An owner-operator is a
Small businesses are types of corporations, partnerships, or sole proprietorships which have fewer employees and/or less annual revenue than a regular-sized business or corporation. Businesses are defined as "small" in terms of being able to ap ...
owner who also runs the day-to-day operations
of the company. Owner-operators are found in many business models
Franchising is based on a marketing concept which can be adopted by an organization as a strategy for business expansion. Where implemented, a franchisor licenses some or all of its know-how, procedures, intellectual property, use of its busine ...
companies in many different industries
like restaurant chains
Health care or healthcare is the improvement of health via the prevention, diagnosis, treatment, amelioration or cure
A cure is a substance or procedure that ends a medical condition, such as a medication, a surgery, surgical operation, ...
Logistics is generally the detailed organization and implementation of a complex operation. In a general business sense, logistics manages the flow of goods between the point of origin and the point of consumption to meet the requirements of ...
maintenance, repair, and operations
The technical meaning of maintenance involves functional checks, servicing, repairing or replacing of necessary devices, equipment, machinery, building infrastructure, and supporting utilities in industrial, business, and residential installa ...
In the United States and Canada, the term typically refers to
Employment is a relationship between two party (law), parties Regulation, regulating the provision of paid Labour (human activity), labour services. Usually based on a employment contract, contract, one party, the employer, which might be a co ...
who hire out and drive their own semi-trailer trucks
. In trucking, an owner-operator is a self-employed commercial
A truck driver (commonly referred to as a trucker, teamster, or driver in the United States and Canada; a truckie in Australia and New Zealand; a HGV driver in the United Kingdom, Ireland and the European Union, a lorry driver, or driver in ...
or a small business that operates trucks for transporting
In economics, goods are items that satisfy human wants
and provide utility, for example, to a consumer making a purchase of a satisfying Product (business), product. A common distinction is made between goods which are transferable, and Service ...
over highways for its customers. Most owner-operators become drivers for trucking companies first to gain experience and determine whether the career is for them.
The Motor Carrier Act of 1980
deregulated the industry and made it easier for manufacturers to set their own prices on shipping goods, and also allowed owner-operators to be more successful by taking some of the control out of the hands of the larger motor carriers
. It was now possible to find a carrier willing to haul goods for what customers wanted to pay rather than what the larger carriers' rates were.
* An owner-operator is free to either haul free-lance (non-committal to any one firm or product) or enter into a lease agreement to dedicate their equipment to one customer or product
* The owner-operator typically has to pay higher rates on
Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to Hedge ( ...
due to smaller size than most larger companies, meaning they have to charge more to balance the cost
* There are many things to consider before becoming an owner-operator, including business setup,
Accounting, also known as accountancy, is the measurement, processing, and communication of financial and non financial information about economic entity, economic entities such as businesses and corporations. Accounting, which has been calle ...
, type of vehicle, and licenses
Owner-Operator Independent Drivers Association