Similarly, if you’re one of the 96% of the 250,000 trucking companies in the United States who have less than 20 trucks, you are better off using a broker rather than just going through the roller decks. You can’t afford to have a roomful of sales people checking out the market, knowing the prices, knowing the availability of freight. You can make a call to XPO and we will find you freight for your truck. So I think over time that 50% penetration is going to up a lot. This is a very similar bet as I made at United Rentals in 1997 where I thought a similar percentage of penetration, mid teen percent was too low and equipment needed to be rented more to make economic sense too and lo and behold today over half of construction equipment in America is rented.
In addition to being a large market, a growing market, truck brokerage is very, very fragmented, much more fragmented than in other industries that I’ve consolidated. So you have on one hand you have 250,000 trucking companies for vendors. On the other hand you have literally millions of retailers, manufacturers, industrial, commercial enterprises of all sizes needing to ship goods. In the middle of that the truck brokers. You have over 10,000 licensed truck brokers in the United States. It’s a large number. It gets more interesting. Of those 10,000 truck brokers, only 25 of them have more than $200 million of revenue. So literally 99% of the 10,000 truck brokers out there have less than $10 million of EBITDA. Most of them have less than $10 million of revenue.
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