CargoLink

Over het initiatief / About the initiative

CargoLink

In welke fase zit jouw initiatief? / In what stage is your initiative?

Ideefase

Heb je jouw initiatief al gevalideerd? / Did you validate your initiative?

We created the MVP but it’s missing the match-making algorithm.

Meer informatie over jouw initiatief / More info about your initiative

How many packages do you receive every month? In the Netherlands alone, there are close to a million delivery vehicles and tens of thousands of drivers delivering millions of packages, resulting in metric tons of carbon emissions. The world is trying to solve this environmental issue, and CargoLink aims to contribute significantly to this effort.

The idea originated from observing that delivery vehicles in Europe are not always full. These vehicles often drive unnecessary kilometers, burning excess fuel and consequently harming the environment. Would it not be marvelous to have a way to fill up this unutilized space, thereby protecting the environment and treasuring our time?

CargoLink addresses these challenges head-on with an innovative solution, introducing a web platform that optimizes surplus cargo space in existing delivery vehicles. By connecting businesses and individual consumers with professional drivers, CargoLink facilitates a more effective, efficient, and environmentally friendly transportation system. In an era where sustainability and efficiency are preeminent, CargoLink emerges as a game-changer in the logistics and transportation sector. 

CargoLink’s mission is crystal clear, the company aims to enhance transportation efficiency and minimize environmental impacts. By leveraging technology and fostering strategic partnerships, CargoLink’s objective is to build a robust network of users and drivers, ensuring seamless operations and exceptional customer experiences. As we look towards the upcoming years, CargoLink is creating a win-win-win scenario for clients, drivers, and the planet. Welcome to the future of sustainable transportation.

A web platform that enables businesses and individual consumers to pool existing transport vehicles for effective and sustainable transportation, through drivers who wish to improve their space efficiency, and maximize their income.

Wat is er anders/nieuw aan jouw idee/oplossing t.o.v. bestaande oplossingen? / What is different/new about your idea/solution compared to existing solutions??

CargoLink optimizes surplus cargo space in delivery vehicles to revolutionize the logistics and transportation sector, by offering a sustainable alternative to traditional transport. The initial idea has been transformed into a realistic business concept through the lean start-up process by continuously improving based on input from experts and potential clients. Said approach involved developing and testing our MVP, gathering data from interviews, and refining our business concept to successfully satisfy market demands. 

CargoLink is an innovative web platform designed to optimize the utilization of surplus cargo space in existing delivery vehicles, therefore revolutionizing the logistics and transportation sector. Our platform is designed to connect businesses and individuals with professional drivers who have excess space in their vehicles, creating a more effective, efficient and environmentally friendly transportation solution. By facilitating the collaborative use of surplus cargo space, CargoLink minimizes the number of vehicles on the road, and lowers carbon emissions, traffic congestion, and noise pollution. Our mission is to maximise the efficiency of transportation by making it cheaper, faster, and more sustainable.

Drivers can use our platform’s user-friendly website to share their daily routes, pick-up locations, and available cargo space. The unused space can then be reserved by businesses and individuals for their packages. The website will be used for matching and tracking. Alongside this, strategic partnerships and social media marketing will be established to expand our reach. In terms of target customers, CargoLink focuses on businesses with occasional transportation needs, individuals in need of fast reliable delivery services, and professional drivers looking to maximize their income. By doing so, it offers a win-win-win situation for clients, professional drivers, and the environment. 

A thorough market study and feedback sessions with experts and prospective clients have confirmed the desirability of CargoLink. Respondents deemed our concept as innovative and engaging. The business idea attracts customers because of its affordability, speed, and environmental sustainability. Furthermore, the ongoing feedback system and ongoing customer assistance build trust and long-term connections with users, whilst establishing a strong brand reputation.

The feasibility of CargoLink has been carefully constructed to guarantee seamless operations. Specifically,  a working platform is demonstrated by the creation of our MVP, a user-friendly Wix website. The main features include real-time tracking, smooth payment processing, and route optimization. However, in order to respect legal compliance, CargoLink will need to be formally registered as a Limited Liability Company (LLC), with the Chamber of Commerce (Kamer van Koophandel) to obtain the relevant licenses and guarantee GDPR data protection. Also, the team will have to outsource knowledge to create a matchmaking algorithm, which will be essential to the platform’s operation and efficiency since it matches senders with compatible drivers.

Cargolinks viability is ensured through a robust business plan with three primary sources of income. Our subscription revenue model targets professional drivers. To access our platform and obtain delivery assignments, they must pay an annual fee. With our commission revenue model, the package senders are billed a percentage of the transportation cost for each delivery. Additionally, the entrepreneurial idea also plans to implement a commission on transport costs for professional drivers in the future. To support growth, this commission will be waived for the first three years post-launch and reinstated afterwards, once the company’s value is established. Next to this, we provide optional package insurance, which covers any damages during transportation. The generated revenue will be used for salaries, platform development and maintenance, marketing expenses, and regulatory compliance costs. CargoLink is intended to break even within two to three years, with a projected revenue of over €3.5 million within the first five years. The prospected revenue, along with strategic partnerships and a gradual increase in professional driver fees, guarantee a profitable and long-lasting business. 

Wat zijn jouw volgende stappen om het verder te ontwikkelen? / What are your next steps to develop the initiative?

• Cargolink’s implementation plan consists of three distinct phases, spread over ten years, namely the building of a large network of drivers, the revenue gap, and lastly the European expansion.

Building a large network of drivers (2025-2027)

CargoLink’s first objective is to enter the market in January 2025, concentrating first on Rotterdam. To ensure this implementation, developing the algorithm matching package senders and professional drivers is fundamental. Since the team lacks technological expertise, this step will be outsourced to guarantee quality. Whenever the website with the algorithm is finished, CargoLink will be able to proceed to the next phase, which is to assemble a sizable pool of professional drivers. There are three key reasons why this is seen to be the most important step. First, it is the core of our business plant. Second, it contributes to the reputation and ensures a strong brand image, as it underlines the trustworthiness of our brand. Lastly, it will increase the attractivity for package senders. Having multiple drivers available ensures the speed of delivery promised to the package senders. A comprehensive action plan has been created to ensure its execution. Attracting the base of drivers would be the first task to do. The idea will be introduced to the executive committee of PostNL, PostNL being the biggest delivery company in the Netherlands. Then, CargoLink would encourage them to join by providing financial incentives, such as a one-year free trial. As their barriers will be reduced, one can expect a positive answer from the drivers. A win-win situation is created, which only results in higher earnings for the professional drivers. The number of professionals is forecasted at 30 during the first year and is expected to grow throughout the years.

Growth in revenues and financial freedom (2028-2029

. Consequently, diversification of revenue models is scheduled to begin in 2028 in order to safeguard consistent growth and get ready for the final phase, European expansion, which requires significant upfront investment. Two new revenue streams are planned; an advertising model on our website and a commission-based model for professional drivers, amounting to 4% of the transportation costs. In fact, advertising is described as a stable source of revenue. The consequent gap in revenues is reflected in the revenue breakdown. 

 International expansion (2030-2035)

Now that the business is well established with a strong brand reputation, it is time for CargoLink to penetrate a new market: Germany. Due to the high complexity of the algorithm and the time needed to build a large network of drivers, the focus would be only on Germany. With its high interest in sustainability, the presence of reputable delivery companies such as DHL, and the small culture gap between the two cultures, Germany is the best option

Wat heb je nodig om (nog meer) impact te maken met dit initiatief? / What do you need to make (more) impact with this initiative?

As a novel concept, CargoLink faces some uncertainties regarding customer acquisition in the early stages. However, we plan to mitigate these risks effectively with two strategies: 

Firstly, through strategic partnerships. CargoLink aims to collaborate with local businesses to introduce our company, leveraging their networks to reach both private and professional users.

 Secondly, To attract our initial user base, we will offer a temporary free trial to our early customers, allowing them to experience the benefits of CargoLink firsthand. 

By implementing these strategies, we are confident in our ability to successfully penetrate the market and build a strong foundation for future growth.