Why the fragmented trucking industry is struggling
Trucking is an $800 billion dollar industry that has proven too tough for one company to dominate.
Low barriers to entry make it easy for aspirants to start companies, and competition is fierce. There are thousands of trucking companies in the United States, and the fragmentation of the market produces huge boom-and-bust cycles.
Some companies have tried to consolidate or roll up smaller operations, but the industry is resistant to it.
New technological developments, such as self-driving trucks, could spur consolidation by removing one factor that keeps the industry so competitive: drivers. That will not be easy — companies are still perfecting the technology, and the regulatory landscape would need to be changed to accommodate these vehicles.
Watch the video above to learn more about the trucking industry and its struggles.
