Transportation & Logistics Startups

Recent Developments in the Shipper / Carrier Market

BROKERS

SHIPPERS

CARRIERS

BROKERS

SHIPPERS

Through a broker, shippers are matched with carriers based on load requirements, truck

location / availability, shipper’s preferred trucking contractor(s) etc.

Shippers and carriers are connected via a centralized platform; shippers post freight info, and carriers post capacity info. They are then

matched.

Legacy Model Disruptive Model

For Shippers:

˗ Limited ability to track freight

˗ No industry standard for driver vetting and en-route tracking

For Carriers:

˗ Excess capacity: empty trucks cost ~$25.5 Bn annually

˗ Average trucker drives empty 500+ miles / mo.

˗ Reverse auction model means shippers benefit

For Shippers:

˗ Universal ability to track freight through central platform

˗ Reduced time to pick-up (from ~96 hr avg.)

˗ Lower fees (relative to legacy freight broker 10-15%)

For Carriers:

˗ Low / or $0 fees paid to platform provider

˗ Real-time matching with available loads

˗ Route recommendation service

Reduced reliance on brokerage

CARRIERS

The Shipper / Carrier Market is an evolving model …

© Copyright 2015 James Harris. All Rights Reserved

LOCAL

Exclusively targets local trucking (<150 mi); works to partner with small to medium sized trucking companies

Solves key “last mile delivery” pain-point for most shippers

Relies heavily on market density, population, truck availability etc.

LONG-HAUL

Highlights

More focused on long-haul trucking; works to partner with larger trucking & shipment co.’s

Largely focused on the wasted free capacity issue for long-haul truckers

Local vs. Long-Haul Market

… with different derivations

Despite targeting different segments, players in each market provide a similar service and technology offering:

˗ Location based load matching

˗ Load tracking (for shippers)

˗ Route recommendation (for truckers)

˗ Reliable trucker vetting / onboarding

˗ Shipping insurance

˗ Real-time quotes

“Uberization”

© Copyright 2015 James Harris. All Rights Reserved

Dashboard (Shipper) Mobile (Carrier)

Shippers post freight info, pickup and

destination locations, and view

available drivers

Carriers accept/reject

shipment(s), and confirm delivery upon completion

“Uberization” - Local Market Use Case

© Copyright 2015 James Harris. All Rights Reserved

Dashboard (Shipper) Mobile (Carrier)

Shippers post freight info, pickup and

destination locations, and view

available drivers

Carriers enter long haul origin &

destination, and receive offers based

on route

“Uberization” - Long-Haul Use Case

© Copyright 2015 James Harris. All Rights Reserved

Company Investment Profile Traction / Differentiation

Transfix

Long-Haul Matching

RAISED $2MM SEED – Aug, 2014

- Expansion VC; Bowery Capital; Corigin Ventures

• ~1000 registered drivers

• $100k+ in monthly recurring revenue

• Customers include: Barnes & Noble, Samsung, SuperValu, J.Crew

Traansmission

Long-Haul Matching

RAISING SEED WITHIN 2-3 MONTHS • $0 broker fees to truckers

• Route recommendation engine (under dev)

• Reduces pickup time to 2 hours vs. broker average of 96

• 3000 daily loads; 210 trucks, 36 shippers

Keychain

Long-Haul Matching

RAISED $2.5MM SEED – Jan, 2013

- Y-Combinator; Andreessen Horowitz; SoftBank Capital; BoxGroup; Others

• Serves 30 cities

• Free lane pricing tool (under development) will provide real time route quotes

Cargomatic

Local Matching

RAISED $8MM SERIES A – Jan, 2015

- Winklevoss Capital; Volvo Group VC; Structure Capital; Estes; Others

• Focus is on local shipments (<150miles) - not much competition

• $10+MM in total funding

• Good strategic investors (Volvo VC; Estes – owner of largest private trucking company in US)

Preliminary Verdict

• Available data points to solid traction

• Differentiation is unclear relative to other players

• Traction seemed strong early on

• No recent developments / large contracts of note

• Tackling a market that is most willing / ready to adopt this type of solution

• Not much competition exists in local market

High Level Competitive Landscape

© Copyright 2015 James Harris. All Rights Reserved