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May 31, 2016 7:52 EST

Trouble Free Home Delivery: BagHitch makes delivery of all items, small to bulky, simple

iCrowdNewswire - May 31, 2016

BagHitch – Trouble Free Home Delivery

 

 

Elevator pitch

 

BagHitch makes delivery of all items, small to bulky, simple. Never before has it been possible for individuals to book delivery with a few easy clicks – it is cheap, insured and with a rated driver. And best of all: It is always door to door. With 20% growth month by month, we are confident that we are on the right track!

 

 

Investor proposal

We offer 10% more shares if you invest before the public round (May, 26th).
The shares issued are B-shares.
 
The transportation industry is rapidly changing. During 2016, BagHitch has experienced a 20% monthly growth. We are ready for the next steps in development and to expand into new markets
 
Why should you invest?
 
  • BagHitch is unique on the market
  • The company has margins at 70% (2018)
  • Proven traction and a monthly growth by 20%
  • BagHitch is ready with an app that can be scaled easily, pre-studies done on two markets

Idea

The problem this product solves

There are millions of items for sale on marketplaces and online auction houses, in Sweden alone there are 500.000 bulky items for sale everyday. Many items are never sold, even if there are potential buyers, due to lack of transportation. Transportation of online purchases is considered difficult or even impossible with traditional companies. It is not a transportation capacity issue; on the road 1/3 of all trucks are empty and 55% of cars have one person in them.
 
BagHitch connects the need for delivery with empty vehicles making transportation. Easy no matter size, safe, environmentally friendly and door to door.
 
 

How the product solves it

We solve this problem with a marketplace for transportation. It is a system which connects drivers that are either on the road or are planning a trip with people that need something delivered. People can post and pay for the items they want delivered, drivers can post routes and find a match.
 
By tapping into the sharing economy by using unused space in vehicles, BagHitch helps people deliver items to a great price, simultaneously as the driver gets paid and thereby reduces his or her overall traveling costs.
 
 
 
 
 
 
 
 
 
 
 
 
 

Product

Product features

The marketplace offers smart matching of drivers and senders, as well as a safe payment system and insurance for the items being transported. On top, the platform has a rating system to make sure the system is trustworthy. By making sure service, information and guaranteed payment exist, everything is done effectively through BagHitch – no external sites or solutions are needed.
 
 

Product use cases

70% of shipments come from online purchases of bulky items, from marketplaces and auction houses. 30% of shipments come from individuals sending them from one place to another, or to the scrapyard.
 
A sender is either: a) a private individual who has purchased an item online and is in need of transport or b) a professional seller that recommends a client to use BagHitch for delivery.   
Senders on average: 1.9 shipments last 5 months
 
A driver is either: a) private individual with empty space in the vehicle, or b) a professional driver.
Drivers on average: 4.4 pick-ups last 5 months
 
 

Market

Target Market

Transportation of bulky items is our core market (for now), from P2P market places and online auctions. Currently our main market is Sweden, but our ambition is to grow internationally soon.
 
Estimated Market Value
  • Germany €1150 M
  • France €880 M
  • Netherlands €230 M
  • Sweden €130 M
 
Of course, BagHitch also allows people to send items they would normally transport themselves, as the service suddenly makes it affordable to have someone else do it.
 
 

Competitive landscape

Today transportation is a jungle of companies, rules and regulations. There are a lot of companies offering transportation, but they are expensive, and reluctant to offer home delivery. In price comparison with DHL, Schenker, PostNord and Bring sending bulky items, BagHitch offer the lowest price and home delivery.
 
BagHitch is transparent when it comes to pricing; presents price immediately and adjust price in relation to attractiveness to drive an item. This is unique for the transportation sector.
 
 

Unique differentiator from competitors

It’s cheaper to send via BagHitch, it offers a high level of security, and you get the shipment to your door. As a driver everybody can take part, both professional drivers and interested amateurs, with the rating of drivers it is more important how you act and perform then your background.
 
 

Business Model

Company revenue streams

BagHitch charges a service fee on all transports made, currently 15%. Future revenues will come from sales of added insurance coverage and partnership.
 
 

Product/service distribution

BagHitch has a website, which is the only platform people need. One site, one quick solution.
 

Execution

Previous milestones/traction

  • Launch Alfa in October 2015 after extensive prototyping
  • Signed a one of a kind P2P insurance for goods in transport
  • Investment from VC Springfield
  • Backing funding from Almi Business Partner
  • 2.000 members 
  • 2.500 shipments inquieries (run rate yearly), +35% monthly
  • +20% transaction/month
  • 65 tons of CO2 saved, by smarter shipping and 37.000 kilometers not driven
  • Press coverage in all major magazines in Sweden; DN, SvD, DI, Veckans Affärer
 
Partnerships:
+ Car rental Hertz, www.hertzfreerider.se
+ Insurance company IF, www.if.se
+ Autionhouse Effecta, www.byraneffecta.se
+ Autionhouse Bålsta Auktionshall, www.baltaauktionshall.s
+ Marketplace Familjefynd
+ Marketplace Got2Get
 
 

Next key objectives

Strengthening the current partnership base and increase the number of partnerships. Our partners customers wants us. We can increase the service level for partners with an easy integration with our system
 
Number of partnerships, forecast
2016: 10
2017: 65
2018: 125
 
Driver user experience. A better driver user experience will create opportunities for increased number of drivers to join as the system is easily integrated in their daily work
 
Number of active drivers, forecast
2016: 150
2017: 475
2018: 1.650
 
 

Previous Financing

A combination of capital from investors and loans during 2015 financed testing, market research and the launch of the current platform. A small and agile team has shown that a lot can be achieved during a short period of time.

Partnerships

In order to create value to our users, a number of partnerships has been created. To name a few; Hertz, Bålsta Auktionshall, Effecta, Got2Get. All these partners focus on making the actual transportation of items seamless for the customers.

Use of Funds

The investments will mainly go towards:
1) Product development
2) Implement services
3) Marketing  
 
We believe that BagHitch can change the transportation industry. We are financially stable and are open for future acquisition or an IPO.
 
BagHitch have shown that consumers are in need of (and demand!) new ways of transportation. Together we can build something great on a white spot in a market worth billions
 
Want to get in touch before investing? Don’t hesitate to call or e-mail; [email protected] +46 708 338897
 
 
 

Team

 

Erik Wallin avatar small 

Erik Wallin
CEO
Erik has an extensive background from sales and marketing in the Swedish retail food industry. Last managing a team of 17 at Danone. Previously held positions include Key Account Manager responsible for a 2.5 BSEK business at Arla Foods and Nordic Brand Manager at Barilla. Passionate for finding solutions for white spots in the market he founded BagHitch in 2014. With knowledge from big corporations he has a new take on entrepreneurship applying processes and KPI:s from his previous experience. This ensures a steady development and road forward both for team and investors. ………………………………………………………………………………….. Want to get in touch before investing? Don’t hesitate to call or e-mail. [email protected] +46708338897 ………………………………………………………………………………….. See me on stage Liberalerna fd Folkpartiets Riksmöte, https://www.youtube.com/watch?v=UTo_wjDogD0 KTH or Royal Institute of Technology (50 min in…) https://www.youtube.com/watch?v=qMI6hNkJNMU&feature=youtu.be
 
 
 
 
 
Anton Holmquist avatar small
Anton Holmquist
CTO
Anton co-founded the internationally acclaimed mobile agency Monterosa serving as technical director. He has many years of experience from the digital industry working with numerous high profile clients and projects. Comfortable in the full stack including backend, web and app development. ………………………………………………………………………………………………………………………… Want to get in touch before investing? Don’t hesitate to call or e-mail. [email protected] +46703601168
 
 
 
 
 
Peder Ålenius avatar small
Peder Ålenius
Partner Sales
Business strategist, with focus on Sales with documented results of turnaround cases and growth in sales volume, staff and income. Specialized in strategy execution, business and sales development and increasing sales of existing and newly developed products. Excellent leadership skills, with focus on open communication, attentiveness, daily inspiration and result based development. Focus at BagHitch: Strategy execution, sales and sales management, telesales, salesforce.com, lead generation, process development and execution.
 
 
 
 
 
The Original Team avatar small
The Original Team
Tech Advisory
Way back in 2014 in a damp basement founder Erik meet up with three multitalented programmers to outline the first of its kind crowd shipping service. They were all passionate that this could create a better and easier future in transportation. They were front-end magician Samir Fors who has increased the attractiveness and user ability on hundreds of online services. Viktor Sahlström is a rare unique breed combing a professional business mind-set with backend excellent development skills. Third in the trio is knockout app developer Christian, successful entrepreneur and developer of Hanger. These guys are the Tech Advisory.
 
 
 
 
Our Members avatar small
Our Members
Awesome People
BagHitch started on a blank piece of paper. We did not know if there was a market, or a user base for this service. We want to take the opportunity to thank all our members that have made BagHitch a reality. You have shown that you are dedicated, passionate stakeholders in making transportation easy, cheaper and more assessable. By having an open dialogue with our Support Centre BagHitch have received hundreds of feedback to make the service a better fit with its user base. We will continue with this for future growth. Thanks!
 
 
 
 
Contact Information:

Erik Wallin

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