Farm-Out
Also known as: farm out, farming out, sub-contracting
Farming out is the practice of passing a booked trip to another transportation company to fulfil, typically because the originating operator has no vehicle available or the trip falls outside its service area.
The originating company keeps the customer relationship and pays the fulfilling company a negotiated rate, retaining the difference as commission. The reverse, accepting work from another operator, is called farm-in.
Related terms
- Farm-In
Farm-in is work an operator accepts from another transportation company, fulfilling a trip that the other company booked with the end customer.
- Affiliate Network
An affiliate network is a system that connects independent ground transportation operators so they can pass trips to one another, allowing a company to serve customers in cities where it owns no vehicles.
- Deadhead
Deadhead is any distance a vehicle travels without a passenger on board, such as the drive from the garage to a pickup location or the return trip after a drop-off.