CROWDESTOR is launching the fundraising campaign for the Maintenance & Repair Solutions platform for Logistics Companies, Round 01.
This is an opportunity to invest in IoT platform and make a profit of 30% p.a. The total funding target in this round is 60 000 EUR.
The funds will be used to finance the development of a platform that brings together logistics companies and vehicle repair services. It's an excellent opportunity to tackle long-existing industry problems and reduced maintenance and repair costs for vehicles, elevate workshops service quality, speed up the repair process. This all will have a positive impact on reducing deliveries delays and lower delivery costs all over Europe. Information about the borrower can be found in the attachment.
|Maximum target:||60 000 EUR|
|Loan period:||18 months|
|Interest rate:||30% p.a.|
|Repayment:||Interest and principal in full at the end of the Loan Term|
|Collateral:||Commercial pledge on intellectual property|
Remember - interest rate payments start calculating from the day you make your investment!
Freight was transported across some 1 708 billion kilometers of European roads and is the most popular logistics in Europe. A vehicle usually might break down in about 15 000 kilometers, which includes approximately 106,75M; the most prevalent problems like brake system issues, cooling system failure, tire pressure problems, lost keys, etc.
Problems each logistic company faces every day:
The Maintenance & Repair Solutions platform for Logistics Companies will tackle all those problems.
This platform will introduce transparency into the vehicle repairing process, pricing, and providers' reputation. The new system is intended to become an environment for direct communication with much better functionality that will ease and speed up the process significantly.
Direct communication will have a positive effect on service fees and other indirect costs, due to ranking system introduction and communication flow optimization (elimination of a call center staff).
Ranking and repair history will help to standardize processes and bring more trust into carrier-service relationships. This will have a positive effect on competition in the market ensuring better quality and price policy. The ability to oversee service partners in the area would allow clients to choose the closest or the most convenient route provider, thus reducing the environmental impact of empty kilometers.
Faster solutions will allow to decrease downtime as well as avoid forced assistance (by road authorities or police).
There are many traditional companies in the European market that offer a wide range of assistance services: repair in workshops, roadside assistance, towing, fining payments, and hotel booking for drivers. These are offered by official dealers such as "Volvo Action Service, Mercedes S24h, etc., and multi-brand services. Official dealers are licensed to carry out guarantee repairs (this is relevant while the vehicle is still new). The standard full warranty for commercial vehicles is only 1 year and they have limited payment options (prepayment, specific payment cards, etc.).
Multibrand services collaborate with official dealers as well as independent workshops, which makes the selection wider and the costs lower. Some of these services include collaborations with insurance companies, subscriptions, and pay-per-use dealings. Geographically they offer their services in all of Europe, but often forward and sell applications to smaller companies that provide services in their local market or in 2-3 countries. In this case, the client has to pay double commission (to each service provider).
There are a few similar companies that operate in Europe, offering assistance to freight transport, but each one differs into a specific field of the market. They also collaborate with workshops throughout Europe, but mostly concentrated in Germany and mid-Europe. We offer to expand to East and West Europe as well as Russia and Northern countries. Also, none of the mentioned companies offer the services our platform will as they concentrate more on just some of the fields in the market such as roadside assistance, vehicle insurance, and scheduled vehicle maintenance. Based on cargo flow, competition, and service pricing, Benelux and Nordic countries are suggested as a starting point for service network development.
One of the companies that offer somewhat similar services is the Truck Repair platform TRAVIS. They offer vehicle repairs in one of their 330 workshops throughout Europe such as roadside assistance and simple repairs, but also vehicle maintenance and truck parking. The issue is that this company concentrates mostly in Germany but offers only a few workshops in other countries like Spain and Italy. This means that they cannot provide quality services throughout Europe equally. Their biggest partners are XPO Logistics, LKW Walter, and Kreiss.
More traditional companies are Service24 and Falck. While Service24 provides assistance services such as breakdown services, towing, security services, or other emergency services, and to provide clients with expert advice throughout Europe, Falck offers roadside assistance and car service subscriptions as well as different emergency services - emergency medical services, patient transportation, industrial and public fire services, travel assistance, etc.
Urgently, Encore Protection and Verizon Connect are more roadside assistance companies that offer instant help that does not require workshop tools (tire changes, lost keys, jumpstarts, overheated cooling systems, etc.) and also offer towing services to the nearest workshop. After that, the client deals with the workshop separately. Urgently and Encore Protection work similar to Uber but with roadside assistance, meanwhile, Verizon Connect offers GPS tracking tools, proof-of-delivery, and roadside assistance is just one of the services offered. These companies offer subscriptions to simple roadside assistance services with fixed prices for each service.
There are 6,2 million heavy freight trucks and 28 million light freight vehicles, that is 34,2 million vehicles each year drive 1 708 000 000 000 kilometers of European roads.
To calculate the average for how many repairs one vehicle needs per year, 1 708 000 000 000 km (total distance of freight transported in Europe) divided by 34 200 000 (total of vehicle units registered in Europe) equals 49 941,5 km (the distance one vehicle makes in a year). Presumably, a vehicle usually might break down in about 15 000 kilometers, which means that the vehicle needs about 3 repairs a year (This number might change due to the age of the vehicle and distance driven in a year). Furthermore, if we assume that a vehicle needs 3 repairs a year, for all the vehicles registered in Europe, the total amount of repairs throughout Europe would be 102 600 000.
Assuming that 5% of all repairs would be done through the Maintenance & Repair Solutions platform for Logistics Companies and the platform's commission for these repairs is 1% (one repair costs 300 EUR), the turnover would be approximately 15M EUR.
More precise calculations can be found in the attachment.
There are 6.2 million medium and heavy commercial vehicles on the EU's roads. Counting almost 1.2 million trucks, Poland has the largest fleet, followed closely by Germany (1,010,742) and Italy (946,393). More than 28 million vans are in circulation throughout the EU. With 6 million vehicles, France has by far the most prominent van fleet, followed by Italy (4.2 million vans), Spain (3.8 million), and Germany (2.8 million)
The average age of light commercial vehicles in the EU is 11.6 years. Spain has the oldest van fleet among the EU's four major markets (13.0 years), followed closely by Italy (12.6 years). Trucks are on average 13 years old in the European Union. Greek trucks are the oldest in the EU (21 years + ). The newest trucks are in Austria (6.4 years). Older commercial vehicles have a more significant risk of breaking down more often. That will be taken into account while implementing the platform in different countries.
The global vehicle roadside assistance market was valued at over US$ 21.4 Bn in 2020. It is estimated to expand at a CAGR of 5% from 2021 to 2031. A rise in demand for personal vehicles is expected to increase vehicle density in larger cities. An increase in traffic congestion coupled with a human error during driving is anticipated to increase the probability of vehicle collisions. This, in turn, fuels the demand for vehicle roadside assistance services, thereby driving the global market.1
In 2020, the European road freight market was sized at 324.5 billion euros. Forecasts for 2021 suggest the market to increase even further, climbing to around 340 billion euros. This growth is in line with the positive trend recorded between 2010 and 2020. Figures had seen year-on-year increases in every year except for 2012. By the end of 2021, the road freight market will have seen an overall increase of 23 percent compared to 2010. Denmark's Maersk Group was the greatest performing European company, ranking fourth with over 34.8 billion euros.2
The International E Road network consists of 150 000 kilometers of road including every important regional road in Europe. This network connects important locations across Europe as well as Ireland and Russia. Repair workshops are available about every 30 to 50 kilometers, which is at least 3 000 to 5 000 repair workshops across Europe. On a more general level, only 18% of European garages are Original Equipment Services (run by car dealers), while 82% are independent aftermarket operators (these include multibrand and franchise workshops). Our aim would be to cooperate with multi-brand repair shops as well as franchise workshops as they are more trustworthy for both the platform and the customer.3
The total number of Logistics companies in Europe is 4 032 826. Russia is the largest country with an 18.29% market share in the European logistics industry (737 655). Second is France with 426 843 logistics companies in Europe (10.58%). Poland also has a large number of logistics companies: 360 020. These three regions combined have a 37.8% market share in the total European logistics industry. This indicates the large number of logistics companies that could be our potential clients who seek transparency in their dealings with vehicle maintenance and repair costs.4
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