“I’ve never seen a larger market opportunity”
These are the words of Hadi Partovi, an early investor in Facebook Inc., Airbnb Inc., and Dropbox Inc.
He is also an early investor in Convoy, a company that aims to disrupt the 700 billion dollar trucking industry in the US.
The truck drivers have a problem: their trucks have empty space in them.
The customers also have a problem: their parcels and packets are on their hands, not on their customers’.
So, in order to profitably solve this problem, several startups in Silicon Valley have taken the initiative to disrupt traditional ways of exchanging information between truck drivers and their customers.
According to Wall Street Journal, the newcomers are targeting full truckloads, but especially smaller shipments of a pallet or large box.
The company mentioned earlier, Convoy, is enabling companies looking to ship goods locally to order a job on its website, get an instant price and track the shipment in real time.
What does all of this (hopefully) lead to?
It’ll mean that trucks are fuller more of the time and the shipment routes will be shorter and more efficient.
Truck drivers will discover new opportunities to grow their bottom line, customers will get a better deal on their shipments, and the end-user will get their products faster.
If this works for one truck, it will work for a FLEET of trucks. And when the benefits accumulate from one truck to another, it will quickly translate into 1) vast savings in costs, 2) competitive advantage through faster and cost-effective shipments, and thus, 3) way happier customers.
Obviously, a company acting as the aggregator of all that data is needed. But so is something else…
As the “Safe Harbor” pact was dissolved a short while ago, privacy concerns are obviously important.
But here’s the most important aspect in all of this: velocity.
There will simply be no time at all to do time-consuming data crunching when the truck drivers are on the road. They need to know immediately where the opportunities are, otherwise they might be missed altogether.
If your fleet is deployed to communicate with your customers – even to some degree – then this might be for you. We have already tipped our toes on such projects, and we can assure you that the cost-savings and the increase in efficiency is VAST. It is unbelievable how much opportunity there is in optimizing the delivery routes, communication models, etc.
Would you like to learn more? Send us a message, here. Let’s see how you could tap into this as well.
COO, Service Delivery
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