Hello LaneAxis Shareholders & Followers,
We’re down to the final few days of our campaign – and we’re determined to close out on time.
As part of our final push, we want to reveal a key ingredient of the “secret sauce” that will make the LaneAxis Transportation Network thrive and grow. We’ve held this concept close to the vest – primarily for competitive reasons. But the time is now to reveal our network growth plan in greater detail and give our shareholders one final opportunity to get in now.
Our strategy is based on a matchmaking model similar to dating apps – or perhaps more accurately – LinkedIn.
As you know, our FreightVISION product, set to launch next month, charges $.99 cents to track and automate the management of freight movements. This feature can be used by Shippers, Carriers, and even brokers. With millions of shipments taking place every day in the U.S. (via long haul, short haul and last-mile deliveries), capturing just a small percentage of those daily movements would net millions in monthly revenue for LaneAxis. And that’s just FreightVISION.
Now let’s scale up the revenue potential. Before FreightVISION can truly thrive, mission one is connecting Shippers directly to the 97% of small U.S. trucking companies that own 10-trucks or less, with 90% owning 6 or less. Nearly one million trucking “companies” are single driver, single truck “owner-operators.” This massive, scattershot collection of small Carriers – along with Shippers’ unwillingness to work with them for myriad reasons (including a lack of technology and tracking) – has led to the current trucking crisis in America, worsened of course by the COVID-19 pandemic. Most recently, trucking’s troubles have manifested in the form of organized independent Trucker protests in front of the White House and other locations, with Drivers furious about low pay, a lack of available freight, and a near industry-wide revolt against freight brokers who devour profits from Drivers and Carriers.
Enter FreightLINK, our premiere product. The concept is relatively simple. LaneAxis has tapped into its DOT database of 1.6 million Carriers, created "Carrier Profiles" for all of them, and geographically pinned them into our network map. See screenshot below.
From the network portal, LaneAxis will invite all 1.6 million Carriers to join for a monthly fee of $4.99 to start building their relationships directly with Shippers. Paying the monthly access fee enables network visibility so Carriers can send and receive invitations to connect directly to Shippers. Carriers complete their profile, which includes uploading their insurance certificate, Drivers’ information, and all other required documents. Now activated, the Carrier company will appear as a green-colored location pin on a U.S. map. Carriers who don’t activate their profile will also appear on the map – but will be greyed out. They can still receive Shipper invitations but have to pay the $4.99 monthly access charge to send or accept connection requests. The message to those Carrier companies is simple: if you’re not green – you’re essentially invisible - and you’ll miss out on direct freight opportunities.
Upon activation, Carriers will now have multiple ways to connect directly with Shippers:
· A Carrier can directly invite a Shipper inside or outside of the LaneAxis network to “connect” – and thus become part of that Carrier’s internal network.
· A Shipper posting a load can query the system based on multiple criteria and immediately see all qualified Carrier companies on the map. The Shipper can then send their own “connection invite” to the Carrier(s) that interest them – whether those Carriers have activated their profiles or not. Carriers who are active – and thus listed in green – will be more likely to receive requests.
· A Shipper can also look at a separate map displaying the real-time location of available Drivers working for Carriers with active profiles. This will also boost their chances of gaining direct freight.
· Carriers are now empowered to build limitless connections directly with Shippers, greatly boosting their chances of obtaining daily freight options.
· From their dashboard, Carriers will be able to query their Shipper list for freight and electronically submit their rate.
· Once the rate confirmation comes to the Carrier, FreightVISION takes over and complete visibility is accessible by both the Shipper & Carrier.
Once a “connection” has been made (again think of dating apps or LinkedIn), all the Carrier has to do is accept the Shipper’s contract and the two are ready to do business.
So where does the revenue come from? Carriers will pay a $4.99 monthly recurring subscription fee which we will aggressively market to gain all 1.6M Carriers, and this particular feature will be free to Shippers.
Here are the important points to remember in this model:
· Currently Shippers, brokers and mega Carriers (comprising 3% of the trucking sector) hold all the power in freight transportation. The LaneAxis model gives power back to the 97% of small trucking companies struggling to survive because of their inability to obtain direct freight, especially from large Shippers, as well as small Carriers' begrudging reliance on revenue-draining load boards and freight brokers.
· At a price point of just $4.99/month, small Carriers will jump at the chance to have their profile visible in a vast transportation network that gives them potential access to direct freight. Currently, freight brokers snatch between 20-50% in fees for their managed services. On a $1,000 load – that’s at least $200 pulled out of the pockets of carriers. Compare that to $4.99/month.
· We anticipate within 1-2 years signing up 50-70% of the 1.4 million trucking companies owning 10 trucks or less. On the low end of that estimate, that’s 700,000 companies paying $4.99/month, equaling about $3.5 million in MRC (Monthly Recurring Charges).
· The ability for Shippers to invite Carriers – or Carriers to invite Shippers – to join their respective networks is a gamified, proven, and incentive-rich technique.
· The use of Artificial Intelligence (AI) will generate emails featuring “suggested matches” – much like LinkedIn, Facebook and dating apps.
· Much like its massive database of Carriers, LaneAxis has hundreds of thousands Shippers in a separate database. Carriers can pursue connections with Shippers either inside or outside of the LaneAxis network – but once the connection is made – the Shipper is now officially a member of the LaneAxis platform.
· Our partnership with AAOO and its 25,000 Carrier members and 100,000+ Drivers will automatically populate the map and ignite interest from the get-go.
· Large Shippers – from Walmart on down – will no longer fear working with small Carriers because all freight management processes – from document and contract management to real-time tracking – will be almost fully automated and exempt from costly and error-prone manual processes. Thus a drastically reduced need for brokers.
These numbers are big and bold and entirely feasible. That’s because this matchmaking network is unlike anything the industry has seen, and LaneAxis already has already built the infrastructure, partnerships, and expertise to make it happen. Obviously we could go on about the potential, but we wanted you as Shareholders to have first insights into the industry-first direct network & the potential revenue that lies ahead. Target date for opening the direct network is July, 2020 - Q3 at the latest.
LaneAxis has already built the infrastructure, partnerships, and expertise to make this happen - and it will happen. Remember friends, just a few days left to own the maximum stake possible in LaneAxis at this price.
Be well everyone.