#1CONVOY Reinventing local trucking Confidential#2Trucking 101 Shippers Dispatchers/ Brokers Local trucking Mei 3 Long-haul Carriers DO BA Confidential#3Trucking in the U.S. is a huge market $12 trillion Value of goods transported by carrier via trucks Sources: DOT, trb.org, truckinfo.net * Includes for-hire and private fleets $800 billion $225 billion Overall and local spend on trucking carrier services* NA NA NA NA NA MA JA NA MA MA NA MA MA NA MA 1.2 million Carriers that operate 3 million trucks "Our freight system is the lifeblood of the American economy." Ray LaHood, U.S. Transportation Secretary Confidential#4But very fragmented, so connecting shippers and carriers is inefficient Nearly all trucks are owned by small carriers 3.0m 2.7m Sources: truckinfo.net, trucking.org 0.3m Only 10% belong to top 20 carriers 90% belong to the remaining 1.2m carriers 5 Cost to connect shippers to carriers $70 billion "Dispatch takes 40% or 50%" Jon Reyes, local driver "Brokers get a lot, at least 20%." Sasha, long-haul driver Paid to middle- men annually Confidential#5Despite the opportunity size there are relatively few startups focused on commercial trucking in the U.S. Games Fashion $billion/yr $20 # startups 2,736 (AngelList) $235 2,015 Telecom Startup competition in trucking is limited, 1/20th other big US industries. Sources: angel.co, Statista, Pyramid Research, Global Strategy Inc., imap.com $406 1,234 7 Trucking $800 30 Food & Beverage $1,100 2,024 Confidential#6Problems faced by local shippers Reliable access to trucks Short notice jobs 45% dispatch fee High prices Multiple systems and processes Low visibility Fax, phone, paperwork, email B "We use Sharepoint and handwritten logs to manage hundreds of shipments per year." - Nathan Smith at McKinstry construction materials#7Problems faced by local carriers Half-full or empty trucks Out of the way jobs Slow pay 45% dispatch fee Little trust in middle-men Fleet tracking Fax, phone, paperwork, email A. "There's an us-vs-them mentality with dispatch brokers...doesn't seem to be a lot of willful cooperation." - Ken Brooks, Seattle truck driver#8AT&T BURGER KING $ 3:00 PM WELCOME. JOHN COUPONS REDEEM YOUR COUPONS ► 1 100% FIND YOUR BKR FIND LOCATIONS ► MENU BROWSE OUR MENU ► MOBILE PAY MANAGE CARDS & PAY GET A FREE ANDROID SMARTPHONE TM NEW OR UPGRADE 2 YEAR ACTIVATION REQUIRED CHECK OUT THE PHONES BURGER KING#9Why didn't this happen 5 years ago? Truckers didn't have smartphones; won't use 2nd phone GPS accuracy outside of urban areas 12 ((cp)) Data coverage outside of urban areas Confidential#10We've learned a lot. We can be efficient at spending additional capital to reduce risk, to grow faster, and have unfair advantages. We learned about the business and customers Pricing and dispatch are key Small carriers accept 25% less What carriers and shippers value Carriers can scale their fleet with Convoy Key feature requests: multi-stop, stackable, default times We developed a core growth plan/playbook New market playbook vl New job = new carrier in hours Do "test loads" over $ bonuses 5 plays for converting shippers Low margins + reinvest; cheaper to gain share today than in future Price and SLA like we're scaled 15 We identified bets to accelerate growth Freemium TMS for Shippers Acquihire brokers Faster product cycles; faster feedback loops National deals that solve half of marketplace Confidential