I find this fascinating. What happened to the morons a few years ago? (dropping Byrne because I can't read his side of the conversation)
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Replying to @random_eddie @MorlockP
The begining of start-up logistics companies, people started using better tracking systems. BUT there are still morons and shady dudes in there. A lot of this stuff is contracted out and then sub-contracted out.
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I had a young Russian Uber driver tell me about all the BS they'd tell their contractors in order to hold a short-term shipment in order to get another load in it. They'd make up breakdowns, storms, etc. He'd used multiple names/numbers on the phone.
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Replying to @ElamBend @random_eddie
I've heard that car shipping is similar. Tagging @byrneseyeview back in, bc he might have insights. Why is trucking full of so many independent contractors / 1 man firms? Big firms w reputations don't do shady crap nearly as often, bc brand is asset that is devalued. >>
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e.g. UPS and FedEx don't lie to you. Jim's shipping does. So why isn't it consolidated? Would consolidation raise prices, and thus customers implicitly prefer small-and-flaky? Do very low capital costs mean that indies are always springing up? What?
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Replying to @MorlockP @random_eddie
I think both of those are the main drivers, both feeding each other. And small-and-flaky sometimes becomes medium and reliable. Plus the big boys can use them and avoid capital expansion (either seasonally or if they foresee recession or plain old balance sheet magic)
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Replying to @ElamBend @random_eddie
AHHHHHHHHHHHHHHHHHHHHHHHH I think you just put your finger on part of it but, also, I do want to double down on "very low capital costs". There are far more electricians working for themselves than for big firms. A van is $250/moth, and tools are < $2k.
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Replying to @MorlockP @random_eddie
there's something else in your analogy also. Big electrical firms do big jobs. A ton of small jobs is too much a headache when they can do a few big jobs. Shipping works the same way & thanks to JIT manufacture AND the interweb (Amazon) there are a ton more small jobs
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Replying to @ElamBend @random_eddie
@asymmetricinfo said something once: small firms are NOT a big source of jobs, and are NOT very profitable (on average) [ I agree w both after running one for 14 years], but DO provide "liquidity" at the margin Need 20 copies of XYZ done, to your specs? Call a small firm.2 replies 0 retweets 5 likes -
"liquidity at the margin" Exactly. Some graduate to medium size and beyond, I lot blow up thanks to ineptitude, bad luck and Russianess
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"Russianess" is definitely why Smartflix / Heavyink collapsed
#ThanksPutin
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germanness, iirc
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Replying to @mr_archenemy @MorlockP and
When I said Russianess; I was referring to the shipping firm lying to clients in order to pack their trucks.
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