curious what you think of the other two public competitors ability to increase their service quality / OR while raising price above odfl rates. Also idea that odfl drafted off yellow share losses to outgrow
Well, everyone has been trying to replicate the gold standard that is OD, but we are not seeing it in the numbers yet - it's just like how Toyota even invited Ford to tour their plants but Ford still couldn't replicate it (maybe it's GM instead. Raising price without increasing value can work in the near-term but eventually won't, a better game is to growing price with value added.
Didn't look deeply into Yellow, more focused on what has made OD great in the past - if OD can fold the poorly managed capacity into OD's playbook, it's a better use of the assets anyways.
What if their business model is broken now that peers have excess capacity and equivalent service for the first time ever in an industry that doesn’t grow?
Thanks for another great piece!
Thanks, Max!
curious what you think of the other two public competitors ability to increase their service quality / OR while raising price above odfl rates. Also idea that odfl drafted off yellow share losses to outgrow
Well, everyone has been trying to replicate the gold standard that is OD, but we are not seeing it in the numbers yet - it's just like how Toyota even invited Ford to tour their plants but Ford still couldn't replicate it (maybe it's GM instead. Raising price without increasing value can work in the near-term but eventually won't, a better game is to growing price with value added.
Didn't look deeply into Yellow, more focused on what has made OD great in the past - if OD can fold the poorly managed capacity into OD's playbook, it's a better use of the assets anyways.
Wonder how ODFL and CPRT would thrive in an enrivonment where AVs have become mainstream.
What if their business model is broken now that peers have excess capacity and equivalent service for the first time ever in an industry that doesn’t grow?
Then it's problem? You are saying someone can offer the same on-time % and lost parcel % as ODFL?