The U.S. Long Haul Trucking Industry Through The Lens of Frei's Service Model

Abstract

This paper examines the irregular route, long-haul segment of the U.S.
trucking industry through the lens of Frei’s (2008) service model. Firms in this
industry often offer too many services. Frei’s model predicts firms that do not focus
on the market niches that are best met by their core expertise are at risk of losing their
profitable niches to competitors. To address two key industry problems identified
through the lens of this service model, a modification to the industry’s billing model
and a minimum guaranteed daily wage for drivers are proposed.