TruckersB2B Vendor Investment Leaves Some Analysts Cool
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.
The company gives shares to venders to guarantee “a degree of exclusivity.” Participating vendors are not allowed to offer the same discounts to others that they offer to TruckerB2B members.
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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.
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