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> Also, I had a feeling that Flexport might run into problems one day, when Softbank invested, Softbank being such a harbinger of problems its only saving grace
by braza 3y ago
> Also, I had a feeling that Flexport might run into problems one day, when Softbank invested, Softbank being such a harbinger of problems its only saving grace is setting Saudi money on fire. Also also, Flexport is the most impressive comoany coming out of YC if you ask me. All they have to do, is to aim being the next Schenker, Kühne & Nagel, XPO... instead of being the "global trade disruting tech thing" and they'll be fine.
One very underestimated aspects of the logistics business is trust. Specifically trust in your carrier/forward-freight/etc company.
The least thing that you as a SME and/or a BigCo. wants is to have one of the companies that deliver your physical goods (that implied some manufacturing and other resources in advance) being carrier for some unstable company[1] in terms of cash with financiers (e.g. Venture Capital) that characteristically has the reputation to make it or fail.
[1] - Of course airlines and some other companies has those two issues, but differently than most of VC business, in some cases the government and/or the market will come for a bail out.
- Closi 3y agoI think this is an interesting point - I work in supply chain and commonly when tendering companies will say things like: "We have been profitable for 20 years straight" Being profitable in SCM is a sales point, being unprofitable is a risk.
- anonzzzies 3y ago> "We have been profitable for 20 years straight" I don't know why this is more of a thing for other fields as well. I like my suppliers to be profitable for decades. All the new and shiny is ... well, new and shiny. Long term, I want stability, not new and shiny.
- ChainOfFools 3y agoI have a close non-business connection to a reasonably large Intermodal carrier that serves the rails and the ports in the northeast US, and featured very prominently on their website page header is the number of years that they have been in continuous operation. Fluffy promises of service or growth or expansion are either completely absent from their corporate Identity material or buried on second and third tier links away from the simple and straightforward proof that they have quite literally delivered, for the past two plus decades.