Subject category:
Strategy and General Management
Published by:
Amity Research Centers
Length: 13 pages
Data source: Published sources
Abstract
As of 2019, the US trucking industry was a USD700 billion market and was set to grow further. However, it was fraught with inefficiencies and was ripe for disruption. Every year, American trucks were wasting billions of miles, driving empty and carriers grappled with finding loads to match their equipment and availability. The entire industry was quite antiquated, relying on manual processes to connect shippers and carriers through freight brokers. Realising the scope for an Uber-style functionality to usher efficiency into the industry, Drew McElroy and Salama launched Transfix, an on-demand freight logistics marketplace and trucking mobile solutions company that helped to connect shippers and carriers more efficiently. Transfix was operating successfully and had plans to reach USD1 billion in revenue, with double-digit operating margins by 2021. Meanwhile competition was increasing in the trucking industry space, which was highly fragmented. Would Transfix be able to succeed in its attempt to disrupt the trucking industry? What strategies the startup would use to achieve its goals?
Teaching and learning
This item is suitable for postgraduate courses.Time period
The events covered by this case took place in 2019.Geographical setting
Region:
Americas
Featured company
Transfix
Employees:
51-200
Turnover:
USD 80 million in revenue (2018)
Type:
Partnership
About
Abstract
As of 2019, the US trucking industry was a USD700 billion market and was set to grow further. However, it was fraught with inefficiencies and was ripe for disruption. Every year, American trucks were wasting billions of miles, driving empty and carriers grappled with finding loads to match their equipment and availability. The entire industry was quite antiquated, relying on manual processes to connect shippers and carriers through freight brokers. Realising the scope for an Uber-style functionality to usher efficiency into the industry, Drew McElroy and Salama launched Transfix, an on-demand freight logistics marketplace and trucking mobile solutions company that helped to connect shippers and carriers more efficiently. Transfix was operating successfully and had plans to reach USD1 billion in revenue, with double-digit operating margins by 2021. Meanwhile competition was increasing in the trucking industry space, which was highly fragmented. Would Transfix be able to succeed in its attempt to disrupt the trucking industry? What strategies the startup would use to achieve its goals?
Teaching and learning
This item is suitable for postgraduate courses.Settings
Time period
The events covered by this case took place in 2019.Geographical setting
Region:
Americas
Featured company
Transfix
Employees:
51-200
Turnover:
USD 80 million in revenue (2018)
Type:
Partnership