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Not who you responded to, but I've listened to a number of interviews from the former CEO (highly recommend the Odd Lots podcast for his interviews and many oth
by DavidPeiffer 4y ago
Not who you responded to, but I've listened to a number of interviews from the former CEO (highly recommend the Odd Lots podcast for his interviews and many other supply chain related conversations). A couple concepts, some details may be a bit off and I'm very open to correction.
There is a lot of administrative cost. IIRC, you might have something like 1 dispatcher for every 50 drivers. You have other people giving quotes via phone, decently high turnover for truck drivers, slow loading warehouses that cause a cascading effect when the driver can't complete all the stops planned for the day, and a strict limit on hours worked for truckers.
Some of the pandemic port congestion was truckers arriving at a port to pick up a particular load, but that load wasn't ready right then. Flexport has an app which basically let drivers on their platform arrive at a port, grab any container that's part of their platform, and take that to the destination. This prevented countless hours of idle trucks in ports.
- bambax 4y agoThere was an article I think on HN a couple of days ago, wondering why Uber and Lyft still couldn't turn a profit after all these years, while cab companies are still around and thriving, and wondering where all the money went. Isn't it possible that tech simply overpromised, and that a couple of guys here and there smoking, typing numbers in spreadsheets on old computers, yelling over the phone and writing things down on post-it notes are simply cheaper and just as "efficient" as an army of AWS EC2 instances spilling out logs on S3 under the supervision of highly-paid engineers and dev op guys?
- coffeebeqn 4y agoIf you think about it you still need the same amount of drivers but a lot more administrative staff in the form of a world class engineering team. How could it be cheaper?