39 min listen
Is Powerloop Good for the Freight Business with Andrew Kelley
Is Powerloop Good for the Freight Business with Andrew Kelley
ratings:
Length:
26 minutes
Released:
Oct 25, 2018
Format:
Podcast episode
Description
download the audio file [0:43] Please tell us about your background. Andrew Kelley is a global technology executive focused on logistics and supply chain software. He is CEO of Bell Creek Partners consulting to lower middle market private equity firms and with the objective of buying a single platform business to run as CEO. Previously he was with Vista Equity-backed Omnitracs as President of Haulme and VP Corporate Development. Prior to that, he worked at Dell focused mostly on venture investing including Nutanix, a successful $2B IPO. Overall, he has executed $30B of combined M&A and investments mostly with UBS Investment Bank’s Technology, Media & Telecom group. He began his professional career co-founding Virtual Ink at MIT in 1997 and that product, Mimio, is now part of Boxlight Corporation. Andrew has an MBA from Harvard Business School, an MSME from MIT, and a BSME from North Carolina State University [1:15] How'd you get into the freight business? I grew up on a produce farm in Maryland and that’s how I started truck driving. I’ve also driven for the North Carolina Department of Transportation. [2:17] What are you doing today? I spend all my time in supply chain and logistics because I think it’s fascinating and that there are big opportunities. [3:07] Tell us about Powerloop and its implications on the freight business. Uber launched Uber Freight a few years ago. Now, Powerloop is the latest offering from Uber Freight. Effectively, it’s a trailer leasing business. Powerloop allows for power-only units to drop and hook trailers that are pre-filled and ready to go. The advantage is that you don’t have to wait for the loading and unloading. [5:02] Is it good for shippers too? It should be. There’s a supply/demand imbalance now which causes shippers to pay more, and the costs trickle down to the end consumer. [6:25] What is the overall landscape for assets like tractors and trailers? There are about three times more trailers than tractors in the US. It’s hard for Company A to figure out how to lease or allow Carrier B to tap into some of their empty trailer capacity. Having a third party oversee the process is favorable for both companies. I think, overall, it’s beneficial to have more capacity in the marketplace. What is the nature of that capacity? I’m not sure we can figure that out right now. [9:53] What does this mean for the average broker or 3PL? I think it's positive, based on the brokers I’ve talked to. The closer they are to being able to guarantee capacity, the easier it is for them to work directly with shippers and increasingly larger shippers. [11:36] Do you think the ELD mandate influenced the creation of Powerloop? ELD constrained some driveable hours. The more driveable hours that there are in a day, the better it is for everyone. People say that the ELD mandate is the reason that the cost of freight has been surging. I think that’s part of it, but not all of it. It’s crazy that some drivers can do 2500 miles a week and struggle to make ends meet. Like all innovations, I think having a “customer first” mentality is essential. I’m hopeful that this will benefit drivers the most, but also will have a positive impact for shippers and consumers. [17:28] Do you imagine other freight brokerage companies investing through buying trailers like Uber is? I think it’s possible. One of the challenges right now is that the ability to buy a trailer is really tough. There’s an increasing backlog and the manufacturers are struggling to keep up with the demand. A fair number of asset-heavy carriers out there now also have substantial brokerage businesses. If they don’t have an asset in the right place at the right time, being able to call a friend in the moment is very important. [21:07] What are the benefits of this to the industry? The number one benefit, I’m hoping, is that the number of driveable hours increases. That’s positive for drivers because they will spend a lot less time detained, and for s
Released:
Oct 25, 2018
Format:
Podcast episode
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