The logistics branch in Germany and Europe is currently showing an increase of new business models and platform concepts. Startup company Cargonexx is one the most successful digital suppliers from Hamburg. In Germany, more than 1,700 freight companies are registered with the digital dispatch platform. With that, the company is also setting the tone within the lorry transport market.
New transport concepts in logistics are increasing pressure on existing companies. But the number of digital platforms on the B2B market will lead to consolidation of competitors in the long term. That does not put off Cargonexx CEO Rolf-Dieter Lafrenz: “The reason for the fast growth of Cargonexx can be found in the fact that we do not want to make dispatch companies redundant, but we want to help these companies become even more successful. That’s why we belong to the group of market players that will also be active in the long term.”
With the help of a self-learning algorithm, the market price for transports is calculated within milliseconds, based on data such as cargo, weather and traffic situation. For that, the startup company uses an innovative technology, which is, so far, unique in this branch. The use of Cargonexx is free, and there are no contractual obligations. The customer can decide for each transport whether Cargonexx is an attractive option. Cargonexx makes a margin of profit between purchasing and selling a transport, which focuses on demand and supply of the route.
Demand for Cargonexx’s platform concept is increasing. “In the past ten days, we managed to double our assignment volume. We have new record figures each week. That provides us with an enormous following wind for further development of our service,” Lafrenz says.
The next objectives of Cargonexx are the expansion of supply to other countries. Austria, Poland and the Netherlands will follow this year. In the long term, the platform should be available for freight transport throughout Europe.
Cargonexx was founded in 2016, and entered the market in December of that year, after a trial phase. The startup company is one of the first companies in Europe to use artificial intelligence to decide spot market prices for lorry transportation.