2
Transportation & Logistics IT Spend
Supply Chain & Logistics TechWHY IT MATTERS: INDUSTRY IT SPENDING TRENDS
Source: Gartner
2013 $9.75B2014 10.50 2015 11.282016 12.062017 12.942018 13.88
CAGR: +7.3%% Budget: 2.8% (below avg.)
Base Case: Low Penetration + High Potential Cost Savings = Strong Growth
3
Supply Chain & Logistics TechWHY IT MATTERS: “UNBUNDLING FEDEX”
Upside Case: Complete Disruption of Existing, Inefficient System
4
Investment Activity
Source: CB Insights1. https://www.cbinsights.com/blog/tech-industry-exits/
Supply Chain & Logistics TechWHY IT MATTERS: INVESTMENT AND EXIT MOMENTUM
Exit Activity
2014 # Deals: 1012014 $ Invested: $366.7MYoY Growth (by #): +166%YoY Growth (by $): +31%
2014 # Deals: 142010 # Deals:
52010-2014 CAGR: +46%Median Time to Exit: 6 yrs.Exit Growth Industry Rank:1 #8
5
AGENDA
The Logistics Technology Landscape
Collaborative Consumption Meets Logistics
Investment Opportunities
Sources and References
PRESENTATION OVERVIEW
Business Model Innovations
Susceptible Verticals
Collaborative Consumption Plays
6
AGENDA
The Logistics Technology Landscape
Collaborative Consumption Meets Logistics
Investment Opportunities
Sources and References
Business Model Innovations
Susceptible Verticals
Collaborative Consumption Plays
7
$Full Stack /
Collapsing the Value Chain
Smart Phonesin Pockets
On-Demand ServicesOffer Flexible Workto Underemployed
Logistics Comes Online
IoT / Wearables& Ubiquitous Connectivity
Logistics Tech LandscapeDRIVERS OF INNOVATION
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Logistics Tech LandscapeMARKET MAP
Local Delivery(Misc.)
Local Delivery(Food) Transportation
Travel & Hospitality
Moving &Storage
Long DistanceDelivery
Customer Segments
Enterprise
SMB
Consumer
Revenue Models
Subscription (B2B: SaaS)
On-Demand Service Fee
Software Licensing
Distribution Models
Bottom Up / Self-Serve
API / Resellers
MOBILE
9
Logistics Tech LandscapeAREAS OF INNOVATION AND OPPORTUNITY
Local Delivery(Misc.)
Local Delivery(Food) Transportation
Travel & Hospitality
Moving &Storage
Long DistanceDelivery
Customer Segments
Enterprise
SMB
Consumer
Revenue Models
Subscription (SaaS B2B)
On Demand Service Fee
Software Licensing
Distribution Models
Bottom Up / Self-Serve
API / Resellers
MOBILE
Too Crowded
BigWinners
Too Costly
10
AGENDA
The Logistics Technology Landscape
Collaborative Consumption Meets Logistics
Investment Opportunities
Sources and References
Business Model Innovations
Susceptible Verticals
Collaborative Consumption Plays
11
Collaborative Consumption & LogisticsWHAT AND WHY NOW?
Traditional Supply Chain & Logistics
Asset Heavy: Idling Capacity:
Collaborative or crowd-based models use technology to create increased access to abundant and underutilized traditional logistics
infrastructure, including warehouses, vehicle fleets, fuel, and employees.
12
Collaborative Consumption & LogisticsWHAT AND WHY NOW?
MILLIENNIALS ACCESS Over Ownership
Source: Goldman Sachshttp://www.goldmansachs.com/our-thinking/outlook/millennials/index.html
“25 years from now, car sharing will be the norm, and car ownership an anomaly.” - Jeremy Rifkin, The Third Industrial Revolution
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Collaborative Consumption & LogisticsGROCERY CASE: WEBVAN (1.0) VS INSTACART (2.0)
Asset Heavy Asset Light
Source: Wall Street Journalhttp://www.wsj.com/articles/rebuilding-historys-biggest-dot-come-bust-1421111794
42%
62%
0%
2%
67%
1.5x
IC / WV
14
AGENDA
The Logistics Technology Landscape
Collaborative Consumption Meets Logistics
Investment Opportunities
Sources and References
Business Model Innovations
Susceptible Verticals
Collaborative Consumption Plays
15
Local Delivery (Misc.) Category Landscape
• US Market Size: $96B1
• Participants: 26 (Capterra)
• Platform Plays: Amazon Prime, Google Express, UberRush, DHL MyWays
• Up-and-Comers / Novel Approaches: Hello Alfred ($12.5M raised, SV Angel, Spark, NEA, Sherpa, Crunchfund)
Doorman (ND, 500 Startups) Magic ($12M; Sequoia, YC) Postmates ($58M; Spark, Crosslink, SoftTech)
• Summary: Last mile issues remain for platform leaders. Opportunity to better serve both consumer and enterprise customers.
Potential Fit: Parcel
• HQ: Brooklyn, NY
• Founded: 2013
• Funds raised: $1M (Archangel, David Cohen, Galvanize, Great Oaks, Liberty City Ventures)
• FTE: 5 (LinkedIn)
• Key Exec: Jesse Kaplan, Co-founder/CEO
Description: Off-hours, last mile delivery service for online shoppers.
Local Delivery (misc.) Susceptible Verticals
Source: IBIS Worldhttp://www.ibisworld.com/industry/default.aspx?indid=1950
16
Local Delivery (Misc.)
Travel & Hospitality
Potential Fit: Pillow Homes, Inc.
• HQ: San Francisco, CA
• Founded: 2014
• Funds raised: $2.65M (Boost VC, Homebrew, Peak Ventures, Sherpa Ventures)
• FTE: 35 (LinkedIn)
• Key Exec: Sean Conway, Co-founder/CEO
Description: Automated booking platform based on predicted occupancy and pricing dynamics.
Susceptible Verticals
Category Landscape
• US Market Size: $960B1
• Participants: 111 (Capterra)
• Platform Plays: AirBnB, Home Away (VRBO) HotelTonight
• Up-and-Comers / Novel Approaches: Couchsurfing ($22.6M; Benchmark, Omidyar, General Catalyst, Menlo Ventures) OneFineStay ($15.9M; PROfounders, Index, Canaan) Room 77 ($44M; Felicis, General Catalyst, Sutter Hill, Expedia)
• Summary: Next generation platforms largely established, leaving room for middleware and/or service layer products.
Source: IBIS Worldhttp://www.ibisworld.com/industry/default.aspx?indid=2002
17
Local Delivery (Misc.)
Moving & Storage
Potential Fit: Moveline
• HQ: Las Vegas, NV
• Founded: 2012
• Funds raised: $4.8M (ff VC, Quotidian, Box Group, TechStars, Tony Hsieh)
• FTE: 22 (LinkedIn)
• Key Exec: Frederick Cook, Founder/CEO
Description: Marketplace for finding and comparing moving services with price quotes.
Susceptible Verticals
Category Landscape
• US Market Size: $42B1
• Participants: 27 (Capterra)
• Platform Plays: U-Haul Marketplace, UberCargo
• Up-and-Comers / Novel Approaches: Bellhops ($7.8M, Lowercase, GreatOaks,YC) Boxbee ($7.3M, 500 SU, Floodgate, Google) Buddytruk ($580k; Angels) Makespace ($10.1M; Lowercase, Primary, O’Reilly AlphaTech, Slow, Upfront)
• Summary: Smaller market but establishment cos. are decades behind on IT spend; emergence of dominant, tech-enabled platform not yet visible.
Source: IBIS Worldhttp://www.ibisworld.com/industry/default.aspx?indid=1351 and http://www.ibisworld.com/industry/default.aspx?indid=1154
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Local Delivery (Misc.)
Potential Fit: Managed by Q
• HQ: New York, NY
• Founded: 2013
• Funds raised: $2.4M (Homebrew, RRE, Slow Ventures, Dave Morin, Scott Belsky)
• FTE: 31 (LinkedIn)
• Key Exec: Dan Teran, Co-founder
Description: On-demand office cleaning and operations services via iPad.
Customer SegmentationSMB / ‘CONSUMERIZATION’
Biz Model Innovation
Category Landscape
• Explanation: Internet and smart phone ubiquity enables traditional enterprise SaaS products to be developed as lower cost, consumer-like solutions.
• Leaders: DropBox (biz intel), InfusionSoft (mkting automation), Shopify (commerce/POS)
• Risers/Novel Approaches: Breather ($7.5M; RRE, Vayner/RSE, Dave McClure) DoorDash ($59.7M; KPCB, Khosla, Sequoia) Freight Farms ($4.9M; Spark, Launch Capital, Rothenberg Ventures, TechStars) Roadie ($10M; UPS, Tomorrow Ventures)
• Summary: Especially viable in fragmented markets (local delivery, professional services).
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Local Delivery (Misc.)
Potential Fit: Transfix
• HQ: New York, NY
• Founded: 2013
• Funds raised: $2.0M (Bowery, Lerer Hippeau, Founder Collective, Deep Fork)
• FTE: 12 (LinkedIn)
• Key Exec: Drew McElroy, Co-Founder & CEO
Description: Mobile & web platform matching shippers, drivers for interstate freight shipping.
RevenueON-DEMAND / SERVICE FEE
Biz Model Innovation
Category Landscape
• Explanation: Transaction fees for instantly-gratifying, ‘delightful’ experiences generate more loyal, locked-in customers than do more traditional recurring revenue strategies.
• Leaders: Google Express, Handy, Instacart, Magic, Postmates, TaskRabbit
• Risers/Novel Approaches: Cargomatic ($10.6M; Sherpa Ventures, SV Angel, Winklevoss Capital)
Onfleet ($2.3M; MENA Ventures, StartX) Shyp ($62M; KPCB, Homebrew, Sherpa) Union Station ($1.6M; a16z, Index, D. Tisch, _Joanne Wilson) -- fka Little Borrowed Dress
• Summary: Applicable in wide-range of horizontals, verticals but LT efficacy unknown.
20
Local Delivery (Misc.)
Potential Fit: TransportAPI
• HQ: London, UK
• Founded: 2011
• Funds raised: ND (UK Government)
• FTE: 3 (LinkedIn)
• Key Exec: Jonathan Roper, Co-founder/CEO
Description: Aggregates transport data into restful API. 600 developer clients, including Heathrow Airport, IKEA, Toothpick (on demand dental)
DistributionAPI / RESELLERS
Biz Model Innovation
Category Landscape
• Explanation: Logistics data/algorithms are key value driver for on-demand services, powered quickly by horizontal/API-based solutions.
• Leaders: DHL Integrated Shipping Solutions, Google Maps, Stripe, Twilio
• Risers/Novel Approaches: Layer ($22.0M; Salesforce, Homebrew, Greycroft, e.ventures, SV Angel) Mapbox ($10.6M;Foundry, Knight Foundation) Shippo ($2.3M; 500 Startups, Slow Ventures, Softtech, Joanne Wilson) ShipHawk ($6M; Soma Capital, Rothenberg Ventures, Wavemaker Parners, DN Capital)
• Summary: Intersection of two massive macro trends: ‘on-demand economy’ and ‘API-ification’
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Collaborative ConsumptionWAYS TO PLAY
Local Delivery(Misc.)
Local Delivery(Food) Transportation
Travel & Hospitality
Moving &Storage
Long DistanceDelivery
Point-to-point services abound but what about
public transpo-like routes?
Chariot ($3.0M; SoftTech,
YC, Maven)
Collaborate & Consume
Local carrierswith unutilized
capacity; room for open, real-time
network…
Cargomatic ($10.6M; SV Angel, Sherpa Ventures)
Niche, but still large, segments largely unclaimed (i.e. weddings)…
Union Station ($1.6M; a16z,
Index, D. Tisch)
Massive capacity exists but few tools
enable users to directly interface with infrastructure
Roadie ($10M; UPS,
Tomorrow Ventures)
Enough demand for
“ridesharing for your things?”
Bellhops ($7.8M; Lowercase,
Great Oaks)
Consumer-facing wars underway but will new behaviors affect the supply
chain?
Freight Farms ($4.9M; Spark
Capital, Launch Capital, Techstars)
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AGENDA
The Logistics Technology Landscape
Collaborative Consumption Meets Logistics
Investment Opportunities
Sources and References
Business Model Innovations
Susceptible Verticals
Collaborative Consumption Plays
23
SOURCES & REFERENCESWORKS CITED
Sources
AngelList
Australian Financial Review
Business Insider
Capterra
CB Insights
CrunchBase
Gartner
Goldman Sachs
IBIS World
Logistics Management
ProgrammableWeb
Wall Street Journal
Blogs and Presentations
Entrepreneurs and Academics
Rachel Botsman; Founder, Collaborative LabCollaborative Logistics: Ripe for Disruption
Manfred Bortenschlager; Director of API, 3SCALEUnseen Enablers of Platforms
Venture Capitalists
Mike Brown; Partner, Bowery CapitalOpportunities in Vertical Software
Vic Singh; Partner, Homebrew VenturesThe Bottom Up Economy
Steve Schlafman; Principal, RREOn Demand Everything
Zak SchwartzmanThe Vertical API Opportunity
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