o/o ..would you go into business with other o/o's?

Discussion in 'Ask An Owner Operator' started by darknessesedge, Feb 25, 2014.

  1. darknessesedge

    darknessesedge Medium Load Member

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    to build a bigger company?
     
  2. lovesthedrive

    lovesthedrive R.I.P.

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    Only way I would do it is if they offer a better price per mile.
    Sometimes there are small O/O's that have become their own broker and will offer a really decent rate if your local to them. Granted I live in a rural area where people still are judged by the sweat on their brow.
     
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  3. 281ric

    281ric Road Train Member

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    I would never partner w someone, I think its really hard for both people to have the same drive, ambition,work habits and vision for the company.
    I have known 1 or 2 that work out but I have known alot that end up as enemies.
     
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  4. Ed MacLane

    Ed MacLane Light Load Member

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    I would consider doing it. I know of a company that did just that. They are a group of owner-operators and they operate like a co-op. Their legal structure is an LLC and I think they're all member owners of the LLC. I forget some details but they also do something that kicks them out of the LLC if they don't take care of their share of compliance matters. They got better rates and contract terms as a larger carrier than they did when they were all one truck operations. Now they can offer more service to customers and have the flexibility to have loads covered because of the other trucks so service is maintained while a truck is out of service or a driver takes time off.
     
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  5. Lucar

    Lucar Road Train Member

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    Agreed my friend, I tried it twice but the other parties came short
     
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  6. camaro68

    camaro68 Medium Load Member

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    I had a post about trucking co-op I wrote back in 2012.....
    http://www.thetruckersreport.com/tr...r-operator/165922-o-o-owned-broker-co-op.html
     
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  7. Ed MacLane

    Ed MacLane Light Load Member

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    In the thread you started the question was about the feasibility of a group of owner-operators to own a brokerage and the replies all tried to view it through that lens and the consensus was it probably wouldn't work and didn't make too much sense in the end.
    I think the company I referred to does't operate with that model. They simply operate as a motor carrier. So it's a group of owner-operators that work together as one motor carrier rather than individual one truck motor carriers. Most, perhaps all, of the owner-operators were individually owner-operators with their own authority as is typical. So some of the issues brought up in your other thread wouldn't be a problem. As a result of one motor carrier authority they all became leased owner-operators, but they all do own the company they're leased to.
     
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  8. camaro68

    camaro68 Medium Load Member

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    Your right about my idea, the consensus was that it probably wouldn't work.
    Sounds like the motor carrier group you mentioned have a good thing going. They can cover multiple loads from one shipper working together.
    I wonder how many o/o's are part of the carrier group? And how they set up making decisions among the group?
    This type of deal might be what the future holds for o/o's.
     
  9. BAYOU

    BAYOU Road Train Member

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    I work close with two owner operators it's ones I can trust to cover my over flow and help them with there's if I'm busy and there busy I simply tell the customer I don't have anyone available.
     
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  10. 281ric

    281ric Road Train Member

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    be careful who you call. I had to " aquaintances " back solicit the customer I needed help with and called them. Low in my book but whatever