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lets. cargo. B2B Transportation and Logistics Exchange for the Latin American Region. The problem (for carriers). Once carriers deliver their cargo. ...they usually have to wait a day or two until they find a contract back home
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lets cargo B2B Transportation and Logistics Exchange for the Latin American Region
The problem (for carriers) Once carriers deliver their cargo... ...they usually have to wait a day or two until they find a contract back home ...because they do not know many shippers in their destination area... Zzzzz Who pays for all this inefficiency? In the end, shippers do.
The problem (for shippers) Due to lack of liquidity, shipper pays an unfair price Shipper realizes it needs to ship ASAP... ...it calls the few local companies it knows ...only one of them has a truck available YES ...and it makes sure to charge handsomely for it
Market characterization The Carriers Fragmented, atomized Few with national span Few resources for customer acquisition Ad-hoc logistics The Shippers No means of obtaining good information Work with the few local carriers they know and trust No resources for optimizing their logistics and transportation procurement It is very expensive for both to increase their reach The end result is a very sparse network... ...that uses old technology ...thus increasing the cost of information
What if ? A win-win proposition for both lets cargo Lower processing costs Lower processing costs Improve service Increased availability Reduce unused capacity Bidding price reduction Increase reach Carrier rankings Product offers Ware housing Domain expertise Route optimization International trade Domain expertise We connect shippers and carriers together ...allow them to do business ...and offer them many additional services?
Market size ROLA ARGENTINA 35,000 trucks 50,000 trucks 2.9B 4.2B Portion of the market served by small carriers ($13 billion) A conservative estimate of only 30% of the ROLA market MEXICO 16.2B BRAZIL 95,000 trucks 17.7B A $30 billion potential target market for the region! 125,000 trucks CHILE 1.4B 20,000 trucks A 30+ billion target market Without accounting for additional, high value-add services. Logistics consulting, IT integration, insurance services, vertical transportation market, content fees, international trade Total trucking transportation market (for the industries we target) is about $45 billion. Lets take the amount spent on trucking... ...control for quality by filtering small carriers ...and assume only 30% of ROLA is a target
Competition US-based, difficult LatAm penetration by itself US-based, difficult LatAm penetration by itself Site w/dead links, low-tech, early-stage Not a marketplace per-se, under-developed site Primitive web-site, under-funded, not pan-regional All these are very early stage, with limited technology know-how. None has a substantial number of transactions! Europe Eurotrans Spain Telecarga Transplace Freightquote CargoNet eFlatbed Marex North America LoadMatch FreightMarket FreightMatrix RightFreight Very early stage IATN GoCargo First-mover’s advantage possible! CarrierPoint U.S.A. eTransport Celarix NTE Primitive, not a marketplace Mexico NetLogistiK Brazil Rodofretes WebTrans Latin America LetsCargo Chile MercoTrack Argentina Logisat Especially because quality and technology proficiency is much more important in B2B in order to gain customer trust Land Sea Air
Why us ? MARTIN EDWIN LUIS MARTIN Management DIEGO JUAN Entrepreneurship Technology and Internet Domain Expertise Grad. Degrees (business & comp. science) Experience together Hope Inc English, Spanish, Portuguese, German, … 60+ years of professional experience 51+ years of higher studies @ best schools Proven track record, focused on excellence Publications, patent, multiple awards Many natives of the region US-based high-tech experience Management experience... Entrepreneurship experience... Technology and Internet experience... Domain expertise... US graduate degrees (business & computer science) Substantial prior experience working together...
Strategic advantage LetsCargo partners with the Miebach Logistics Group Pharmaceuticals and Cosmetics Freight and Post Berlin Books and Media Mail Order Frankfurt Oxford Automotive Zug (CH) Barcelona Barcelona Detroit Milano Madrid Second-to-none domain and region expertise Global presence Leading Logistics consultancy in Latin America Access to key customers Offices in the region Provide real value to users of LetsCargo, not hype… Miami Miami Fashion Bangalore Fast Moving Consumer Goods Mexico Spare Parts (some representative clients of only the Latin American region) Sao Paulo Santiago Buenos Aires 27 years of experience in logistics and transportation Access to key customers Rapid ramp-up and site buildout Leading consultancy in Latin America Immediate branding Unique content Offices in the region Focus on problem Global presence Deploy in Europe/Asia Second-to-none domain and region expertise Differentiator in content, new offerings, extensions In B2B, domain expertise is key... ...you have to be recognized a global leader ...across specialties , and industries ...and have long-standing relationships
Sources of revenue Total revenues of $10M and $32M for years 2nd and 3rd First, within-country transportation... Then, inter-country transportation... Last, third-party warehousing... ...charge 1% for raw materials and interfacility ...and 0.8% for distribution ...5%, 12%, 23%, 36%, and 52% share yrs. 1-5 ...yield revenues of 8.4M (1st) and 72M (3rd) ...charge 0.7% fee (about $11 per avg. Trip) ...capture market share with same diffusion ...3k, 10k, and 20k pallets (1st, 3rd, 5th yrs) ...average rotation of 10 days assumed ...2% fee on $8/month & $1.5/inout prices
How? Operations Strategy WHY MIAMI? Easy Access to Latin America Access to U.S. Talent Legal and Credibility Benefits Silicon Beach Factor REACH (1) Customers Agreements Country Managers & Key Staff Site Development & Deployment Customers in Each Target Market U.S.A. Miami Asia Mexico DEPTH (2) Site to Production Quality Large-scale Marketing and Branding Effort Grow Customer Base Define Vertical Strategy (4) LINK Integrate Geographically Horizontal/Vertical Integration Link to 3rd Party Marketplaces Build a Collaborative eHub Europe SCOPE (3) Breath of Services Critical Mass in Key Markets Leverage Horizontal Footprint Expand to Vertical Markets (Alliances) Brazil Chile Argentina Asia Four phase Operations Strategy Link: Integrating Into a Global eHub Scope: Expanding to Vertical Markets Depth: Strengthening Client Relationships Reach: Establishing Pan-Regional Presence HQ in Miami...
Financial needs HQ + ARG + BRA HQ CHI ARG BRA MEX CHI + MEX Officedeployment Miebach offices Own offices $1.8M $1M $750k Milestonesand Money Presence in HQ, MEX, ARG, BRA, and CHI. Site with long-distance transportation –TLD- (beta) Site with TLD + distribution. Contracts in all four countries Site with TLD, distribution, and 3PL. In addition, own offices in five key locations. Last, transactions in all markets and brand awareness Employees
Contact information Thanks for your time! If you are interested in partnering with us as an investor, a technology partner, or a strategic ally, please contact: Luis Blando lblando@letscargo.com 617.623.8523 • If you would like to join our engineering team, please contact: Juan Gonzalez jgonzalez@letscargo.com • If you would like to join our marketing team, please contact: Edwin Elberg eelberg@letscargo.com