The Days Of Doing Business Without FreightTech Are Numbered
Aaron Levie, the Co-Founder and CEO of cloud storage specialists Box, sent out a very interesting tweet yesterday:
It’s interesting in two ways.
First, even the best can forget how to count (look at the tweet again).
Second, and much more importantly, his tweet calls out a pattern familiar to all of us in the business of transforming the way companies do business — larger companies cannot cope with the pace of change and constantly have to pay a premium to catch up.
At Kontainers, we are seeing this pattern repeated again in the Freight Industry — an industry facing once of the largest changes in decades to how business is done. This change is being led by the larger companies in the industry and, importantly, small and nimble digital startups.
Let’s look at some more numbers:
In 2018 so far, four companies alone have raised $374 million, bringing their their combined value to over $759 million:
Flexport — $100m ($304m total)
Convoy — $185m ($265m total)
Freightos — $44m ($100m total)
Project 44 — $45m ($90m total)
Obviously there has been dozens more sizeable investments in the FreightTech space and these can be broken into two general categories: ‘Disruptors’ or ‘Enablers’.
Both businesses are focused on a technical, customer centric experience, but on a very high level, ‘Disruptors’ want to eat some of your market share and ‘Enablers’ are here to help guard it.
So, to reiterate from the graph above, to add this digital layer the modern customer is expecting, shipping brands now have three options:
- Aquire a Disruptor
- Partner with a SaaS company
- Go in alone
The third option, to build in-house, is by far the most difficult in any industry.
A recent World Economic Forum Report showed that managers will spend up to $1.2 trillion in 2018 alone on efforts to digitally transform their companies, only about 1% will achieve transformation at scale.
Now, look at your company and think about where it fits into Aaron’s tweet.
Are you at stage 2? “Politely No, that technology would never work here”
In that case you may already be too late.
How long do you think it will get to stage 7? “Well this is compelling”
The longer you take to address the threat from the multi-billion dollars of investment going into digital transformations and FreighTech startups, the less likely you business will be able compete, adapt, or even survive.
Don’t be a number 3, don’t get left behind.
Kontainers is a customisable, client-facing, execution platform for Freight Forwarders, deployed in an unbeatable timeframe, and with a proven track record of multiple on-time deliveries for 4 of the top20 Shipping Brands