A high level overview of developments in the shipper / carrier transporation & logistics market

1. Transportation & Logistics Startups
Recent Developments in the Shipper / Carrier Market

2. BROKERS
SHIPPER
S
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

3. 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

4. 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

5. 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

6. 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