Canada's and the world's first-ever low-cost customs brokerage and shipping company. www.gogobrokers.com (currently in beta-mode with 200 users and no advertising)
We should see $100 million in revenue within 2 years of full scale launch after creating a fluid API, Mobile App, or Browser Extension
PPU: Parcel Pick Up
DDP: Delivery duties and taxes pre-paid
DDU: Delivery duties and taxes unpaid
Broker: Performance Logistics under the Lynden International brand
The Team
1. Contracted developer: Tobias Tan from Vancouver British Columbia - Full-stack developer with 10 years of experience, AI coder, React coder.
2. Marketing specialist: Cole Pisiak from Vancouver British Columbia - Has an advertising network of 300 million subscribers on Twitter, Instagram, Snapchat, and Facebook.
3. Logistics advisor: Harvey Gill from Vancouver British Columbia - 15 years of international shipping experience. Currently CEO of Asenda (DBA www.Reship.com)
What we've created
The system presented works with a USA Oregon-based, TSA-approved bonded customs broker. Simply put: we have created a mass consolidation method of parcels being delivered to residential customers. Our model is a compliant system for Canadian imports under CBSA regulations.
Our goal is possible because we have a negotiated price of $2.00 USD per customer, $2.00 USD per HS code, a $0.31 USD per pound delivery from Portland Oregon to Surrey British Columbia. This gives us disruption-level pricing if we have an easy-to-use system for the target audience.
Large carriers (UPS, FedEx, DHL) charge anywhere from $20 to $100 for brokering services on top of the label cost when delivering to Canadian consumers. There are pre-pay options, but most of the time the duty and taxes are collected at the door with the package held hostage.
DHL is under fire this month with a lawsuit for ‘hidden’ brokering fees. DHL is taking most of the blame, but in my experience, UPS charges much more than DHL.
PPU businesses are in trouble….
Offer Canadians the most affordable and convenient method to import their packages.
Company philosophy and vision
Upfront quotes to customs declaration. (unlike large carriers who offer COD with sticker-shock pricing whiling holding packages hostage in your face.
We target local consumers by partnering with PPU businesses in WA state, then develop a service that all Canadians can use for parcels in transit not shipped by our partnered businesses (example: John ordered an item from eBay and can use our service to pay for customs duties and or taxes before it arrives in Canada)
Company goals
The immediate and short-term goal is to capture all parcels stranded in Blaine WA (approx. 150,000 parcels), then expand to all border town PPU businesses coast to coast starting with Ontario residents. Eventually, we create a self-serve website like our competitor
www.borderbuddy.com and offer it to all Canadians nationwide.
Target market
Canadians who import (order online) consumer goods from the USA
Industry
The logistics industry has grown 10 fold since Covid-19 disruptions began in early 2020 and continue to see growth. With border closures, all PPU businesses have been impacted with a backlog of packages and many have subsequently closed their doors for good with the inability to pay their lease. Some landlords are forced to hold the parcels and wait for the US borders to open up for personal shopping in order to collect payment for rent loss. If the border opens in May or June, we will have missed the opportunity to capture this backlog. Our competitors are charging a minimum of $50 CAD plus shipping per clearance request.
Competitors
*other than UPS, DHL, and FedEx...
1. www.borderbuddy.com
2.www.clearit.ca
3. https://www.aacb.com/
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