LaneAxis, Inc.

Already growing fast in the market and collecting revenue, LaneAxis is trailblazing a new path forward for the fractured $12 trillion global supply chain, with an immediate focus on the $1 trillion U.S. freight industry. The LaneAxis mobile app and desktop platform is a complete freight transportation ecosystem whose primary focus is connecting shippers (manufacturers) directly to carriers (trucking companies), eliminating the need for costly and often unscrupulous freight intermediaries such as brokers, which consume up to $200 billion annually in commissions. That money comes directly out of the pockets of hardworking truck drivers across America – specifically the 97% of the trucking industry comprised of small “mom and pop” shops owning just a handful of trucks, and in the case of many owner-operators, just a single truck.

 

Much like Netflix knocked out Blockbuster, travel apps like Expedia knocked out brick-and-mortar travel agencies, and investment apps like E*Trade eliminated the need for stockbrokers, LaneAxis realizes the power of the DIRECT MODEL can and should be applied to the freight industry. There is simply no need for shippers to utilize freight brokers, as they operate based on an obsolete business model that will eventually go extinct. By empowering shippers and carriers to do business directly, the entire supply chain wins – right down to the consumer in the form of lower prices. The long overdue direct model in transportation will eliminate massive broker margins of 20-60%, greatly help reduce the 28 billion empty truck miles driven in the U.S. every year, and streamline an industry that lacks transparency, trust and efficiency. No more phone calls, no more faxes, no more catastrophic supply chain disruptions triggered by predictable or unforeseen emergencies such as pandemics or natural disasters. LaneAxis is singular in its holistic and comprehensive approach to transforming the outdated supply chain into a worldwide digital network and transportation marketplace, forming the bridge between the freight industry and Web 3.0.

 

The front end of the LaneAxis platform is similar to LinkedIn, where two businesses or individuals can “connect” with each other based on common attributes and objectives. Just as in LinkedIn, the goal is for both shippers and carriers to have their own private “networks.” In this case, a shipper can now have a private, “on-demand” fleet of independent carriers across the country ready and willing to haul their freight. Carriers are vetted and their performance closely monitored to ensure only the best of the best are hauling a company’s cargo. Similarly, a carrier can now have their own on-demand shipper network, giving them the ability to bid directly on freight, negotiate fair pricing, and upon a successful delivery get paid quickly. Unlike opaque brokers which are largely unregulated, the driver knows exactly how much he/she is getting paid and when (generally within 24 hours of uploading a signed proof-of-delivery). 

 

This is a game-changer in myriad ways. First, shippers have complete and total real-time visibility over their freight. Until now, a shipper utilizing a freight broker would have to call that broker, ask where their load is, wait for the dispatcher to call the driver, ask the driver where he is, trust that the driver is telling the truth, then report back to the shipper. Not only is this tedious, it is often unethical and inaccurate. LaneAxis, on the other hand, tracks a driver from 6-hours prior to pickup all the way through final dropoff. All waypoints and milestones are geocoded, so the shipper knows exactly where their load is at all times. All shipment documents are uploaded and stored directly to LaneAxis’ private blockchain and immutable ledger, ensuring the documents are authentic and cannot be tampered with. The customizable network smart contract automates much of the shipment lifecycle, allowing the shipper (in most cases) to essentially sit back and track the progress of their load.

 

To those who play “devil’s advocate,” arguing that brokers take away headaches for shippers by handling all the heavy lifting – that is a flawed argument. First, freight brokers need a chaotic freight industry to justify their existence. There is absolutely zero incentive for freight brokers to help build a streamlined and efficient supply chain. That would render them obsolete.

 

Second, shippers still have to deal with broker headaches by devoting resources and overhead to monitoring these “managed services.”  LaneAxis can have products moved faster and more transparently with fewer people needed in a shipping company’s transportation department to track it all. And as for final cost, LaneAxis has them beat too. 

 

For example, let’s consider a shipper needs to move a truckload of product 500 miles. The broker might negotiate a rate of $1,000 to move that load. The shipper agrees. The shipper then turns around and posts that load on a load board for $700 or $800. The broker just made $300 – a 30% profit - for doing little to nothing. The irony is that the “little guys” – the 97% of the industry – are the ones hauling the freight anyway. So why not have the shipper and carrier deal direct, meet in the middle at a fair price, and enjoy all the additional benefits the platform has to offer to both sides. And unlike traditional freight transactions where final settlement to the carrier can take months, in the LaneAxis model shippers must pay the freight fee up front. That money is then held in an escrow account. Following a delivery, a 24-hour dispute window kicks in, allowing either side to raise a flag or concern about the shipment. In such cases, a third-party arbitrator will be called in to settle the discrepancy. If no disputes are filed, payment is automatically released to the carrier via ACH. So in the end, the carrier got paid more and quickly, the shipper spent less and received greater transparency, and LaneAxis cut out the 20-30% margin out of the middle. LaneAxis’ primary revenue model consists of charging the shipper 1% of the agreed upon freight load, deducting 1% from the carrier, and charging the shipper a $5 load tracking fee. In short, LaneAxis only charges the parties 1% each instead of outrageous broker fees that routinely go north of 50%. On an average load, LaneAxis collects approximately $40 in revenue.

 

Currently there is a full-scale revolt against brokers on the part of many independent carriers. Recently several trucking associations, including one of our partners – The American Owner Operators Association – organized a targeted boycott of several brokers they felt were treating them unfairly. These boycotts indeed crippled the ability for these brokers to run business as usual.

 

The LaneAxis Network Portal and Driver App is designed to give power back to independents. First, LaneAxis essentially “owns the process” of a shipper-to-carrier direct network. U.S. Patent No. 9,928,475 - "Shipper and Carrier Interaction Optimization Platform,” officially approved in March, 2018, gives LaneAxis exclusive ownership over a SaaS platform that connects shippers and carriers directly. Our attorney estimate there may be dozens of companies currently in violation of our patent.

 

LaneAxis has also developed addition revenue streams:

 

·       The company has entered into an agreement with TCS Fuel – one of the largest discount fuel providers in the nation – to become our exclusive network fuel partner. Not only can carriers save $.60 cents or more on every gallon, LaneAxis’ use of artificial intelligence to identify the optimal time and location for a trucker to maximize every drop of fuel can potentially save carriers an additional 30% or more. Our goal is to give carriers fuel discounts of $1 or more per gallon, allowing them to compete with “mega carriers” who enjoy similar discounts. LaneAxis earns a percentage of every gallon sold.

LaneAxis’ organic growth has been nothing short of phenomenal. We are now seeking an additional $5 million to $10 million to accelerate the growth of the network via paid advertisements, billboards, television, trade and road shows, etc. Slow and steady is fine. But LaneAxis is focused rapid and exponential growth.

Please contact us if you would like to learn more about this opportunity. We also encourage you to visit our Reg. A campaign page at https://invest.laneaxis.com/ for a deeper dive into our platform, as well as to access our SEC offering circular.