1 00:00:07,800 --> 00:00:11,400 Speaker 1: Hi everyone, and welcome to Bloomberg Intelligence Talking Transports Podcast. 2 00:00:11,480 --> 00:00:15,440 Speaker 1: I'm your host, Lee Klasko, senior freight, transportation and logistics 3 00:00:15,440 --> 00:00:19,200 Speaker 1: analysts at Bloomberg Intelligence, Bloomberg's in house research arm of 4 00:00:19,239 --> 00:00:22,840 Speaker 1: almost five hundred analysts and strategists around the globe. Before 5 00:00:22,880 --> 00:00:25,360 Speaker 1: diving in a little public service announcement, and your support 6 00:00:25,480 --> 00:00:28,160 Speaker 1: is instrumental to keep bringing great guests onto the podcast 7 00:00:28,200 --> 00:00:30,560 Speaker 1: like the one we have today. 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We're delighted to have Matt Piatt, the 15 00:00:54,080 --> 00:00:58,959 Speaker 1: CEO of Arrive Logistics affirm he co founded in twenty fourteen. 16 00:00:59,400 --> 00:01:03,120 Speaker 1: Arrive is the thirty sixth largest logistic company in thirteenth 17 00:01:03,160 --> 00:01:07,560 Speaker 1: biggest freight broker according to Transport Topics. Hiatt earned a 18 00:01:07,600 --> 00:01:11,080 Speaker 1: degree in marketing and entrepreneurship from Miami University, so go 19 00:01:11,480 --> 00:01:14,959 Speaker 1: red Hawks. That's right, all right, Well, thanks for joining 20 00:01:15,040 --> 00:01:17,240 Speaker 1: us on the podcast. Matt. It's great to have you here, 21 00:01:17,319 --> 00:01:19,480 Speaker 1: and I know you're all caffeinated and ready to go. 22 00:01:19,680 --> 00:01:22,959 Speaker 1: I'll do my best, all right. Great, So Arrive might 23 00:01:23,000 --> 00:01:25,520 Speaker 1: not be a household name for a lot of folks listening. 24 00:01:25,560 --> 00:01:28,000 Speaker 1: Can you just give a little background about what kind 25 00:01:28,000 --> 00:01:30,080 Speaker 1: of company is, what do you do, how big you are, 26 00:01:30,200 --> 00:01:31,120 Speaker 1: what markets you serve? 27 00:01:31,840 --> 00:01:34,360 Speaker 2: Yeah, yeah, absolutely, So we're freight broker, and so we 28 00:01:34,440 --> 00:01:36,920 Speaker 2: basically sit between people that need a ship products and 29 00:01:36,959 --> 00:01:38,759 Speaker 2: people that own the trucks that you see running down 30 00:01:38,760 --> 00:01:43,240 Speaker 2: the highway. Arrive really specializes in full truckload transportation and 31 00:01:43,280 --> 00:01:45,880 Speaker 2: so I think you said we're the thirteenth largest freight broker, 32 00:01:46,080 --> 00:01:48,520 Speaker 2: but if you look at just truckload freight, so like 33 00:01:48,600 --> 00:01:51,680 Speaker 2: full truckload, we're probably the fifth or sixth largest truckload 34 00:01:51,680 --> 00:01:54,520 Speaker 2: provider in North America in the brokersge industry. And so 35 00:01:54,600 --> 00:01:58,560 Speaker 2: we really focus on dry refrigerated Mexico, Canada over dimensional 36 00:01:59,480 --> 00:02:01,720 Speaker 2: and we have really you know, got into freight management. 37 00:02:01,760 --> 00:02:04,360 Speaker 3: We don't do anything internationally and so. 38 00:02:04,280 --> 00:02:05,880 Speaker 2: That's kind of our bread and butter and we've been 39 00:02:05,920 --> 00:02:08,960 Speaker 2: doing that since we started in twenty fourteen. All of 40 00:02:08,960 --> 00:02:11,919 Speaker 2: our growth has been one hundred percent organic, and we 41 00:02:11,960 --> 00:02:14,240 Speaker 2: obviously think we have a great model what we call 42 00:02:14,280 --> 00:02:17,600 Speaker 2: the Copilot model, which is a perfect balance of operational 43 00:02:17,680 --> 00:02:21,320 Speaker 2: excellence and technology that allows our people to be faster, better, smarter, 44 00:02:21,600 --> 00:02:23,440 Speaker 2: and allow us to connect better with our customers and 45 00:02:23,440 --> 00:02:24,040 Speaker 2: our carriers. 46 00:02:25,240 --> 00:02:27,560 Speaker 1: Yeah, that's pretty impressive, growing so much over the last 47 00:02:27,560 --> 00:02:31,000 Speaker 1: ten years organically. Can you just talk about, you know, 48 00:02:31,080 --> 00:02:33,359 Speaker 1: before arrive, like, what made you Like, did you wake 49 00:02:33,440 --> 00:02:35,200 Speaker 1: up one morning and be like, you know, I wanted 50 00:02:35,200 --> 00:02:37,240 Speaker 1: to start a freight propridge. Yeah. 51 00:02:37,240 --> 00:02:38,799 Speaker 2: So when I was in college, I had a company 52 00:02:38,800 --> 00:02:41,720 Speaker 2: called Miami Muscles, which is an online health supplement business, 53 00:02:41,960 --> 00:02:44,120 Speaker 2: and we had a bunch of our friends from high 54 00:02:44,120 --> 00:02:47,320 Speaker 2: school across different universities selling our products, getting a commission. 55 00:02:47,760 --> 00:02:49,960 Speaker 2: And then I ended up stumbling across this like handheld 56 00:02:50,040 --> 00:02:53,040 Speaker 2: portable drink mixer called the Vortex, which you may or 57 00:02:53,080 --> 00:02:53,639 Speaker 2: may not have seen. 58 00:02:53,680 --> 00:02:55,079 Speaker 3: They've sold them in GNC and other. 59 00:02:54,960 --> 00:02:57,680 Speaker 2: Locations across the country, and we saw about a million 60 00:02:57,680 --> 00:02:59,600 Speaker 2: of those mixers when I was in college, And so 61 00:02:59,600 --> 00:03:01,200 Speaker 2: that was like when I realized I wanted to be 62 00:03:01,200 --> 00:03:03,520 Speaker 2: an entrepreneur. And then I, you know, ended up all 63 00:03:03,520 --> 00:03:05,480 Speaker 2: the mixers became defective. They had to pull them off 64 00:03:05,480 --> 00:03:07,200 Speaker 2: the shelves, and so I didn't know what I was 65 00:03:07,240 --> 00:03:09,560 Speaker 2: going to do next. And so my co founder, Eric Dunagan, 66 00:03:09,600 --> 00:03:11,640 Speaker 2: was a fraternity brother of mine, and he was moving. 67 00:03:11,720 --> 00:03:12,639 Speaker 3: He was up in Chicago. 68 00:03:12,680 --> 00:03:15,200 Speaker 2: He was working at Command Transportation, which was later acquired 69 00:03:15,200 --> 00:03:17,720 Speaker 2: by Echo, and he was doing really, really well, and 70 00:03:17,720 --> 00:03:19,520 Speaker 2: he's like, why don't you come up with move in 71 00:03:19,600 --> 00:03:22,160 Speaker 2: with me and join the logistics industry and we can 72 00:03:22,240 --> 00:03:24,120 Speaker 2: kind of go from there. And so, you know, coming 73 00:03:24,160 --> 00:03:26,440 Speaker 2: out of college and you know, two thousand nine twenty 74 00:03:26,520 --> 00:03:29,440 Speaker 2: ten wasn't the best time and logistics was still hiring, 75 00:03:29,480 --> 00:03:31,920 Speaker 2: and so I joined Command. I was on the customer 76 00:03:32,000 --> 00:03:33,960 Speaker 2: side of the business, and I was there for about 77 00:03:33,960 --> 00:03:35,480 Speaker 2: three and a half years and I learned a lot. 78 00:03:35,720 --> 00:03:37,720 Speaker 3: And then the guys that I work with in college that. 79 00:03:37,720 --> 00:03:40,000 Speaker 2: Had the hell supplement company called Cellucor, which is like 80 00:03:40,080 --> 00:03:43,240 Speaker 2: C four the pre workout, the energy drinks, all those 81 00:03:43,240 --> 00:03:45,760 Speaker 2: different things, they basically reached out and they're like, hey, 82 00:03:45,800 --> 00:03:47,880 Speaker 2: we want to make investments into you know, startups. 83 00:03:47,880 --> 00:03:49,720 Speaker 3: We want to be the seed investor. What do you 84 00:03:49,720 --> 00:03:51,280 Speaker 3: want to do? We loved working with you when you're 85 00:03:51,280 --> 00:03:51,800 Speaker 3: in college. 86 00:03:51,800 --> 00:03:54,600 Speaker 2: And so I was like, look, I'm in logistics, and 87 00:03:54,640 --> 00:03:56,200 Speaker 2: you guys have a freight spend, So why don't we 88 00:03:56,240 --> 00:03:58,640 Speaker 2: just start a business that manages your freight spend and 89 00:03:58,640 --> 00:04:01,000 Speaker 2: then we'll bring all over customers over time and go 90 00:04:01,040 --> 00:04:04,000 Speaker 2: build you know more you know holistic logistics company. And 91 00:04:04,040 --> 00:04:06,040 Speaker 2: so that was the premise of it. You know, obviously 92 00:04:06,120 --> 00:04:07,840 Speaker 2: I wanted to be an entrepreneur. I was in college, 93 00:04:08,480 --> 00:04:10,360 Speaker 2: and I convinced Eric, who was doing really really well 94 00:04:10,400 --> 00:04:12,400 Speaker 2: at Command, to you know, come with me. And you know, 95 00:04:12,440 --> 00:04:14,480 Speaker 2: he had a fiance at the time or family was 96 00:04:14,520 --> 00:04:16,720 Speaker 2: from Chicago, and and so it was a big, you know, 97 00:04:16,800 --> 00:04:18,640 Speaker 2: big leap of faith to you know, quit his job 98 00:04:18,839 --> 00:04:20,280 Speaker 2: as one of the top reps in the company and 99 00:04:20,520 --> 00:04:22,719 Speaker 2: moved down to Austin, Texas and started arriving with me. 100 00:04:22,839 --> 00:04:24,320 Speaker 3: So it's been it's been awesome. 101 00:04:25,000 --> 00:04:27,720 Speaker 1: That's it's a great story. It's you know, it's really 102 00:04:27,760 --> 00:04:29,640 Speaker 1: great to have people on the podcast because it's not 103 00:04:29,720 --> 00:04:31,680 Speaker 1: you know, you just don't hear from you know, people 104 00:04:31,800 --> 00:04:34,320 Speaker 1: that are just in the c suite that move up 105 00:04:34,400 --> 00:04:36,919 Speaker 1: the corporate ladder, but also folks like you that start 106 00:04:36,960 --> 00:04:40,560 Speaker 1: businesses from nothing. And turn them into some into something special, 107 00:04:40,600 --> 00:04:43,400 Speaker 1: which it seems like you're in the process of doing. So, 108 00:04:43,520 --> 00:04:45,760 Speaker 1: what's what's the goal for a arrive. Do you want 109 00:04:45,800 --> 00:04:50,160 Speaker 1: to be bought out? Do you have private equity investors? Uh? 110 00:04:50,520 --> 00:04:53,200 Speaker 1: What's kind of the long term goal? Arrived from a 111 00:04:53,240 --> 00:04:54,240 Speaker 1: strategic standpoint? 112 00:04:54,920 --> 00:04:57,279 Speaker 2: Yeah, So, honestly, what our goal is right now is 113 00:04:57,279 --> 00:04:59,560 Speaker 2: we want to get to the fourth largest truckload broker 114 00:04:59,560 --> 00:05:02,800 Speaker 2: in North am America from a truckload perspective. Obviously, h Robinson, 115 00:05:02,839 --> 00:05:06,000 Speaker 2: TQL and RXO Slash Coyote are are are very large 116 00:05:06,040 --> 00:05:08,400 Speaker 2: at this point and we think in the next two 117 00:05:08,400 --> 00:05:11,240 Speaker 2: to three years will be the fourth largest, moving you know, 118 00:05:11,279 --> 00:05:14,680 Speaker 2: eight to ten thousand full truckloads per day. And a 119 00:05:14,720 --> 00:05:18,040 Speaker 2: big focus for us is to continue to add modal diversification. 120 00:05:18,160 --> 00:05:20,640 Speaker 2: You know, we were really heavy in dry trailer, you know, 121 00:05:20,680 --> 00:05:25,000 Speaker 2: really expanding our drop trailer capabilities are refrigerated, our flatbed Mexico, Canada, 122 00:05:25,680 --> 00:05:27,560 Speaker 2: And so for us, we're very heads down, we know 123 00:05:27,600 --> 00:05:28,640 Speaker 2: what we want to accomplish. 124 00:05:28,640 --> 00:05:29,679 Speaker 3: We want to continue to scale. 125 00:05:29,680 --> 00:05:31,560 Speaker 2: We want to scale the right way, not by just 126 00:05:31,600 --> 00:05:33,800 Speaker 2: throwing money at it, but actually building a real business 127 00:05:33,800 --> 00:05:37,440 Speaker 2: with real relationships and so that's really what we're focused on. Yeah, 128 00:05:37,440 --> 00:05:40,320 Speaker 2: we do have private equity partner, they're a minority partner. 129 00:05:40,800 --> 00:05:43,880 Speaker 2: We've got great, great partners, they have great co investors, 130 00:05:44,080 --> 00:05:46,760 Speaker 2: our early investors are still very active on the board. 131 00:05:47,200 --> 00:05:50,400 Speaker 2: We've got a great growth equity partner. And so everyone 132 00:05:50,440 --> 00:05:53,120 Speaker 2: has a different you know, probably timeline, and so one 133 00:05:53,120 --> 00:05:55,200 Speaker 2: of my major jobs as a CEO is making sure 134 00:05:55,200 --> 00:05:56,800 Speaker 2: that we have the right board structure and the right 135 00:05:56,839 --> 00:05:59,400 Speaker 2: cap table that's there to support you know, the operators 136 00:05:59,400 --> 00:06:01,560 Speaker 2: of the business. And so for us, you know, in 137 00:06:01,600 --> 00:06:03,120 Speaker 2: the next couple of years, you know, maybe there's an 138 00:06:03,120 --> 00:06:05,520 Speaker 2: opportunity for us to clean things up and kind of 139 00:06:05,520 --> 00:06:07,120 Speaker 2: bring in a partner that you know is going to 140 00:06:07,200 --> 00:06:08,880 Speaker 2: be excited about the next you know, five to seven 141 00:06:08,960 --> 00:06:11,719 Speaker 2: year journey. And but right now, as you know, the 142 00:06:11,720 --> 00:06:14,920 Speaker 2: freight market is in the most conducive environment to do 143 00:06:14,960 --> 00:06:18,520 Speaker 2: a transaction or to swap out investors. And so you know, 144 00:06:18,560 --> 00:06:21,080 Speaker 2: for us, we're heads down and we've really improved our 145 00:06:21,120 --> 00:06:22,960 Speaker 2: business over the last thirty six months from a cost 146 00:06:22,960 --> 00:06:25,960 Speaker 2: structure perspective, from a growth perspective, from a hiring, a 147 00:06:26,040 --> 00:06:29,520 Speaker 2: retention a technology and so we're just focused on execution 148 00:06:29,720 --> 00:06:31,560 Speaker 2: and you know, things will happen along the way, and 149 00:06:31,640 --> 00:06:33,520 Speaker 2: so you know, our our long term goal is to 150 00:06:33,560 --> 00:06:35,960 Speaker 2: continue to scale to get that ten billion dollar type number, 151 00:06:36,680 --> 00:06:39,000 Speaker 2: and there's obviously my milestones along the way that we're 152 00:06:39,080 --> 00:06:39,840 Speaker 2: chasing internally. 153 00:06:41,000 --> 00:06:44,159 Speaker 1: Okay, great, You know you mentioned drop drop trailers a 154 00:06:44,160 --> 00:06:47,320 Speaker 1: little bit. So do you guys own equipment or when 155 00:06:47,400 --> 00:06:49,440 Speaker 1: we talk job trailers, can you kind of explain what 156 00:06:49,480 --> 00:06:50,039 Speaker 1: you meant by that. 157 00:06:50,560 --> 00:06:52,599 Speaker 2: Yeah, So, you know, I think that the world is 158 00:06:52,640 --> 00:06:55,880 Speaker 2: getting more asset light, and so like the big asset 159 00:06:55,920 --> 00:06:58,920 Speaker 2: players are starting their brokerages doing power only drop trailer, 160 00:06:59,160 --> 00:07:01,320 Speaker 2: and the brokers are star and to get their own trailers, right, 161 00:07:01,360 --> 00:07:05,039 Speaker 2: and so we have not actually botten any trailers currently. 162 00:07:05,080 --> 00:07:07,960 Speaker 2: And so our carrier capacity is carriers that have between 163 00:07:08,240 --> 00:07:10,640 Speaker 2: seven and one thousand trucks. We typically say twelve and 164 00:07:10,720 --> 00:07:13,680 Speaker 2: a thousand trucks, and most of it our average fleet size, 165 00:07:13,720 --> 00:07:15,600 Speaker 2: you know, fifty to two hundred and fifty trucks, and 166 00:07:15,640 --> 00:07:18,240 Speaker 2: so all of those carriers have trailer pools and so 167 00:07:18,400 --> 00:07:21,000 Speaker 2: we are roughly fifteen percent of our volume. So almost 168 00:07:21,000 --> 00:07:23,440 Speaker 2: seven hundred and fifty plus loads per day are drop 169 00:07:23,480 --> 00:07:27,960 Speaker 2: trailer loads utilizing our core carrier network's capacity, and so 170 00:07:28,120 --> 00:07:29,680 Speaker 2: we are not at a place where we've gone out 171 00:07:29,720 --> 00:07:31,720 Speaker 2: and actually broaden on the trailers. And now, look, when 172 00:07:31,760 --> 00:07:33,400 Speaker 2: we sit down with our customers, that's the number one 173 00:07:33,440 --> 00:07:34,760 Speaker 2: thing they ask us for like when are you guys 174 00:07:34,800 --> 00:07:37,080 Speaker 2: going to get trailers? And so for us, it's it's 175 00:07:37,120 --> 00:07:39,240 Speaker 2: definitely on the roadmap, but it's something that you don't 176 00:07:39,240 --> 00:07:40,920 Speaker 2: want to fail at, right and we don't have that 177 00:07:41,000 --> 00:07:43,880 Speaker 2: operational excellence inside the walls of Arrive. You need to 178 00:07:43,880 --> 00:07:46,200 Speaker 2: get someone that came from the asset world that understands 179 00:07:46,240 --> 00:07:49,720 Speaker 2: trailer utilization, that understands how to manage that trailer pool, 180 00:07:49,920 --> 00:07:52,240 Speaker 2: and that's just something that we don't have as an expertise. 181 00:07:52,440 --> 00:07:53,680 Speaker 2: And so the last thing we want to do is 182 00:07:53,680 --> 00:07:55,520 Speaker 2: go out and get a thousand trailers and you know, 183 00:07:55,560 --> 00:07:58,720 Speaker 2: deploy them into our customers network and then ultimately fail 184 00:07:58,960 --> 00:08:01,520 Speaker 2: and you know, create black eye for the for the business. 185 00:08:01,520 --> 00:08:03,840 Speaker 2: And so it's something we're actively working on, you know, 186 00:08:03,880 --> 00:08:06,440 Speaker 2: looking into twenty twenty five, you know, finding the right team, 187 00:08:06,480 --> 00:08:08,360 Speaker 2: finding the right leader that can go on and do that. 188 00:08:08,600 --> 00:08:12,040 Speaker 2: But even without having trailers, we're really really good at 189 00:08:12,080 --> 00:08:14,600 Speaker 2: getting our carrier networks to drop the trailers for US 190 00:08:14,600 --> 00:08:17,000 Speaker 2: and run those trailer pools. And obviously it doesn't work 191 00:08:17,040 --> 00:08:19,120 Speaker 2: for all customers because some customers like, no, we want 192 00:08:19,120 --> 00:08:20,960 Speaker 2: the arrived you know logo on the trailer. 193 00:08:21,120 --> 00:08:23,000 Speaker 3: But a lot of customers are agnosted. 194 00:08:23,080 --> 00:08:25,120 Speaker 2: They're like, hey, as long as it's one carrier that's 195 00:08:25,200 --> 00:08:27,800 Speaker 2: dropping four arrive and they're willing to service your lanes, 196 00:08:27,960 --> 00:08:29,480 Speaker 2: then we're good. And so we have a lot of 197 00:08:29,560 --> 00:08:31,680 Speaker 2: luck with those types of arrangements. 198 00:08:32,320 --> 00:08:35,120 Speaker 1: You mentioned you wanted to get to the fourth largest 199 00:08:35,480 --> 00:08:39,480 Speaker 1: truckload broker in North America, and you know, you mentioned 200 00:08:39,640 --> 00:08:43,480 Speaker 1: RXO and Coyote, that combination. It seems like, you know, 201 00:08:43,520 --> 00:08:46,920 Speaker 1: we've been talking about consolidation in the industry and it 202 00:08:46,960 --> 00:08:49,760 Speaker 1: actually seems like it's it's actually starting to happen now. 203 00:08:49,840 --> 00:08:52,319 Speaker 1: And then you put that in with technology that might 204 00:08:52,440 --> 00:08:55,320 Speaker 1: push out the smaller brokers that maybe not be as 205 00:08:55,440 --> 00:08:59,800 Speaker 1: tech savvy. Where do you guys believe where we are 206 00:09:00,120 --> 00:09:04,160 Speaker 1: and consolidation and are you or has arrived? Do you 207 00:09:04,200 --> 00:09:07,040 Speaker 1: have any interest in being part of that consalidation or 208 00:09:07,160 --> 00:09:10,360 Speaker 1: is there like some cultural thing at rye that just 209 00:09:10,400 --> 00:09:13,280 Speaker 1: doesn't work if you bought a different someone else. 210 00:09:14,000 --> 00:09:17,480 Speaker 2: Yeah, so everyone's talked about consolidation happening, and I think 211 00:09:17,520 --> 00:09:20,080 Speaker 2: people are surprised that it hasn't happened faster. You know, 212 00:09:20,120 --> 00:09:22,720 Speaker 2: what I what I will say is that technology adoption. 213 00:09:22,880 --> 00:09:24,880 Speaker 2: You know, there's been a lot of new technology entering 214 00:09:24,920 --> 00:09:26,880 Speaker 2: the space over the last five to ten years. You know, 215 00:09:26,920 --> 00:09:29,280 Speaker 2: the adoption from the shipper perspective and from the carrier 216 00:09:29,280 --> 00:09:31,400 Speaker 2: perspective is a little bit slower than you would expect. 217 00:09:31,559 --> 00:09:33,719 Speaker 2: You know, those are investments into like non core cost 218 00:09:33,800 --> 00:09:36,280 Speaker 2: centers for shippers. You know, their job is you know, 219 00:09:36,320 --> 00:09:39,199 Speaker 2: shipping product or you know, manufacturing or retail or whatever. 220 00:09:39,240 --> 00:09:41,720 Speaker 2: And so you know, transportation is sometimes not you know, 221 00:09:41,760 --> 00:09:44,600 Speaker 2: invested in heavily. But you're seeing a really big change there. 222 00:09:44,640 --> 00:09:48,040 Speaker 2: And so the technology to allow us to improve the connectivity, 223 00:09:48,080 --> 00:09:50,800 Speaker 2: which ultimately lowers the cost structure to serve our customers 224 00:09:50,800 --> 00:09:53,439 Speaker 2: and our carriers, which allows us to price more aggressively 225 00:09:53,440 --> 00:09:55,920 Speaker 2: and take more market share, is starting to happen. And 226 00:09:55,960 --> 00:09:57,920 Speaker 2: so what that's going to do is it's really going 227 00:09:58,000 --> 00:09:59,400 Speaker 2: to be like the haves and the have nots. Right, 228 00:09:59,440 --> 00:10:01,840 Speaker 2: the companies that have that cost structure and they have 229 00:10:01,960 --> 00:10:03,880 Speaker 2: the scale, and they have the carrier network, and they 230 00:10:03,880 --> 00:10:06,080 Speaker 2: have all the technology it's going to be really really 231 00:10:06,080 --> 00:10:09,000 Speaker 2: hard to compete on the enterprise level. On the mid 232 00:10:09,000 --> 00:10:11,560 Speaker 2: market level. Now, look, there's a long tail of brokers. 233 00:10:11,559 --> 00:10:14,080 Speaker 2: There's thirty thousand or so brokers, and there's always going 234 00:10:14,120 --> 00:10:15,680 Speaker 2: to be a bunch of small, mom and pop brokers 235 00:10:15,720 --> 00:10:18,280 Speaker 2: with one employee to ten employees to fifteen employees that 236 00:10:18,360 --> 00:10:20,160 Speaker 2: have a you know, one or two customers in the 237 00:10:20,240 --> 00:10:23,400 Speaker 2: local area. And that's awesome. Like, those are great, great businesses, 238 00:10:23,400 --> 00:10:25,800 Speaker 2: great family owned companies. But I do believe that you're 239 00:10:25,800 --> 00:10:28,600 Speaker 2: going to see an acceleration to the top of the 240 00:10:28,600 --> 00:10:30,839 Speaker 2: food PERIODID. You know, the top ten brokers are going 241 00:10:30,880 --> 00:10:32,880 Speaker 2: to take a lot of the market share growth. 242 00:10:33,040 --> 00:10:33,199 Speaker 1: You know. 243 00:10:33,240 --> 00:10:35,360 Speaker 2: Another thing is is like, if you think about COVID, 244 00:10:35,400 --> 00:10:37,280 Speaker 2: things were good for so long in twenty twenty, twenty 245 00:10:37,320 --> 00:10:39,600 Speaker 2: one and twenty two that brokers made a lot of money, 246 00:10:39,600 --> 00:10:42,000 Speaker 2: and they invested into technology, and they grew their head count, 247 00:10:42,000 --> 00:10:43,360 Speaker 2: and everyone was opening a brokerage. 248 00:10:43,360 --> 00:10:47,160 Speaker 3: Every asset had a brokerage, and then you know it obviously. 249 00:10:46,760 --> 00:10:49,080 Speaker 2: Turned in twenty three and twenty four have been really 250 00:10:49,080 --> 00:10:52,040 Speaker 2: really challenging freight environments, and you know, some could argue 251 00:10:52,040 --> 00:10:54,000 Speaker 2: that twenty five is probably going to be equally as challenging. 252 00:10:54,320 --> 00:10:56,679 Speaker 2: And so you're starting to see not people going out 253 00:10:56,720 --> 00:10:59,280 Speaker 2: of business, but you're seeing a lot of headcount reductions. Right, 254 00:10:59,320 --> 00:11:01,280 Speaker 2: So a broker that used to have one hundred employees, 255 00:11:01,320 --> 00:11:03,400 Speaker 2: they're not out of business, but they only have twenty employees, 256 00:11:03,559 --> 00:11:05,360 Speaker 2: and so they're not able to flex up and be 257 00:11:05,360 --> 00:11:07,200 Speaker 2: able to manage the amount of business they used to 258 00:11:07,480 --> 00:11:10,160 Speaker 2: and all that market share is moving up. Additionally, what 259 00:11:10,200 --> 00:11:13,680 Speaker 2: you're seeing is shippers are trying to consolidate their network. Right, Like, 260 00:11:13,679 --> 00:11:15,680 Speaker 2: if you're a shipper and you spend a billion dollars 261 00:11:15,679 --> 00:11:18,200 Speaker 2: on freight and you spend two hundred million of that 262 00:11:18,280 --> 00:11:21,080 Speaker 2: with brokers, you don't want one hundred brokers calling your 263 00:11:21,080 --> 00:11:23,520 Speaker 2: people every single day asking for freight and doing this 264 00:11:23,600 --> 00:11:25,600 Speaker 2: and that. And so what we're seeing is a huge 265 00:11:25,600 --> 00:11:28,120 Speaker 2: consolidation of networks where you know, they typically used to 266 00:11:28,160 --> 00:11:30,320 Speaker 2: work with fifty or sixty or seventy providers and now 267 00:11:30,320 --> 00:11:32,200 Speaker 2: they're like, look, we want to work with five or 268 00:11:32,200 --> 00:11:34,720 Speaker 2: ten providers and go bigger with them. And so that's 269 00:11:34,760 --> 00:11:37,320 Speaker 2: going to further drive the consolidation within the network that 270 00:11:37,400 --> 00:11:39,760 Speaker 2: these big shippers are trying to make their lives easier. 271 00:11:39,960 --> 00:11:42,360 Speaker 2: Have trusted providers, because you know, giving someone a half 272 00:11:42,400 --> 00:11:44,480 Speaker 2: a million dollars in business, you're not going to get 273 00:11:44,480 --> 00:11:46,480 Speaker 2: that top serier at service. But giving your eight to 274 00:11:46,559 --> 00:11:49,240 Speaker 2: ten best brokers twenty million of business, you're going to 275 00:11:49,240 --> 00:11:51,560 Speaker 2: see that loyalty and dedication to the account. And so 276 00:11:51,880 --> 00:11:53,600 Speaker 2: that's one of the big trends that we're seeing within 277 00:11:53,640 --> 00:11:54,960 Speaker 2: our customer portfolio. 278 00:11:55,320 --> 00:12:00,760 Speaker 1: Right, great, So any invention technology a bunch during that point, 279 00:12:00,920 --> 00:12:04,679 Speaker 1: you know, and you mentioned earlier, you know your copilot 280 00:12:04,760 --> 00:12:08,880 Speaker 1: strategy where you kind of balance technology and people. So 281 00:12:08,920 --> 00:12:12,480 Speaker 1: the technology that arrive has is that all built in house? 282 00:12:12,760 --> 00:12:14,840 Speaker 1: Can you talk about like how mud you guys spend 283 00:12:14,840 --> 00:12:16,440 Speaker 1: on technology year? Yeah? 284 00:12:16,480 --> 00:12:17,400 Speaker 3: Yeah, so absolutely. 285 00:12:17,440 --> 00:12:20,480 Speaker 2: So our technology was off the shelf until twenty twenty 286 00:12:20,480 --> 00:12:23,560 Speaker 2: March of twenty twenty with COVID, and it was basically 287 00:12:23,600 --> 00:12:25,920 Speaker 2: an on premise system and we've been working to build 288 00:12:25,920 --> 00:12:28,760 Speaker 2: our own technology starting in twenty seventeen twenty eighteen. But 289 00:12:28,840 --> 00:12:31,280 Speaker 2: when we went remote during COVID, we wouldn't have been 290 00:12:31,280 --> 00:12:32,880 Speaker 2: able to do that with our off the shelf on 291 00:12:32,960 --> 00:12:35,439 Speaker 2: premise system, and so we were able to convert over 292 00:12:35,480 --> 00:12:37,200 Speaker 2: to what was called Accelerate at the time, which has 293 00:12:37,200 --> 00:12:39,800 Speaker 2: now arrived now, and so one hundred percent of our 294 00:12:39,840 --> 00:12:41,880 Speaker 2: technology has been built in house. 295 00:12:42,600 --> 00:12:43,240 Speaker 3: Obviously, we have a. 296 00:12:43,240 --> 00:12:46,880 Speaker 2: Lot of integrations to third party softwares, but everything the 297 00:12:46,880 --> 00:12:48,840 Speaker 2: reps do from a day to day perspective is a 298 00:12:48,880 --> 00:12:51,880 Speaker 2: homegrown system. And then we also have carrier Now, which 299 00:12:51,920 --> 00:12:54,720 Speaker 2: is for our carrier partners. We have shipper now, which 300 00:12:54,720 --> 00:12:57,960 Speaker 2: is for our shipper partners, and so yeah, everything had arrived. 301 00:12:57,960 --> 00:13:01,199 Speaker 2: We want to own the way our ployees see the data, 302 00:13:01,400 --> 00:13:04,079 Speaker 2: get the data, and are able to interact and service 303 00:13:04,160 --> 00:13:06,160 Speaker 2: their customers and their carriers. And so the only way 304 00:13:06,200 --> 00:13:07,400 Speaker 2: to be able to do it the way that we 305 00:13:07,440 --> 00:13:09,280 Speaker 2: want to do it is by being able to build 306 00:13:09,280 --> 00:13:12,040 Speaker 2: it ourselves. And from a tech men perspective, you know, 307 00:13:12,280 --> 00:13:14,840 Speaker 2: it ranges anywhere from twenty five to thirty five million 308 00:13:14,880 --> 00:13:17,360 Speaker 2: a year, and tech development that's just tech development that 309 00:13:17,400 --> 00:13:22,199 Speaker 2: doesn't include infrastructure, subscriptions, phones, et cetera. But from like 310 00:13:22,240 --> 00:13:25,720 Speaker 2: a personnel perspective, that's that's our investment on an annualized basis. 311 00:13:26,160 --> 00:13:29,080 Speaker 2: And most of our tech resources are located in Austin. 312 00:13:29,640 --> 00:13:31,680 Speaker 2: We've got some in Chicago, and then we've got few 313 00:13:31,720 --> 00:13:32,880 Speaker 2: in South America. 314 00:13:32,960 --> 00:13:36,120 Speaker 4: Okay, so could you share like any productivity improvements that 315 00:13:36,160 --> 00:13:38,559 Speaker 4: you've been getting with the tech that you've been building out, 316 00:13:38,600 --> 00:13:41,000 Speaker 4: Like you know, like how many loads per day could 317 00:13:41,040 --> 00:13:43,520 Speaker 4: a typical broker or handle I don't know a couple 318 00:13:43,520 --> 00:13:45,280 Speaker 4: of years ago versus what they're doing today. 319 00:13:45,840 --> 00:13:50,040 Speaker 2: Yeah, So we have our cohorts REP level Productivity cohort, 320 00:13:50,120 --> 00:13:53,240 Speaker 2: and we have twenty thousand plus data points that support 321 00:13:53,240 --> 00:13:56,320 Speaker 2: our cohorts because every single month, the employees add a 322 00:13:56,360 --> 00:13:58,960 Speaker 2: new data point for whatever month they've been at the company. Right, 323 00:13:59,000 --> 00:14:01,040 Speaker 2: So if you've got four hundred customer reps and four 324 00:14:01,120 --> 00:14:03,360 Speaker 2: hundred carrier reps every month, I'm atting eight hundred data 325 00:14:03,360 --> 00:14:06,200 Speaker 2: points to my model, right. And so what we're doing 326 00:14:06,280 --> 00:14:09,319 Speaker 2: is we're saying, Okay, how are the productivity at all 327 00:14:09,400 --> 00:14:12,600 Speaker 2: of the bands of tenure getting more productive over time? 328 00:14:12,880 --> 00:14:15,400 Speaker 2: And so what we have are what's called managed goals. 329 00:14:15,600 --> 00:14:18,480 Speaker 2: And so managed goals are basically the average productivity that 330 00:14:18,480 --> 00:14:20,440 Speaker 2: you should see through a cycle. Because when things are 331 00:14:20,440 --> 00:14:24,600 Speaker 2: good inflationary environment or a deflationary environment, we can outperform 332 00:14:24,640 --> 00:14:27,640 Speaker 2: the managed goal curve. When it's equilibrium like we are, now, 333 00:14:27,760 --> 00:14:30,440 Speaker 2: you're going to underperform. So at the aggregate level, it's 334 00:14:30,440 --> 00:14:32,800 Speaker 2: one hundred percent achievement, if that makes sense. And so 335 00:14:32,920 --> 00:14:35,600 Speaker 2: every single year we're re looking at our managed goal 336 00:14:35,680 --> 00:14:37,840 Speaker 2: curves and saying how much more productive are we getting 337 00:14:37,840 --> 00:14:40,240 Speaker 2: as an organization. A lot of that is technology, a 338 00:14:40,240 --> 00:14:42,880 Speaker 2: lot of that is better processes, better managers, better training, 339 00:14:43,120 --> 00:14:45,800 Speaker 2: better hiring. All those things layer into it. But if 340 00:14:45,840 --> 00:14:49,160 Speaker 2: you think back to like the last cycle, the last cycle, 341 00:14:49,240 --> 00:14:52,040 Speaker 2: if you would use today's manage goal curve, we were 342 00:14:52,080 --> 00:14:54,760 Speaker 2: at like sixty five percent of today's curve. And so 343 00:14:54,840 --> 00:14:57,040 Speaker 2: when you think of it from that perspective, it's north 344 00:14:57,040 --> 00:15:00,000 Speaker 2: of a fifty percent increase in productivity across all tenure bands. 345 00:15:00,520 --> 00:15:02,400 Speaker 2: And the reason that you can't just talk about load 346 00:15:02,400 --> 00:15:04,720 Speaker 2: per day per head because a big driver of load 347 00:15:04,720 --> 00:15:06,880 Speaker 2: per day per head is how many people you hired 348 00:15:06,880 --> 00:15:09,160 Speaker 2: in that calendar year. What percent of your reps are 349 00:15:09,240 --> 00:15:11,080 Speaker 2: under a year, what percent of your reps are under 350 00:15:11,080 --> 00:15:14,080 Speaker 2: two years? Because there's a massive drain on productivity. If 351 00:15:14,120 --> 00:15:15,760 Speaker 2: you say, hey, I'm going to go hire four hundred 352 00:15:15,760 --> 00:15:18,520 Speaker 2: new employees, that's going to drag down the aggregate number, 353 00:15:18,520 --> 00:15:20,240 Speaker 2: and it's going to be a little bit misleading, right, 354 00:15:20,400 --> 00:15:21,800 Speaker 2: And so the way that you always want to look 355 00:15:21,800 --> 00:15:25,160 Speaker 2: at productivity improvements is across the entirety of the tenure bands, 356 00:15:25,200 --> 00:15:26,720 Speaker 2: and how are you lifting it up, How are you 357 00:15:26,720 --> 00:15:28,880 Speaker 2: making a more productive faster, and how are you making 358 00:15:28,920 --> 00:15:31,280 Speaker 2: a more productive through the entirety of the curve. And 359 00:15:31,360 --> 00:15:34,680 Speaker 2: so everything we do within technology is linked back to 360 00:15:34,720 --> 00:15:38,160 Speaker 2: the productivity curves. Whether it's increasing load count, whether it's 361 00:15:38,200 --> 00:15:42,200 Speaker 2: increasing margin, whether it's increasing connectivity. And so those are 362 00:15:42,200 --> 00:15:44,360 Speaker 2: all the ways when we build an ROI analysis, for 363 00:15:44,400 --> 00:15:46,360 Speaker 2: every single thing that goes on our roadmap, it's always 364 00:15:46,360 --> 00:15:47,800 Speaker 2: tied back to one of those key lovers. 365 00:15:48,200 --> 00:15:51,040 Speaker 1: And so I'm just curious. So when you hire a 366 00:15:51,080 --> 00:15:53,840 Speaker 1: new broker, call like an entry level someone that's just 367 00:15:53,920 --> 00:15:55,960 Speaker 1: right out of college or grad school, I don't know 368 00:15:56,200 --> 00:15:59,200 Speaker 1: where you're hiring from, how long does it take them 369 00:15:59,240 --> 00:16:02,440 Speaker 1: to ramp up to get to a certain level of productivity? 370 00:16:02,600 --> 00:16:04,200 Speaker 1: Is it months? Is it years? 371 00:16:05,280 --> 00:16:05,520 Speaker 3: Yeah? 372 00:16:05,560 --> 00:16:09,000 Speaker 2: So, I mean it's an open ended question because it's 373 00:16:09,280 --> 00:16:10,720 Speaker 2: how do you define the productive? 374 00:16:10,800 --> 00:16:10,960 Speaker 3: Right? 375 00:16:11,000 --> 00:16:13,040 Speaker 2: So, right now, they train anywhere from six to nine months, 376 00:16:13,040 --> 00:16:15,200 Speaker 2: depending on what department they go on. And so in 377 00:16:15,240 --> 00:16:17,120 Speaker 2: the first six to nine months, we don't even expect 378 00:16:17,120 --> 00:16:20,000 Speaker 2: them to have customers or have carriers. They're simply learning 379 00:16:20,040 --> 00:16:21,720 Speaker 2: the business because at the end of the day, the 380 00:16:21,760 --> 00:16:24,400 Speaker 2: operations of what we do is what sets us apart. 381 00:16:24,680 --> 00:16:26,680 Speaker 2: Everyone can get on the phone and landed carrier. Everyone 382 00:16:26,720 --> 00:16:28,040 Speaker 2: can get on the phone and land to customer if 383 00:16:28,080 --> 00:16:30,040 Speaker 2: you're willing to try hard enough. How do you take 384 00:16:30,080 --> 00:16:32,440 Speaker 2: it from that first transaction to your one hundred through 385 00:16:32,440 --> 00:16:34,360 Speaker 2: your thousandth to where you're getting ten loads a day, 386 00:16:34,400 --> 00:16:36,960 Speaker 2: twenty loads a day. That is what's really complicated. And 387 00:16:37,000 --> 00:16:40,280 Speaker 2: so we make sure that our employees are operationally excellent 388 00:16:40,360 --> 00:16:40,800 Speaker 2: before we. 389 00:16:40,760 --> 00:16:41,920 Speaker 3: Put them in those positions. 390 00:16:42,200 --> 00:16:44,080 Speaker 2: And so that's a huge investment that we put into 391 00:16:44,120 --> 00:16:45,600 Speaker 2: our people, which is very different than a lot of 392 00:16:45,600 --> 00:16:47,560 Speaker 2: people in the industry. And then so when you look 393 00:16:47,560 --> 00:16:50,400 Speaker 2: at it, it's like from a cumulative break even perspective, 394 00:16:50,680 --> 00:16:53,200 Speaker 2: it's like month eighteen for us, right, And then obviously 395 00:16:53,200 --> 00:16:55,600 Speaker 2: it's very accreative from a P and L perspective on 396 00:16:55,640 --> 00:16:58,920 Speaker 2: a go forward basis. But you know, we're investing pretty 397 00:16:58,920 --> 00:17:01,120 Speaker 2: heavily in the first call eighteen months of a rep. 398 00:17:01,320 --> 00:17:03,320 Speaker 2: And then when a rep probably gets like that twenty 399 00:17:03,360 --> 00:17:06,280 Speaker 2: four to thirty month mark, they're pretty self sufficient, like 400 00:17:06,320 --> 00:17:08,879 Speaker 2: they don't have to ask fifty questions a day. You know, 401 00:17:08,920 --> 00:17:11,119 Speaker 2: maybe it's five questions a day, and so it really 402 00:17:11,200 --> 00:17:13,640 Speaker 2: is a tenure based business, which is why, like people 403 00:17:13,640 --> 00:17:15,440 Speaker 2: don't even understand like how hard it is to build 404 00:17:15,440 --> 00:17:17,840 Speaker 2: an organic business the way that we did, because it's 405 00:17:17,880 --> 00:17:20,680 Speaker 2: all about tenure. Like we're competing against the big companies. 406 00:17:20,720 --> 00:17:22,639 Speaker 2: If you look at their LinkedIn, their average tenures four 407 00:17:22,680 --> 00:17:23,920 Speaker 2: and a half, five and a half, six and a 408 00:17:23,960 --> 00:17:26,960 Speaker 2: half years. Our average tenures two years, right, because we're 409 00:17:27,000 --> 00:17:29,520 Speaker 2: constantly hiring new people and bringing down that average. And 410 00:17:29,560 --> 00:17:33,000 Speaker 2: so as an organization across the board, we're competing against 411 00:17:33,000 --> 00:17:35,480 Speaker 2: people that just have significantly more experience than us, and 412 00:17:35,560 --> 00:17:36,960 Speaker 2: so it makes it challenging. 413 00:17:37,440 --> 00:17:40,119 Speaker 1: And I'm assuming because mentoring is an important part of 414 00:17:40,119 --> 00:17:43,000 Speaker 1: the training process for these new entry level brokers that 415 00:17:43,040 --> 00:17:45,520 Speaker 1: are coming in or you know, wherever they're going to 416 00:17:45,560 --> 00:17:48,920 Speaker 1: give they're on the carrier side, I'm assuming arrive as 417 00:17:48,960 --> 00:17:52,360 Speaker 1: like an in office culture, like are you people virtual 418 00:17:52,480 --> 00:17:55,240 Speaker 1: or you're in the office and you're all working together collaborating, 419 00:17:55,640 --> 00:17:56,760 Speaker 1: So we are. 420 00:17:56,840 --> 00:17:57,800 Speaker 3: In office culture. 421 00:17:57,880 --> 00:18:00,560 Speaker 2: And obviously, you know, some people aren't on board for that, 422 00:18:00,640 --> 00:18:02,960 Speaker 2: but the numbers don't lie, you know, we obviously did 423 00:18:02,960 --> 00:18:05,080 Speaker 2: a great job during twenty twenty twenty one and twenty two, 424 00:18:05,080 --> 00:18:08,119 Speaker 2: when when COVID was there, every broker did right, everyone 425 00:18:08,160 --> 00:18:10,560 Speaker 2: had a good financial outcome. But if you look at 426 00:18:10,600 --> 00:18:12,600 Speaker 2: our cohorts, if you look at the people we hired 427 00:18:12,640 --> 00:18:16,240 Speaker 2: remotely starting in March of twenty twenty through basically the 428 00:18:16,320 --> 00:18:17,800 Speaker 2: end of twenty twenty two. Now we came back to 429 00:18:17,840 --> 00:18:20,680 Speaker 2: the office in twenty two, but very loosely, like way 430 00:18:20,840 --> 00:18:23,640 Speaker 2: more flexibility, right, and so maybe half in the office. 431 00:18:24,160 --> 00:18:26,720 Speaker 2: Almost all of those cohorts have failed, Almost all of 432 00:18:26,800 --> 00:18:28,320 Speaker 2: them are gone out of our business. And so we 433 00:18:28,359 --> 00:18:31,640 Speaker 2: have like this three year lost generation of like all 434 00:18:31,680 --> 00:18:33,439 Speaker 2: of our cohorts that we were hiring because they went 435 00:18:33,480 --> 00:18:37,240 Speaker 2: through this terrible onboarding experience, this terrible training experience, and 436 00:18:37,280 --> 00:18:39,400 Speaker 2: they were just thrown into it and they saw success 437 00:18:39,480 --> 00:18:42,320 Speaker 2: quickly because anyone with a pulse could be successful during 438 00:18:42,359 --> 00:18:44,720 Speaker 2: COVID because they were so much free. And then obviously 439 00:18:44,840 --> 00:18:47,719 Speaker 2: the market changed, they had this realization, oh man, I 440 00:18:47,760 --> 00:18:50,439 Speaker 2: wasn't actually trained, and I don't like this job as 441 00:18:50,480 --> 00:18:52,040 Speaker 2: much as I thought because I'm not as good as 442 00:18:52,080 --> 00:18:54,600 Speaker 2: I should be. And we lost i mean, our attrition 443 00:18:54,720 --> 00:18:57,360 Speaker 2: in twenty one and twenty two, even into twenty three 444 00:18:57,400 --> 00:18:59,440 Speaker 2: because of the twenty two hires was the highest we've 445 00:18:59,440 --> 00:19:02,719 Speaker 2: ever seen across our cohorts. We've really right sized. Our 446 00:19:02,720 --> 00:19:05,879 Speaker 2: attrition is down massively, thirty some percent year over year. 447 00:19:05,920 --> 00:19:08,439 Speaker 2: It's down since from twenty three to twenty four, and 448 00:19:08,480 --> 00:19:09,840 Speaker 2: we think it's going to come down even more in 449 00:19:09,880 --> 00:19:11,879 Speaker 2: twenty five because it comes down to, like all of 450 00:19:11,880 --> 00:19:13,960 Speaker 2: the attrition really happens in that first twelve to twenty 451 00:19:14,000 --> 00:19:16,480 Speaker 2: four months, Right, if someone stays for twenty four months, 452 00:19:16,520 --> 00:19:19,000 Speaker 2: they typically are going to stay and grow their career 453 00:19:19,040 --> 00:19:21,879 Speaker 2: here and arrive and so like during that period of time, 454 00:19:22,240 --> 00:19:26,080 Speaker 2: those people had just bad experiences. They weren't trained, and so, 455 00:19:26,280 --> 00:19:28,240 Speaker 2: like I said, I bet we lost ninety percent of 456 00:19:28,240 --> 00:19:30,760 Speaker 2: those hires. And so I'm not against remote work for 457 00:19:30,760 --> 00:19:32,240 Speaker 2: the right positions, for the right companies. 458 00:19:32,280 --> 00:19:34,120 Speaker 3: I'm not one of those people that thinks that if. 459 00:19:34,040 --> 00:19:35,760 Speaker 2: You have twenty years of experiencing you don't have to 460 00:19:35,800 --> 00:19:38,240 Speaker 2: develop people, that you have to be in an office seat. 461 00:19:38,359 --> 00:19:40,480 Speaker 3: But I am for our business model. 462 00:19:40,520 --> 00:19:43,440 Speaker 2: It's all about young people right out of college, putting 463 00:19:43,480 --> 00:19:45,920 Speaker 2: them in a sales training program and making them successful 464 00:19:45,920 --> 00:19:46,480 Speaker 2: in their career. 465 00:19:46,680 --> 00:19:48,040 Speaker 3: And you cannot do that remotely. 466 00:19:48,280 --> 00:19:52,639 Speaker 1: And then so you know when you're hiring these recent 467 00:19:52,640 --> 00:19:55,159 Speaker 1: college graduates, what are you guys looking for? So if 468 00:19:55,240 --> 00:19:58,200 Speaker 1: there's like, you know, some college kids listening to this podcast, 469 00:19:58,320 --> 00:20:01,200 Speaker 1: I'm huge. I'm huge with the college kids. There's college 470 00:20:01,240 --> 00:20:04,720 Speaker 1: caisses into this podcast, like what kind of like traits 471 00:20:04,760 --> 00:20:05,560 Speaker 1: are you looking for? 472 00:20:06,119 --> 00:20:09,360 Speaker 3: So everything we do at Arrive is very data focused. 473 00:20:09,400 --> 00:20:11,880 Speaker 2: I think you can probably hear when I get excited 474 00:20:11,880 --> 00:20:13,280 Speaker 2: the most is when we talk about data. 475 00:20:14,080 --> 00:20:15,480 Speaker 3: But our hiring is no differently. 476 00:20:15,520 --> 00:20:18,920 Speaker 2: We've profiled every single employee we've ever hired, how they've done, 477 00:20:19,000 --> 00:20:21,439 Speaker 2: where they came from, what their backgrounds are. You know, 478 00:20:21,600 --> 00:20:23,719 Speaker 2: who they trained under, what office they were in, what 479 00:20:23,840 --> 00:20:26,920 Speaker 2: university they went to. And so we've basically built one 480 00:20:26,920 --> 00:20:29,720 Speaker 2: of the biggest databases of like attributes of what we're 481 00:20:29,720 --> 00:20:31,880 Speaker 2: looking for because of what we've seen have worked at Arrive, 482 00:20:32,280 --> 00:20:34,600 Speaker 2: and so we're constantly refining that. And so every role 483 00:20:34,640 --> 00:20:36,800 Speaker 2: is different. Whether you're hiring for customer sales, you're hiring 484 00:20:36,840 --> 00:20:40,040 Speaker 2: for carrier sales, or you're hiring for operations. They're all 485 00:20:40,080 --> 00:20:42,719 Speaker 2: three very different people and a lot of them come 486 00:20:42,760 --> 00:20:45,280 Speaker 2: from different parts of the country, from different universities, with 487 00:20:45,359 --> 00:20:48,080 Speaker 2: different upbringings and so, but at the foundation of what 488 00:20:48,080 --> 00:20:50,920 Speaker 2: you're looking for across everything are people that are hard working, 489 00:20:50,960 --> 00:20:53,760 Speaker 2: money motivated, They have great time management, and they are 490 00:20:53,760 --> 00:20:56,280 Speaker 2: able to deal with rejection and failure and come back 491 00:20:56,320 --> 00:20:58,240 Speaker 2: the next day and when, and so like, this is 492 00:20:58,240 --> 00:21:01,400 Speaker 2: a very competitive business and there are so many people 493 00:21:01,480 --> 00:21:03,680 Speaker 2: that want to be successful at all of our competitors. 494 00:21:03,840 --> 00:21:05,320 Speaker 2: I mean, look at it, and that's just you're not 495 00:21:05,359 --> 00:21:08,160 Speaker 2: just competing against thirty thousand brokers. You're competing against four 496 00:21:08,240 --> 00:21:10,840 Speaker 2: hundred thousand asset based companies that would love to get 497 00:21:10,840 --> 00:21:13,320 Speaker 2: that freight from that enterprise shipper directly, right, And so 498 00:21:13,400 --> 00:21:15,040 Speaker 2: you've got to come in, you've got to be willing 499 00:21:15,040 --> 00:21:17,159 Speaker 2: to work hard, you've got to be super organized, you've 500 00:21:17,160 --> 00:21:18,959 Speaker 2: got to be able to make sure you're allocating your 501 00:21:18,960 --> 00:21:20,600 Speaker 2: time to the right things, you're not wasting it on 502 00:21:20,640 --> 00:21:21,440 Speaker 2: things that don't matter. 503 00:21:21,640 --> 00:21:22,680 Speaker 3: And so those are really. 504 00:21:22,480 --> 00:21:25,640 Speaker 2: The traits that we're looking for at a high level. 505 00:21:25,640 --> 00:21:27,440 Speaker 2: And then there's a lot more detail that gets into 506 00:21:27,520 --> 00:21:29,600 Speaker 2: the weeds that we probably don't have time. 507 00:21:29,440 --> 00:21:33,280 Speaker 1: To talk about, right, And so you know, let's change 508 00:21:33,320 --> 00:21:35,640 Speaker 1: gears a little bit. Let's talk about the trucking market. 509 00:21:36,000 --> 00:21:37,880 Speaker 1: Something that's near and dear to my heart and I'm sure, 510 00:21:38,040 --> 00:21:40,920 Speaker 1: near and dear to yours as well. You know, what 511 00:21:41,280 --> 00:21:44,280 Speaker 1: are you seeing from a from a demand standpoint, from 512 00:21:44,280 --> 00:21:47,680 Speaker 1: a pricing standpoint, what are your expectations heading into peak season? 513 00:21:48,000 --> 00:21:49,639 Speaker 1: Do you think there's going to be a peak season 514 00:21:49,680 --> 00:21:51,840 Speaker 1: this year? What are your thoughts on the market. 515 00:21:52,160 --> 00:21:56,640 Speaker 2: So obviously there's two significant hurricanes in the last two 516 00:21:56,680 --> 00:21:59,400 Speaker 2: or three weeks, right and there's still to be determined 517 00:21:59,440 --> 00:22:01,800 Speaker 2: of what the are going to be of those hurricanes. 518 00:22:02,600 --> 00:22:05,200 Speaker 2: They were substantial, you know, a lot of destruction which 519 00:22:05,200 --> 00:22:08,919 Speaker 2: is extremely unfortunate, which you know, shuts down warehouses, it 520 00:22:08,960 --> 00:22:12,399 Speaker 2: shuts downs manufacturing facilities. It really increases you know, the 521 00:22:12,440 --> 00:22:16,240 Speaker 2: emergency response, and so you know, assume those didn't happen. 522 00:22:16,520 --> 00:22:18,440 Speaker 2: I can tell you what my thoughts are on the market. 523 00:22:18,680 --> 00:22:20,720 Speaker 2: You know, we don't know what the effects are quite 524 00:22:20,840 --> 00:22:23,120 Speaker 2: yet of the hurricane as we're talking to each other 525 00:22:23,200 --> 00:22:24,880 Speaker 2: right now, a couple of days after it hit, right 526 00:22:24,920 --> 00:22:27,800 Speaker 2: And so it's a little bit of like ambiguity right now. 527 00:22:28,280 --> 00:22:30,359 Speaker 2: And what I would tell you is that during COVID, 528 00:22:30,480 --> 00:22:33,920 Speaker 2: a historically high number of carriers entered the market, and 529 00:22:34,200 --> 00:22:37,560 Speaker 2: we were burning that capacity off very slowly because carriers 530 00:22:37,600 --> 00:22:39,720 Speaker 2: made a massive amount of money in twenty twenty, twenty one, 531 00:22:39,800 --> 00:22:44,280 Speaker 2: twenty two. Additionally, they got government assistance through the COVID programs, 532 00:22:44,440 --> 00:22:46,640 Speaker 2: and so they all had pretty strong balance sheets going 533 00:22:46,640 --> 00:22:49,040 Speaker 2: into a down market, and so a lot of people 534 00:22:49,040 --> 00:22:51,280 Speaker 2: were holding on like, hey, it's going to change in 535 00:22:51,280 --> 00:22:53,080 Speaker 2: twenty four. I think everyone's realized that it's not going 536 00:22:53,119 --> 00:22:55,040 Speaker 2: to change in twenty four and so you're starting to 537 00:22:55,040 --> 00:22:57,760 Speaker 2: see the acceleration of capacity leaving the market. But the 538 00:22:57,840 --> 00:22:59,680 Speaker 2: end of the day, the trucking industry is the most 539 00:22:59,720 --> 00:23:02,600 Speaker 2: simple industry in the world to understand it's supply and demand. 540 00:23:02,880 --> 00:23:04,040 Speaker 2: And at the end of the day, we can talk 541 00:23:04,040 --> 00:23:05,840 Speaker 2: about a recession, we can, you know not, but like 542 00:23:05,920 --> 00:23:07,840 Speaker 2: durable goods is the only thing that you ship on 543 00:23:07,880 --> 00:23:10,480 Speaker 2: a truck. You don't ship services, right, you don't ship flights, 544 00:23:10,480 --> 00:23:12,840 Speaker 2: you don't ship those things, right, And so like durable 545 00:23:12,880 --> 00:23:16,280 Speaker 2: good demand is pretty consistent even in a recessionary environment, 546 00:23:16,320 --> 00:23:18,800 Speaker 2: and so we can really understand what demand's going to 547 00:23:18,840 --> 00:23:21,120 Speaker 2: look like. It really is how much capacity is there 548 00:23:21,119 --> 00:23:23,080 Speaker 2: in the market. And so if there's continually to be 549 00:23:23,160 --> 00:23:25,879 Speaker 2: too much capacity, it's really hard for the market to 550 00:23:25,920 --> 00:23:28,719 Speaker 2: be more advantageous for the carriers and the brokers. It 551 00:23:28,720 --> 00:23:31,280 Speaker 2: continues to be a shipper's market right now. What you're 552 00:23:31,280 --> 00:23:33,520 Speaker 2: seeing as shippers are continually bidding it down. We're going 553 00:23:33,600 --> 00:23:36,080 Speaker 2: to our third bid cycle in a down market, which 554 00:23:36,119 --> 00:23:37,960 Speaker 2: means rates are probably going to get as close to 555 00:23:37,960 --> 00:23:40,320 Speaker 2: the bottom as humanly possible. And so that's going to 556 00:23:40,320 --> 00:23:42,480 Speaker 2: put the market in a position that if there is 557 00:23:42,520 --> 00:23:45,280 Speaker 2: some type of event, some type of volatility, you know, 558 00:23:45,600 --> 00:23:46,440 Speaker 2: it will create the. 559 00:23:46,400 --> 00:23:48,200 Speaker 3: Opportunity for rates to be inflationary. 560 00:23:48,280 --> 00:23:51,160 Speaker 2: But you know, I'm not in the business of predicting 561 00:23:51,200 --> 00:23:53,760 Speaker 2: active god, I'm not in the business of predicting pandemics 562 00:23:53,840 --> 00:23:56,800 Speaker 2: or things of that nature. And so from our perspective, 563 00:23:57,000 --> 00:23:58,960 Speaker 2: twenty twenty five is going to look very similar to 564 00:23:58,960 --> 00:24:01,880 Speaker 2: twenty twenty four. I think you're going to see contract 565 00:24:01,960 --> 00:24:04,240 Speaker 2: rates stay pretty flat on a year over your basis. 566 00:24:04,400 --> 00:24:06,160 Speaker 2: I think you're going to see spot rates up five 567 00:24:06,200 --> 00:24:08,840 Speaker 2: to seven percent on a year over year basis. I 568 00:24:08,840 --> 00:24:10,680 Speaker 2: think you're going to see the spot to contract gap, 569 00:24:10,720 --> 00:24:12,520 Speaker 2: which is really important, like how much is the average 570 00:24:12,520 --> 00:24:14,520 Speaker 2: contract rate versus how much is the average spot rate 571 00:24:14,960 --> 00:24:17,400 Speaker 2: that right now is still at like where it used 572 00:24:17,440 --> 00:24:19,280 Speaker 2: to be at the top of the market, like in 573 00:24:19,600 --> 00:24:22,080 Speaker 2: previous cycles, it's like in the mid thirty cents right now. 574 00:24:22,240 --> 00:24:24,399 Speaker 2: It was as high as like forty five to fifty cents, 575 00:24:24,520 --> 00:24:26,600 Speaker 2: you know, at the peak of it. And so we're 576 00:24:26,640 --> 00:24:29,200 Speaker 2: still in a place where the spot to contract gap 577 00:24:29,240 --> 00:24:31,680 Speaker 2: is pretty sizable, which means if there is a disruption, 578 00:24:31,920 --> 00:24:34,840 Speaker 2: a hurricane like what we had, it could really increase 579 00:24:34,840 --> 00:24:37,639 Speaker 2: spot rates temporarily, but it's probably not going to be 580 00:24:37,640 --> 00:24:40,960 Speaker 2: a big enough disruption to inverse out the supply and 581 00:24:41,000 --> 00:24:43,399 Speaker 2: demand issue that we have right now. And so you know, 582 00:24:43,440 --> 00:24:46,720 Speaker 2: I still in a summary, I still think we're oversupplied slightly, 583 00:24:47,560 --> 00:24:49,480 Speaker 2: and I think you're going to continue to see a 584 00:24:49,600 --> 00:24:51,920 Speaker 2: challenging for environment. I do think that twenty five will 585 00:24:51,960 --> 00:24:54,680 Speaker 2: be better than twenty four from like a margin percentage 586 00:24:54,680 --> 00:24:56,800 Speaker 2: and a margin per load, but very slightly. 587 00:24:57,520 --> 00:24:59,280 Speaker 3: And but there are growth opportunities. 588 00:24:59,320 --> 00:25:01,240 Speaker 2: And so for a rad of like you know, we 589 00:25:01,240 --> 00:25:03,200 Speaker 2: we kind of like we don't care where the market 590 00:25:03,240 --> 00:25:03,480 Speaker 2: is yet. 591 00:25:03,520 --> 00:25:04,760 Speaker 3: Yeah, it's great when it's infla shary. 592 00:25:04,840 --> 00:25:06,399 Speaker 2: Yes, it's great when it's inflay shary from like a 593 00:25:06,440 --> 00:25:09,879 Speaker 2: spread proload perspective, But these environments, like you know, we 594 00:25:09,880 --> 00:25:12,760 Speaker 2: always say, never waste a good crisis. There's a lot 595 00:25:12,760 --> 00:25:14,959 Speaker 2: of opportunity to get better as an organization during these 596 00:25:15,000 --> 00:25:17,720 Speaker 2: challenging environments. Because if it's challenging for us, and we've 597 00:25:17,720 --> 00:25:19,600 Speaker 2: got the balance sheet that we have and the technology 598 00:25:19,600 --> 00:25:21,879 Speaker 2: we have and the people we have, it's really challenging 599 00:25:21,880 --> 00:25:23,960 Speaker 2: for the bottom twenty nine thousand, nine hundred brokers. So 600 00:25:24,440 --> 00:25:26,560 Speaker 2: there's a lot of opportunity for us to take market share, 601 00:25:26,560 --> 00:25:30,119 Speaker 2: which what's we're doing right now? Right? 602 00:25:30,240 --> 00:25:34,440 Speaker 1: Okay, that's a great perspective. You mentioned, you know, there's 603 00:25:34,440 --> 00:25:39,199 Speaker 1: too much supply in the market and the fact that 604 00:25:39,280 --> 00:25:41,960 Speaker 1: you know, these two hurricanes, it's kind of unknown right now, 605 00:25:42,000 --> 00:25:45,720 Speaker 1: so you're not seeing that, you know, surge and demand 606 00:25:45,800 --> 00:25:48,960 Speaker 1: for relief efforts of expedited freight goat going down to 607 00:25:49,040 --> 00:25:52,239 Speaker 1: the affected areas. That's not something that you know, you 608 00:25:52,240 --> 00:25:53,240 Speaker 1: guys typically see. 609 00:25:53,640 --> 00:25:56,600 Speaker 2: No, No, we're seeing that across you know, the major players. 610 00:25:57,600 --> 00:25:59,359 Speaker 2: You know, obviously we don't move one hundred percent of it, 611 00:25:59,400 --> 00:26:01,840 Speaker 2: but we're only seeing it. We're getting the email requests 612 00:26:01,880 --> 00:26:05,280 Speaker 2: multiple times a day across you know, big retailers that 613 00:26:05,359 --> 00:26:07,720 Speaker 2: you know do disaster relief, and then obviously the government 614 00:26:07,800 --> 00:26:11,000 Speaker 2: organizations that we work with as well. But at the 615 00:26:11,040 --> 00:26:14,040 Speaker 2: same time, there's still a lack of freight coming out 616 00:26:14,080 --> 00:26:17,040 Speaker 2: of those areas, and so like from a total demand perspective, 617 00:26:17,440 --> 00:26:19,639 Speaker 2: you know, you can look at tender rejections. It's up 618 00:26:19,680 --> 00:26:21,679 Speaker 2: a little bit. It's up until like five percent, right, 619 00:26:21,760 --> 00:26:24,399 Speaker 2: it's not up to ten percent tender rejections. Typically for 620 00:26:24,520 --> 00:26:27,200 Speaker 2: rates to get super inflationary need to stay above ten 621 00:26:27,240 --> 00:26:29,840 Speaker 2: percent for a period of time, and we're just not 622 00:26:29,960 --> 00:26:30,400 Speaker 2: there yet. 623 00:26:30,400 --> 00:26:32,600 Speaker 3: So, like I said, I'm kind of waiting and seeing 624 00:26:32,600 --> 00:26:33,240 Speaker 3: what's going on. 625 00:26:33,320 --> 00:26:35,879 Speaker 2: You know, I don't want to make any predictions with 626 00:26:36,359 --> 00:26:39,240 Speaker 2: where we are in the information cycle related to this 627 00:26:39,320 --> 00:26:40,040 Speaker 2: hurricane yet. 628 00:26:40,440 --> 00:26:41,600 Speaker 3: I think it's to be determined. 629 00:26:41,600 --> 00:26:43,560 Speaker 2: And then in terms of peak season you asked earlier, 630 00:26:44,480 --> 00:26:46,359 Speaker 2: you know, I think that the shippers did a pretty 631 00:26:46,359 --> 00:26:48,720 Speaker 2: big pull pull forward the amount of containers that came 632 00:26:48,760 --> 00:26:52,960 Speaker 2: in during August. In September. I think shippers were preparing 633 00:26:53,640 --> 00:26:55,159 Speaker 2: for a port strike. I think they were getting their 634 00:26:55,200 --> 00:26:57,960 Speaker 2: inventories where they needed to be. So, you know, I'm 635 00:26:57,960 --> 00:27:02,679 Speaker 2: not predicting a massive, massive peak season, but you know, 636 00:27:02,720 --> 00:27:06,880 Speaker 2: I could be wrong, especially with the volatility of the weather, right, 637 00:27:07,000 --> 00:27:09,879 Speaker 2: you know, continue weather disruption is going to create volatility, 638 00:27:10,080 --> 00:27:11,840 Speaker 2: even if it's not a big peak season from a 639 00:27:11,960 --> 00:27:13,920 Speaker 2: from a number of load perspective, right, it's going to 640 00:27:14,000 --> 00:27:16,480 Speaker 2: just complicate the market. So you know, as of right now, 641 00:27:16,600 --> 00:27:18,840 Speaker 2: like if there wasn't those hurricanes, I would have not 642 00:27:18,880 --> 00:27:20,359 Speaker 2: been expecting a massive peak season. 643 00:27:20,800 --> 00:27:24,840 Speaker 1: So did you when you saw the port strikes, did you, 644 00:27:24,840 --> 00:27:30,240 Speaker 1: guys see any changes in demand around the East Coast 645 00:27:30,280 --> 00:27:33,399 Speaker 1: and Gulf Coast regions? Was there like like people panicking. 646 00:27:33,520 --> 00:27:35,040 Speaker 1: I got to get stuff out of the ports just 647 00:27:35,040 --> 00:27:36,200 Speaker 1: before they start striking. 648 00:27:36,920 --> 00:27:38,760 Speaker 3: So we do a little bit of draage. 649 00:27:39,520 --> 00:27:42,040 Speaker 2: We don't do a whole lot at the port level, 650 00:27:42,640 --> 00:27:44,800 Speaker 2: so we didn't see a whole lot honestly, And honestly, 651 00:27:44,840 --> 00:27:47,280 Speaker 2: I think it would have taken a couple of weeks 652 00:27:47,280 --> 00:27:49,200 Speaker 2: for us to see, like, you know, shippers behavior. I 653 00:27:49,240 --> 00:27:51,560 Speaker 2: think a lot of shippers were standing by waiting to 654 00:27:51,600 --> 00:27:54,480 Speaker 2: see what was going to happen, and so they weren't diverting, 655 00:27:54,560 --> 00:27:56,600 Speaker 2: you know, product to LA. You know, if it would 656 00:27:56,640 --> 00:27:58,120 Speaker 2: have lasted a couple of weeks, I think you would 657 00:27:58,160 --> 00:27:59,760 Speaker 2: have seen a lot of freight diverts to the West Coast, 658 00:27:59,800 --> 00:28:02,640 Speaker 2: which would have created a lot of long haul expedited opportunities. 659 00:28:02,800 --> 00:28:04,879 Speaker 2: But obviously the port strike didn't last long enough for 660 00:28:04,920 --> 00:28:06,440 Speaker 2: that to happen, and I think a lot of the 661 00:28:06,480 --> 00:28:09,359 Speaker 2: shippers were probably like sitting around waiting for that first week, saying, Okay, 662 00:28:09,440 --> 00:28:10,760 Speaker 2: let's let's see where this goes. 663 00:28:11,480 --> 00:28:11,639 Speaker 1: You know. 664 00:28:11,680 --> 00:28:14,919 Speaker 2: We definitely saw some changes, but nothing like dramatically. You know, 665 00:28:14,960 --> 00:28:16,760 Speaker 2: some of the export business that used to go to 666 00:28:16,840 --> 00:28:19,359 Speaker 2: those ports, we definitely saw them diverting to other ports. 667 00:28:20,200 --> 00:28:22,000 Speaker 2: The other one that we saw are like carriers that 668 00:28:22,080 --> 00:28:24,119 Speaker 2: do drayage on the wet on the East Coast started 669 00:28:24,160 --> 00:28:26,359 Speaker 2: reaching out saying, hey, we'll do over the road and 670 00:28:26,400 --> 00:28:28,960 Speaker 2: so we saw little things like that, but nothing major. 671 00:28:29,440 --> 00:28:32,439 Speaker 1: Okay, So, you know, I hear a lot about you know, 672 00:28:32,560 --> 00:28:37,880 Speaker 1: fraud within the trucking industry. How are you guys battling that? 673 00:28:38,320 --> 00:28:38,840 Speaker 1: At arrive? 674 00:28:39,920 --> 00:28:41,080 Speaker 3: So if you would have gone. 675 00:28:40,920 --> 00:28:43,480 Speaker 2: And talked to customers back in twenty twenty two, every 676 00:28:43,480 --> 00:28:45,000 Speaker 2: single customer would be like, how do you get me 677 00:28:45,040 --> 00:28:47,320 Speaker 2: more trailers? If you go to talk to customers now, 678 00:28:47,400 --> 00:28:49,760 Speaker 2: they're saying, how are you protecting against fraud? It is 679 00:28:49,880 --> 00:28:53,640 Speaker 2: absolutely the hottest topic in the industry. We have an 680 00:28:53,760 --> 00:28:56,880 Speaker 2: unbelievable compliance team led by Kenneth Hall and he is 681 00:28:57,520 --> 00:28:59,760 Speaker 2: all over it, and so it really starts with our 682 00:28:59,840 --> 00:29:03,960 Speaker 2: end internal processes. Right, we can't prevent everything in the world. Right, 683 00:29:04,000 --> 00:29:06,320 Speaker 2: our job is to do everything we can, and the 684 00:29:06,360 --> 00:29:09,040 Speaker 2: shippers also can contribute and do things on their end 685 00:29:09,080 --> 00:29:11,400 Speaker 2: as well, and so we as a team need to 686 00:29:11,440 --> 00:29:13,520 Speaker 2: be doing all these necessary steps and it adds a 687 00:29:13,560 --> 00:29:15,840 Speaker 2: little bit of complexity. It definitely can take out some 688 00:29:15,920 --> 00:29:18,440 Speaker 2: of the capacity, but it really comes down to, like, hey, 689 00:29:18,480 --> 00:29:20,080 Speaker 2: we won't work with carriers that have been in business 690 00:29:20,120 --> 00:29:21,640 Speaker 2: for less than a year. We won't work with carriers 691 00:29:21,640 --> 00:29:23,960 Speaker 2: that haven't had inspections. We won't give a carrier a 692 00:29:24,000 --> 00:29:26,560 Speaker 2: multi state run that hasn't had inspections in those states 693 00:29:26,560 --> 00:29:29,360 Speaker 2: because we don't think it's legitimate. There's so many different 694 00:29:29,400 --> 00:29:31,760 Speaker 2: things we're doing as an organization, literally, like twenty plus 695 00:29:31,800 --> 00:29:34,480 Speaker 2: things to try to prevent that. Whether it's auto tracking, 696 00:29:34,480 --> 00:29:36,920 Speaker 2: whether it's alerts within our system when a carrier goes 697 00:29:36,960 --> 00:29:38,880 Speaker 2: out of route that they shouldn't be going out of, 698 00:29:39,040 --> 00:29:42,040 Speaker 2: or if it's a high value value lane, making sure 699 00:29:42,080 --> 00:29:44,520 Speaker 2: the driver's driving two hundred and fifty miles before they 700 00:29:44,520 --> 00:29:45,880 Speaker 2: make their first stop, making sure. 701 00:29:45,720 --> 00:29:48,320 Speaker 3: They're fueled up before the pickup location, and. 702 00:29:48,280 --> 00:29:50,000 Speaker 2: So there's a lot of little things that we're doing 703 00:29:50,000 --> 00:29:52,520 Speaker 2: as an organization to try to be a leader in 704 00:29:53,480 --> 00:29:56,360 Speaker 2: that world of high value and obviously fraud and theft. 705 00:29:57,040 --> 00:30:00,000 Speaker 2: And so we obviously work with Reliance Partners, which is 706 00:30:00,080 --> 00:30:02,760 Speaker 2: one of the largest insurance providers to the brokerage community, 707 00:30:03,160 --> 00:30:05,000 Speaker 2: and I think they've been on record and said that 708 00:30:05,040 --> 00:30:07,120 Speaker 2: we have one of the lowest UH lost runs of 709 00:30:07,160 --> 00:30:09,920 Speaker 2: any broker in the space. And so you know, we're 710 00:30:09,960 --> 00:30:13,200 Speaker 2: not we're not perfect. We've definitely had fraudulent we've definitely 711 00:30:13,200 --> 00:30:17,440 Speaker 2: had pillaged loads, but we from a percentage perspective, we 712 00:30:17,480 --> 00:30:19,760 Speaker 2: feel like we're top of class and we're making those 713 00:30:19,800 --> 00:30:23,560 Speaker 2: necessary steps. And it really is a time investment internally 714 00:30:23,840 --> 00:30:26,080 Speaker 2: to dot all your eyes and top across your t's 715 00:30:26,160 --> 00:30:28,200 Speaker 2: every single time you work with the carrier. 716 00:30:28,880 --> 00:30:32,200 Speaker 1: And what in your experience, whether it's an arrive or 717 00:30:32,280 --> 00:30:35,400 Speaker 1: just the industry in general, what's the most common fraud 718 00:30:35,440 --> 00:30:37,760 Speaker 1: that you're that the the industry is experiencing. 719 00:30:38,920 --> 00:30:39,840 Speaker 3: So there's a lot. 720 00:30:39,880 --> 00:30:41,880 Speaker 2: So if there's high value, it's people that are watching 721 00:30:41,880 --> 00:30:43,880 Speaker 2: the high value trucks leave the facilities and then they're 722 00:30:43,880 --> 00:30:45,440 Speaker 2: going to a truck stop and they're pulling the doors 723 00:30:45,480 --> 00:30:47,200 Speaker 2: off and they're pulling a powder two OLF like they 724 00:30:47,240 --> 00:30:49,800 Speaker 2: can that that happens all the time. The ones that's 725 00:30:49,840 --> 00:30:52,880 Speaker 2: really unique right now and it's really hard to fight 726 00:30:53,600 --> 00:30:57,600 Speaker 2: is the scammers are buying mcs that are legitimate mcs. 727 00:30:57,720 --> 00:30:59,480 Speaker 2: And so let's just say you've got three trucks and 728 00:30:59,480 --> 00:31:01,880 Speaker 2: you've been a business for thirty or ten years, and 729 00:31:01,920 --> 00:31:03,480 Speaker 2: you're about to go out of business, and someone gives 730 00:31:03,480 --> 00:31:05,600 Speaker 2: you five thousand bucks and says, hey, give me your 731 00:31:05,640 --> 00:31:07,880 Speaker 2: email and your phone number for the next week while 732 00:31:07,880 --> 00:31:10,200 Speaker 2: I do the transition, and then they literally can go 733 00:31:10,200 --> 00:31:11,840 Speaker 2: pick up a bunch of loads, steel them and shut 734 00:31:11,840 --> 00:31:14,440 Speaker 2: the company down and never find them ever again. And 735 00:31:14,480 --> 00:31:16,840 Speaker 2: so those are the ones that are really really challenging 736 00:31:16,880 --> 00:31:21,280 Speaker 2: to fight against. And so those are where the fraudulent 737 00:31:21,320 --> 00:31:23,920 Speaker 2: actors are probably getting the brokers at the highest level. 738 00:31:24,360 --> 00:31:26,240 Speaker 2: And so once again it goes down to kind of 739 00:31:26,280 --> 00:31:29,080 Speaker 2: our core carrier network, Like we work with carriers that 740 00:31:29,120 --> 00:31:31,240 Speaker 2: are between that twelve to nine hundred and ninety nine. 741 00:31:31,480 --> 00:31:33,520 Speaker 2: A lot of this fraud is happening on the smaller 742 00:31:33,600 --> 00:31:36,200 Speaker 2: fleet size, and so we're trying to make sure that 743 00:31:36,360 --> 00:31:38,040 Speaker 2: you know, those carriers aren't going out of business and 744 00:31:38,040 --> 00:31:39,960 Speaker 2: selling their MC to someone that you know is going 745 00:31:40,040 --> 00:31:43,680 Speaker 2: to be doing nefarious acts and so you can't be perfect, 746 00:31:43,680 --> 00:31:46,040 Speaker 2: but you know, we do everything we can, all right. 747 00:31:46,120 --> 00:31:49,280 Speaker 1: Do you think there's anything the industry can do to 748 00:31:49,400 --> 00:31:52,240 Speaker 1: kind of because it's, like you said earlier, like it's 749 00:31:52,280 --> 00:31:54,120 Speaker 1: what shippers are talking about all the time, you and 750 00:31:54,160 --> 00:31:56,360 Speaker 1: I are talking about it. So it seems to be 751 00:31:56,840 --> 00:32:00,800 Speaker 1: a real mark for brokers. So is there something that 752 00:32:00,800 --> 00:32:03,640 Speaker 1: the broker industry can do or regulators can can help 753 00:32:03,640 --> 00:32:03,920 Speaker 1: out with? 754 00:32:05,040 --> 00:32:07,040 Speaker 2: You know, I think it's a it's a team effort 755 00:32:07,040 --> 00:32:10,000 Speaker 2: between the brokers, the shippers, and you know law enforcement. 756 00:32:10,120 --> 00:32:11,680 Speaker 2: Right at the end of the day, when when we 757 00:32:11,800 --> 00:32:14,160 Speaker 2: call law enforcement, they have to you know, be responsive, 758 00:32:14,200 --> 00:32:16,120 Speaker 2: they have to care, they have to be present. You know, 759 00:32:16,240 --> 00:32:19,200 Speaker 2: Overhaul is a company that's got really great relationships with 760 00:32:19,200 --> 00:32:21,240 Speaker 2: with law enforcement. So if you're using Overhaul as a 761 00:32:21,280 --> 00:32:23,560 Speaker 2: tracking service, if you have high value freight, you know, 762 00:32:23,600 --> 00:32:26,160 Speaker 2: their recovery rate is like nearly one hundred percent, right, 763 00:32:26,200 --> 00:32:28,120 Speaker 2: and that's because they know who to call they can 764 00:32:28,160 --> 00:32:31,320 Speaker 2: get the action going from a from a shipper perspective, 765 00:32:31,360 --> 00:32:33,800 Speaker 2: you know, obviously making sure you're working with legitimate brokers, 766 00:32:33,800 --> 00:32:36,400 Speaker 2: making sure that you know, we're validating pickup numbers. I 767 00:32:36,400 --> 00:32:38,600 Speaker 2: mean even going as far as validating, hey, broker, what's 768 00:32:38,600 --> 00:32:42,040 Speaker 2: the MC of this of this carrier and just checking 769 00:32:42,080 --> 00:32:43,800 Speaker 2: at the gate, right, because a lot of the fraud 770 00:32:43,880 --> 00:32:46,400 Speaker 2: happens where it's getting double broker, right, it's going to 771 00:32:46,440 --> 00:32:48,880 Speaker 2: an asset based carrier that's then brokering it and stealing 772 00:32:48,880 --> 00:32:51,280 Speaker 2: the load. And so there's a lot of things that 773 00:32:51,320 --> 00:32:52,760 Speaker 2: you can do. There's things that you can do around 774 00:32:52,760 --> 00:32:55,160 Speaker 2: seals on the on the doors, not just like on 775 00:32:55,200 --> 00:32:56,640 Speaker 2: the on the side, because a lot of these people 776 00:32:56,640 --> 00:32:59,200 Speaker 2: are taking the doors clean off the trailer, taking the 777 00:32:59,200 --> 00:33:01,120 Speaker 2: product off, and then putting the doors clean back on, 778 00:33:01,320 --> 00:33:03,440 Speaker 2: so the seals never even getting broken. And so there's 779 00:33:03,480 --> 00:33:05,200 Speaker 2: just a lot of little things that we can do, 780 00:33:05,520 --> 00:33:07,560 Speaker 2: but like I said, it requires a team effort. I 781 00:33:07,560 --> 00:33:10,360 Speaker 2: mean the most expensive but highest you know value is 782 00:33:10,600 --> 00:33:13,080 Speaker 2: you can have tracking devices on one of the palettes 783 00:33:13,120 --> 00:33:15,960 Speaker 2: within the within the trailer, right, but that costs you know, 784 00:33:16,040 --> 00:33:18,600 Speaker 2: forty to fifty sixty seventy dollars a shipment, and so 785 00:33:18,680 --> 00:33:20,760 Speaker 2: really it just comes down to like what level of 786 00:33:20,800 --> 00:33:22,280 Speaker 2: investment are people willing to make? 787 00:33:23,840 --> 00:33:26,240 Speaker 1: Is is there anything else you know, outside of fraud 788 00:33:26,240 --> 00:33:29,640 Speaker 1: that's facing the industry that you view as a challenge 789 00:33:30,240 --> 00:33:32,800 Speaker 1: for the brokerage industry and derive. 790 00:33:34,600 --> 00:33:34,800 Speaker 3: Yeah. 791 00:33:34,800 --> 00:33:36,040 Speaker 2: I mean, at the end of the day, it's a 792 00:33:36,040 --> 00:33:38,440 Speaker 2: people business. And obviously we're going to continue to build 793 00:33:38,480 --> 00:33:41,720 Speaker 2: great technology. Our technologies can continue to lift our productivity curve. 794 00:33:42,040 --> 00:33:45,280 Speaker 2: But you know, for me, it's is the next generation 795 00:33:45,440 --> 00:33:47,520 Speaker 2: wanting to come out as college and be in sales. 796 00:33:47,560 --> 00:33:48,800 Speaker 3: Do they want to be in the office? 797 00:33:48,840 --> 00:33:51,200 Speaker 2: Do they want to you know, work the hours that 798 00:33:51,240 --> 00:33:53,680 Speaker 2: it takes to work to be successful. You know, culturally 799 00:33:53,680 --> 00:33:56,200 Speaker 2: we're seeing you know, pretty large shifts of college kids 800 00:33:56,240 --> 00:33:58,200 Speaker 2: coming out, and so, you know, are we able to 801 00:33:58,240 --> 00:34:01,480 Speaker 2: continue across the entirety of the industry, continue to fill 802 00:34:01,520 --> 00:34:04,080 Speaker 2: our seats with people that are super hungry and super 803 00:34:04,120 --> 00:34:06,160 Speaker 2: willing to you know, do a very blue collar business, 804 00:34:06,200 --> 00:34:07,480 Speaker 2: right like trucking at the end of the day is 805 00:34:07,520 --> 00:34:09,839 Speaker 2: one of the most blue collar industries there are. And 806 00:34:09,920 --> 00:34:12,319 Speaker 2: so making sure we're attracting the right talent, making sure 807 00:34:12,360 --> 00:34:15,120 Speaker 2: we're showing people that it's an unbelievable place to build 808 00:34:15,120 --> 00:34:17,120 Speaker 2: a career where you can have a lot of success 809 00:34:17,160 --> 00:34:18,960 Speaker 2: and you can have a family and you know, do 810 00:34:19,040 --> 00:34:20,680 Speaker 2: all the things that you want to do and have 811 00:34:20,760 --> 00:34:22,319 Speaker 2: a great career of. 812 00:34:22,239 --> 00:34:24,000 Speaker 3: Brokers whether it's arrived or wherever they go. 813 00:34:24,160 --> 00:34:26,840 Speaker 2: And so for us, it's about continuing to hire the 814 00:34:26,920 --> 00:34:28,919 Speaker 2: right people, continue to build our team the right way. 815 00:34:29,480 --> 00:34:31,719 Speaker 3: And for us, it's an incremental load business, right. 816 00:34:31,800 --> 00:34:33,799 Speaker 2: So like, if you don't have that drive where the 817 00:34:33,840 --> 00:34:36,080 Speaker 2: average person used to go, take that incremental one load, 818 00:34:36,280 --> 00:34:38,440 Speaker 2: that is where all the ebadeh falls to the bottom line. 819 00:34:38,440 --> 00:34:40,239 Speaker 2: If you've got two thousand employees and you can add 820 00:34:40,239 --> 00:34:42,800 Speaker 2: one load a day, that like literally increases your ebadeb 821 00:34:42,840 --> 00:34:46,239 Speaker 2: hi fifty sixty seventy percent. It's massively a creative right. 822 00:34:46,239 --> 00:34:48,040 Speaker 2: And so like making sure that you have the right 823 00:34:48,320 --> 00:34:51,319 Speaker 2: employees with the right culture and the right effort. You know, 824 00:34:51,360 --> 00:34:53,479 Speaker 2: that's the biggest thing that we worry about at Arrive 825 00:34:53,600 --> 00:34:55,800 Speaker 2: is continuing to hire the right people and then retaining 826 00:34:55,800 --> 00:34:58,160 Speaker 2: our people once they get here. I think our executive 827 00:34:58,160 --> 00:35:00,879 Speaker 2: team at Arrive spends more time talking about attention than 828 00:35:00,880 --> 00:35:04,920 Speaker 2: almost anything else because the amount of productivity improvement, the 829 00:35:05,000 --> 00:35:06,920 Speaker 2: quality of the service that we give our cares, the 830 00:35:06,960 --> 00:35:09,359 Speaker 2: quality of service we give our customers with that rep 831 00:35:09,400 --> 00:35:11,680 Speaker 2: at the year, year, two, year, three, year, four, year 832 00:35:11,719 --> 00:35:14,120 Speaker 2: five is exponential. And so you know, those are the 833 00:35:14,120 --> 00:35:15,239 Speaker 2: big things that keep me up. 834 00:35:16,120 --> 00:35:19,280 Speaker 1: And so you know, outside of you know, writing checks 835 00:35:19,280 --> 00:35:22,319 Speaker 1: and paying people, what is the biggest driver do you 836 00:35:22,360 --> 00:35:26,480 Speaker 1: think for the younger generation coming in to retain them? 837 00:35:26,920 --> 00:35:28,680 Speaker 2: Yeah, I mean they have to see it's a place 838 00:35:28,680 --> 00:35:30,200 Speaker 2: where they can. At the end of the day, this 839 00:35:30,239 --> 00:35:33,040 Speaker 2: is a sales culture and you're here to make You're 840 00:35:33,040 --> 00:35:34,680 Speaker 2: not going to be here unless you want to make money. 841 00:35:34,760 --> 00:35:36,880 Speaker 2: And that this is from a sales perspective. From a 842 00:35:37,000 --> 00:35:39,400 Speaker 2: from an operations perspective, you've got to have career pathing. 843 00:35:39,440 --> 00:35:40,719 Speaker 2: You've got a lot you have to see a lot 844 00:35:40,760 --> 00:35:43,760 Speaker 2: of opportunity. There's so many different places within the organization 845 00:35:43,800 --> 00:35:46,120 Speaker 2: that you can move within our operational department. But from 846 00:35:46,120 --> 00:35:48,759 Speaker 2: a sales perspective, you have to be money motivated. And 847 00:35:48,800 --> 00:35:50,960 Speaker 2: the draw is you got to work for a company 848 00:35:51,080 --> 00:35:53,280 Speaker 2: that gives you the most opportunity to have a lucrative 849 00:35:53,320 --> 00:35:55,960 Speaker 2: you know, compensation program. And so when we look at 850 00:35:56,000 --> 00:35:58,680 Speaker 2: our compensation and we benchmark our average earnings by year 851 00:35:58,760 --> 00:36:00,440 Speaker 2: versus all of our peers, we're in. 852 00:36:00,600 --> 00:36:01,759 Speaker 3: Like the top percentile. 853 00:36:01,800 --> 00:36:03,920 Speaker 2: And so making sure that they feel like the company 854 00:36:03,920 --> 00:36:05,839 Speaker 2: that they're at is investing in them if they work 855 00:36:05,880 --> 00:36:08,400 Speaker 2: hard and they stay that there's financial rewards for that, 856 00:36:08,480 --> 00:36:10,840 Speaker 2: and so you know, obviously it's not just about margin, 857 00:36:10,880 --> 00:36:12,919 Speaker 2: like we pay our people based off of services too, 858 00:36:13,000 --> 00:36:14,720 Speaker 2: like how are you servicing your customer? 859 00:36:14,719 --> 00:36:16,960 Speaker 3: How are you servicing your carrier? And so it's driving 860 00:36:17,000 --> 00:36:17,680 Speaker 3: the right behavior. 861 00:36:17,719 --> 00:36:19,759 Speaker 2: But ultimately it's a sales company and they need to 862 00:36:19,800 --> 00:36:22,600 Speaker 2: be rewarded if they do what the company expects of them. Right. 863 00:36:22,920 --> 00:36:26,080 Speaker 1: So you know, since since founding the company, you know, 864 00:36:26,440 --> 00:36:29,160 Speaker 1: around ten years ago, obviously you've had a lot of 865 00:36:29,200 --> 00:36:32,520 Speaker 1: wins because you've grown it to a successful company. Was 866 00:36:32,560 --> 00:36:34,839 Speaker 1: there a moment in time where you're just like, oh 867 00:36:34,880 --> 00:36:37,040 Speaker 1: my god, I made it, Like this is really gonna 868 00:36:37,080 --> 00:36:38,160 Speaker 1: this is really going to happen. 869 00:36:38,920 --> 00:36:41,160 Speaker 2: So you know, what I will say is we are 870 00:36:41,200 --> 00:36:43,359 Speaker 2: like this relentless pursuit of perfection is what we say 871 00:36:43,400 --> 00:36:45,000 Speaker 2: all the time on the leadership team, Like we know 872 00:36:45,040 --> 00:36:46,799 Speaker 2: we can always be better, we can get better every 873 00:36:46,840 --> 00:36:49,239 Speaker 2: single day. But I will say that I think one 874 00:36:49,280 --> 00:36:51,840 Speaker 2: of the most satisfying things that I know this sounds stupid, 875 00:36:51,840 --> 00:36:53,839 Speaker 2: but we got to a point where even in the 876 00:36:53,880 --> 00:36:57,200 Speaker 2: worst of the cycle, like right now, we are still profitable, right, 877 00:36:57,440 --> 00:36:59,520 Speaker 2: And I think that's a huge testament. There's so many 878 00:36:59,560 --> 00:37:01,839 Speaker 2: companies that start came into the industry, we almost got 879 00:37:01,880 --> 00:37:04,040 Speaker 2: looped into like the digital freight broker because of when 880 00:37:04,080 --> 00:37:06,759 Speaker 2: we started arrive and none of those companies have ever 881 00:37:06,760 --> 00:37:09,320 Speaker 2: been able to get to ibadah or cash flow positive. 882 00:37:09,600 --> 00:37:11,000 Speaker 2: And so for us to be able to grow, I mean, 883 00:37:11,040 --> 00:37:13,319 Speaker 2: we're going to be up fifteen percent in volume in 884 00:37:13,400 --> 00:37:15,360 Speaker 2: Q four year over year, and for us to be 885 00:37:15,360 --> 00:37:17,040 Speaker 2: able to take market share the way that we are 886 00:37:17,160 --> 00:37:19,479 Speaker 2: grow organically, the way that we have, which no one's 887 00:37:19,520 --> 00:37:23,520 Speaker 2: ever done before, and do it with positive cash flow 888 00:37:24,080 --> 00:37:27,400 Speaker 2: is truly remarkable. And so like, we're not a business 889 00:37:27,400 --> 00:37:29,800 Speaker 2: that just buys market share and does all these things 890 00:37:29,800 --> 00:37:31,839 Speaker 2: and throws money at the wall. We've built a really 891 00:37:31,840 --> 00:37:34,080 Speaker 2: sustainable business, a business that's going to be here no 892 00:37:34,120 --> 00:37:36,160 Speaker 2: matter how bad the industry is or how good the 893 00:37:36,160 --> 00:37:38,319 Speaker 2: industry is. And so for us, you know, that takes 894 00:37:38,360 --> 00:37:40,640 Speaker 2: such a it's such a cyber relief knowing that you 895 00:37:40,640 --> 00:37:42,360 Speaker 2: don't need to go raise capital. You're not going to 896 00:37:42,400 --> 00:37:44,360 Speaker 2: be in this position where you're like, oh man, we 897 00:37:44,400 --> 00:37:45,480 Speaker 2: got to push out payables. 898 00:37:45,480 --> 00:37:48,799 Speaker 3: We can't pay our employees. Like it's it's a really 899 00:37:48,800 --> 00:37:49,480 Speaker 3: good place to be. 900 00:37:49,560 --> 00:37:49,680 Speaker 1: Now. 901 00:37:49,719 --> 00:37:52,680 Speaker 2: Obviously our expectations haven't changed. We want to continue to 902 00:37:52,760 --> 00:37:56,319 Speaker 2: obviously maximize shareholder value over time, but being in a 903 00:37:56,360 --> 00:37:58,600 Speaker 2: position that our cost structure is at such a place 904 00:37:58,600 --> 00:38:00,640 Speaker 2: that our loads and our scales that such a place 905 00:38:00,800 --> 00:38:02,960 Speaker 2: that even in the worst of times, we're profitable has 906 00:38:02,960 --> 00:38:05,239 Speaker 2: been a huge cyberlief for myself, for my board, and 907 00:38:05,280 --> 00:38:07,520 Speaker 2: for all of the leadership team here and Arrived. 908 00:38:08,400 --> 00:38:11,880 Speaker 1: And as a founder and leader at Arrive. Is there 909 00:38:11,880 --> 00:38:13,160 Speaker 1: anything that keeps you up at night? 910 00:38:13,560 --> 00:38:15,000 Speaker 3: You know, I kind of touched on it. 911 00:38:15,000 --> 00:38:16,880 Speaker 2: It's a people business, and I think at the end 912 00:38:16,920 --> 00:38:18,480 Speaker 2: of the day, the things that keep me up is 913 00:38:18,560 --> 00:38:21,239 Speaker 2: are people happy? Are we doing everything we can to 914 00:38:21,280 --> 00:38:24,560 Speaker 2: be an employer of choice? Are we having the right compensation? 915 00:38:24,600 --> 00:38:26,120 Speaker 2: Do we have the right incentives? Do we have the 916 00:38:26,200 --> 00:38:30,799 Speaker 2: right like engagement? Internally? Are our managers bought in? Are 917 00:38:30,840 --> 00:38:32,719 Speaker 2: the directors bought in? Are the vps bought in? And 918 00:38:32,760 --> 00:38:34,760 Speaker 2: then if they're all bought in, how are they buying, 919 00:38:34,840 --> 00:38:36,880 Speaker 2: you know, creating that culture within their teams? And so 920 00:38:37,160 --> 00:38:39,960 Speaker 2: for me, all of my stress, all my worries always 921 00:38:40,000 --> 00:38:41,719 Speaker 2: go back to the people, because I know that if 922 00:38:41,719 --> 00:38:43,680 Speaker 2: our people are dialed in and they're bought in and 923 00:38:43,680 --> 00:38:46,960 Speaker 2: they're excited, no one's better than us. I mean a 924 00:38:47,000 --> 00:38:49,160 Speaker 2: way to you know, kind of like prove that is, 925 00:38:49,400 --> 00:38:52,439 Speaker 2: in the last eighteen months, we've won twenty five care 926 00:38:52,480 --> 00:38:54,680 Speaker 2: of the Year awars from fourtune five hundred companies. 927 00:38:54,880 --> 00:38:56,520 Speaker 3: The next closest person is six. 928 00:38:57,040 --> 00:38:59,200 Speaker 2: So I mean we've won by a factor of like 929 00:38:59,200 --> 00:39:01,480 Speaker 2: four hundred percent that and so like when our people 930 00:39:01,480 --> 00:39:03,960 Speaker 2: are excited and they're dialed in, we've got the best 931 00:39:04,000 --> 00:39:06,600 Speaker 2: service in the in the industry, obviously approved being the 932 00:39:06,680 --> 00:39:09,080 Speaker 2: number of awards we get from top companies every single day. 933 00:39:09,120 --> 00:39:10,960 Speaker 2: And so for me, it's how do you keep that 934 00:39:10,960 --> 00:39:13,279 Speaker 2: that vision, how do you keep that mentality that buy 935 00:39:13,320 --> 00:39:16,040 Speaker 2: in and if you lose it, it's it's it's detrimental 936 00:39:16,080 --> 00:39:17,279 Speaker 2: long term of the business. 937 00:39:17,800 --> 00:39:20,440 Speaker 1: That's great, This was a great conversation. I just had 938 00:39:20,480 --> 00:39:23,080 Speaker 1: one last question for you. It might be a little controversial. 939 00:39:23,440 --> 00:39:26,240 Speaker 1: You know, you're you're you're out of base, out of Austin. 940 00:39:26,480 --> 00:39:29,680 Speaker 1: What's your favorite barbecue place in Austin, Texas? 941 00:39:30,640 --> 00:39:33,760 Speaker 2: You know what A lot of people like Terry Blacks 942 00:39:33,800 --> 00:39:37,759 Speaker 2: and obviously Lambert's and all the other ones. Salt Like 943 00:39:37,840 --> 00:39:39,319 Speaker 2: to me is like near and dear to my heart. 944 00:39:39,360 --> 00:39:41,839 Speaker 2: It's just like so authentic. It's a great experience. It's 945 00:39:41,840 --> 00:39:44,640 Speaker 2: outside of Austin. It was the first place I took 946 00:39:44,680 --> 00:39:47,920 Speaker 2: my wife on a date. So I love Salt Lake 947 00:39:48,000 --> 00:39:48,640 Speaker 2: just because of that. 948 00:39:49,640 --> 00:39:52,200 Speaker 1: Okay, so what you're saying is if you really like 949 00:39:52,280 --> 00:39:53,560 Speaker 1: somebody taking the salt. 950 00:39:53,440 --> 00:39:57,320 Speaker 2: Like no, no, it's I mean if she was from Boston. 951 00:39:57,440 --> 00:40:00,640 Speaker 2: So it was an eye opening experience, that's for sure. 952 00:40:00,719 --> 00:40:02,680 Speaker 2: So it was a test I think. 953 00:40:03,719 --> 00:40:06,080 Speaker 1: Well fantastic. I'm glad it worked out for it. I 954 00:40:06,080 --> 00:40:09,000 Speaker 1: really want to thank you for your time and insights today, Matt. 955 00:40:09,520 --> 00:40:11,719 Speaker 3: Absolutely, thank you so much. I really appreciate you having 956 00:40:11,719 --> 00:40:12,480 Speaker 3: me on the show today. 957 00:40:13,000 --> 00:40:14,560 Speaker 1: Yeah, and I want to thank you for tuning in. 958 00:40:14,600 --> 00:40:17,280 Speaker 1: If you'd liked the episode, please subscribe and leave a review. 959 00:40:17,600 --> 00:40:20,200 Speaker 1: We've lined up a number of great guests for the podcast, 960 00:40:20,239 --> 00:40:25,279 Speaker 1: so please check back to hear conversations with C suite executives, shippers, regulators, 961 00:40:25,400 --> 00:40:28,400 Speaker 1: and decision makers within the freight markets. Also, if you 962 00:40:28,400 --> 00:40:31,480 Speaker 1: want to learn more about the freight transportation markets, check 963 00:40:31,520 --> 00:40:33,680 Speaker 1: out our work on the Bloomberg Terminal, at bi go 964 00:40:34,160 --> 00:40:37,240 Speaker 1: and on social media. Take care and keep those supply 965 00:40:37,360 --> 00:40:39,680 Speaker 1: chains moving. Thanks a lot, everyone, and be well.