Dot.Com Firms Rise and Fall in 2000 Frenzy

The year 2000 bug got a lot of attention in 1999, but by Jan. 1, 2000, using the Internet to make money — or more precisely, lose money — was all the rage.

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Trucking techies ushered in the new millennium talking about dot.com freight exchanges, online buying cooperatives, data aggregation, critical mass, efficiencies building and all manner of other means to revolutionize freight movement with technology.

But just as dot.com businesses in general have faltered, trucking dot.coms plummeted as fast as they spiked.

Thus the old rules hold true for how not to build a business, especially one with no proven model for success. Venture capitalists, who just one year ago were pumping money into online business models that were drawn up on cocktail napkins, now are taking a cold hard look at the likelihood that a business plan will make money, and fast.

More than 200 online firms targeting transportation were launched in 2000. Many are still hanging on, but others have closed their doors or gone the merger route.

Transportal.com, the online advocate for trucking companies, went down the tubes in September.

Fleetworks Parts Exchange lost the support of Meritor Corp., changed its name to Fleetscape and disappeared from view over the course of 2000. Fleetworks tried to pull parts sellers and buyers into one online trading community. The intent of the exchange was to reduce costs and increase marketing opportunities for sellers and to offer parts to buyers at reduced rates. Truck makers discouraged Meritor from participating because they feared the exchange would bypass dealer networks. After Meritor’s withdrawal, the exchange could never garner enough support to get off the ground.

For the full story, see the Jan. 1 print edition of Transport Topics. Subscribe today.