Collaboration among shippers and carriers in the transportation industry facilitates more efficient and cost‐effective business solutions that cannot be accomplished by companies operating alone, due to the economies of scope and scale. This article surveys the problem of designing and managing collaborative initiatives to promote both the overall efficiency and the stability of a transportation alliance. We discuss three management mechanisms, each requiring different levels of central coordination and information sharing among the participating entities, and yielding different levels of guaranteed social efficiency and coalition stability. We show that by taking into account the economies of scope and scale that arise in collaboration, a fair and efficient mechanism with limited central intervention can be designed based on analytical tools, such as those in network optimization theory, cooperative game theory, and algorithmic mechanism design. We provide an overview of the existing literature on the topic and discuss the business implications of the results, as well as point out some future research directions.