Transportation and Logistics Systems Inc (TLSS)

[bigtimetrader]

Based on the CEO's long history of acquisitions to achieve economies of scale, I think we can expect similar actions because, as Amazon can surely teach anyone, scale and market share are the keys to industry dominance, especially in transportation and logistics, a highly competitive industry. In Economics 101 you learn in such industries that success is all about scale. Amazon is currently attempting to dilute the industry by going small and wide with delivery startups through its delivery service partnership program, and I believe the appropriate reaction for industry participants is to unite against Amazon's interference via mergers and consolidation. The weakness of the usurpers is their nature, they are small and inexperienced. The correct defense is to go big and deep by increasing scale through industry consolidation and vertical integration. Thus, industry players will wield greater control over rates, more bargaining power, more market share, obtain larger and longer contracts, and defend against this incursion by squeezing them out with the stability, superior unit economics, high concentration of expertise, and coverage a consolidated operation offers.