30, 2017
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#37
The model for a "co-op" has not been successful in trucking. The authority holder / insured still needs to perform all of the safety & compliance functions like maintenance records, drug testing, training, log audits...and the result tends to be more OOS citations and ever increasing insurance rates. You would tend to get a lot of cowboys girls that know everything and cannot be kept in line. It would attract the O/Os that cannot be conpliant.