Customer recycling in transport

In business, when a customer leaves a supplier, that’s usually the end of the road. The client takes their money elsewhere, and the relationship is over.

Not so in parts of the Australian transport industry. Some operators have taken “customer recycling” to a new level — using sub-companies, sister companies, and hidden ownership structures to keep customers in the family without them realising it.

How It Works

1. The Split — A customer becomes unhappy with a transport company and decides to move on.
2. The “New” Option — Through industry contacts, advertising, or a broker, they get referred to what appears to be a totally separate transport provider.
3. The Hidden Link — This “new” provider is actually a sub-company, sister brand, or trading name owned by the same parent company they just left.
4. The Win for the Company — The customer believes they’ve made a clean break, but the original company still controls their account — and their revenue.
    

Why Companies Do It

• Customer Retention by Deception — Keeps revenue in-house even when the relationship sours.
• Market Domination — Appears to be multiple competitors in the market when it’s really one player with many names.
• Brand Damage Control — Allows the parent company to keep doing business with customers who would never touch their original brand again.
   

The Impact on Customers

• False Choice — Customers think they’re choosing between competitors, but they’re really picking between different arms of the same business.
• No Leverage — Without real competition, pricing and service improvements are limited.
• Trust Erosion — When customers eventually find out, it destroys confidence in the entire supplier network.
   

How to Spot It

1. Check the ABN/ACN — Many “different” transport companies are registered to the same entity or directors.
2. Look for Shared Resources — Same depot address, same trucks, same drivers — just different branding.
3. Follow the Digital Trail — Websites, social media, and even Google reviews often link back to the same people.
    

The Bottom Line

In Customer Recycling 2.0, you’re not just being rotated between drivers — you’re being rotated between brands that all feed the same bottom line.

It’s a way for transport companies to hold onto customers who think they’ve left, maintain market share, and protect profits — all without ever changing how they operate.

For customers, the takeaway is clear: before you switch providers, make sure you’re not just moving from one pocket to the other.