Mover Competition Riding the Internet
BAL HARBOUR, Fla. — Movers have decided to take action to stem the tide of Internet-based operations taking a slice out of their household goods hauling business.
The moving industry is concerned about the rising competition it faces on the Internet – from less-than-truckload companies picking up trailers that consumers have loaded themselves by using Web sites that take a cut from a mover’s payment in return for business leads. Consolidated Freightways has established CFMovesU.com within the past year, for example, and upstart Movenet.com is set to begin in March.
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The board of the American Moving and Storage Association, meeting for its annual convention, Feb. 24 to 28, voted to establish a committee to look at the competitive threat posed by online businesses. Also, the organization’s leaders were given free reign to continue to lobby federal regulators to make sure non-traditional competitors meet the same requirements as movers.
Class I carriers, such as United Van Lines, Wheaton World-Wide and Nilson Van Lines, had revenue of $4.05 billion in 1998, the latest figure available from AMSA. Private household and corporate moves accounted for 84.5% of business and government agencies 15.5% in 1998.
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