Some Analysts Cool on TruckersB2B
A plan for TruckersB2B to bring together a host of carriers for volume-buying discounts has yet to hit pay dirt as parent-company Celadon Corp. reported $4.7 million in losses this fiscal year.
Some analysts are skeptical of TruckersB2B’s business model because they say there are no barriers to entry. Critics say competitors will eat away at TruckersB2B profits, if there are any to be made, by offering deeper discounts. Customers are unlikely to be loyal if they can find better prices elsewhere, according to TruckersB2B’s naysayers.
For the full story, see the Sept. 11 print edition of Transport Topics. Subscribe today.
But corporate officials maintain the losses are not unusual and say if they weren’t investing money to build their company, they would likely make money with their existing subscribers.
The online buying cooperative offered shares valued at $2.4 million to vendors that provide discounts to TruckersB2B customers, and lost an additional $2.3 million in cash, according to Stephen Russell, Celadon’s chief executive officer.
 |  |
