By becoming a part of PackBud you get the opportunity for a sizeable return on your capital and make a sustainable difference to the environment. We’re creating more efficiency and sustainability in the transport industry and we’re doing it now! Since starting, PackBud has grown by more than 30% each year and continued rapid growth is expected, we have an explicit strategy to expand throughout Europe by 2019 at the latest.
The problem this product solves
Most of us, and many companies, regularly need to move and transport things. However, so many things are hard to move, such as sofas, beds, machinery, motorbikes, boats etc.
The problem is:
- Who do you contact for help?
- How can you be sure you're hiring a reliable transporter?
- What is a reasonable price for the transport?
- Transporters are having problems with low grade of filling the trucks. Around 50% of available space runs empty. This means that roughly half of all transports are not needed.
- Many small/midsized transport companies in general, don't have the modern IT-tools they need to make their business more efficient.
How the product solves it
PackBud is the economical- and climate-smartsolution for transport and removal. As our client, we deliver the help you need from quality controlled and rated transport companies, and, to the right price.
PackBud transporters can plan and route optimize their transports and by doing so, they can generate more revenues plus fill their trucks better which is environmental friendly.
As the intermediary, PackBud guarantees the full process. PackBud gets paid by the client and pays the transport company once the transport is complete.
PackBud connects anyone who needs something moved/transported with certified transport companies of all sizes. The client describes the objects by size and weight. The client also specifies when to pick up and deliver the goods. With this information, transport companies send their bids to us. Normally the company with the lowest price will get the order, but the client always has the final say.
Product use cases
- Maybe you have inherited a nice antique cupboard that you want to move to your summer house. You are in no rush, but want it delivered in the same condition as when it was picked up.
- You are moving from one house to another, but you have no idea who to hire. You want a trustworthy and experienced company with a good reputation.
All transport companies who join PackBud have the required permits and insurance. The transport company picks up and delivers within the time limits, you get a safe transport at a competitive price. Easy and smooth!
Mikael Funa CEO, Co-founder and board member
Serial entrepreneur with a Marketing Economics diploma from IHM Business School. Has started and run digital solution companies since the year 2000. For 10 years, Mikael was CEO and Co-owner of the city guide www.uppsala.com and the event and entertainment site www.uppsalavimmel.se. Both these sites were acquired by media giant ... See more
Serial entrepreneur with a Marketing Economics diploma from IHM Business School. Has started and run digital solution companies since the year 2000. For 10 years, Mikael was CEO and Co-owner of the city guide www.uppsala.com and the event and entertainment site www.uppsalavimmel.se. Both these sites were acquired by media giant Upsala Nya Tidning and Norrköpings Tidningar 2011. See less
Thomas Fogdö Sustainability Manager, Co-founder & board member
Former alpine World Cup skier and ranked number one in slalom in 1993. Have been working as a coach in sport psychology since 1999 and as a frequent hired lecturer at schools, sport clubs and companies. Over the years, Thomas has been a governing body of several charity organizations. Thrilled ... See more
Former alpine World Cup skier and ranked number one in slalom in 1993. Have been working as a coach in sport psychology since 1999 and as a frequent hired lecturer at schools, sport clubs and companies. Over the years, Thomas has been a governing body of several charity organizations. Thrilled of making the most out of what you have and loves the creative side of the job along with the friends and co-founders of PackBud. See less
Pär Wredendahl Product development, Co-founder & board member
Pär has an extensive experience in project management, calculation, construction and documentation. Apart from this, his ability to find ideas "out of the box" has been as is very important to the team since we in many cases are creating something new that no one else ever tried.
Around 20% of all goods transported are package freight (boxes and packages), furniture, machinery, vehicles, boats and removals (homes and offices). The total number of removals registered in 2016 was 1.4 million. We assess the total market of removals to be worth SEK 7 billion (2016), based on the price per removal being SEK 5000 if every removal was being carried out by a transport company. We value the total market potential for these kinds of transports to be around SEK 32 billion per year in Sweden alone. A gigantic market!
There are similar services on the market, some of them Swedish. In other countries, some companies have succeeded by offering similar services, among them Uship (uship.com), Shiply (shiply.com) and Anyvan (anyvan.com). These companies are present in some countries and have plans to expand, but so far, none of them has yet established themselves in the Nordic countries. The largest competitor is alternative ways of solving transport needs, with customers making their own search on the internet, asking friends or doing the transport on their own.
Unique differentiator from competitors
PackBud offers an easier process for ordering a transport. The client saves both time and money and also chooses a transport company based on reviews and testimonials from other clients. PackBud also ensures that the transport companies hold all required permits and insurance.
PackBud receives payment in advance, which is a comfort for both the client and the transport company. PackBud will shortly launch an advanced route optimizer that will add large competitive advantages.
- The transport company can easily find new clients and pick up goods along the way.
- The client can find empty space.
Company revenue streams
We have two primary sources of income.
- A fixed charge paid by the client when ordering a transport
- A commission paid by the transport company on all completed transports
This year we will increase our revenue streams due to our new route optimizer and by closing agreements with a number of partners interested in reaching our clients.
At the moment most clients come from different strategic partnerships, among them the very popular Blocket, Sweden’s largest buy-and-sell site online by far. Through Blocket, we reach clients with a direct need of finding a transport solution. Other large clients are auctioneers and other digital channels. PackBud scores high on search engines on words that include transport and removal. Transport companies join after finding us and find the service very attractive. We are actively recruiting more transport companies by contacting them directly and through trade shows and other activities.
- 2013 PackBud version 1.0 is launched
- 2013 Winner of the Bona Postulata business award
- 2013 Admitted to the incubator Minc, Malmö
- 2013 Receives an innovation loan from ALMI
- 2016 Cooperation agreement with Units.se and Slag1.se
- 2017 Cooperation agreement with Blocket.se
- 2017 Cooperation agreement with Barnebys.se
- 2017 Cooperation agreement with Effecta
Next key objectives
- Q2 2018: Launching the route optimizer, the future backbone of PackBud
- Q2-Q3 2019: To establish PackBud on other markets
- 2019: To become profitable
- Reach an annual growth of minimum 50% in the coming 3 years
- Reach a 20% margin from completed transports
- Contribute to a reduction of carbon dioxide emissions from the transport industry
- To receive EU funding during 2019 to expand to other markets and develop the service
- To be the most used service for route optimizing in Europe among independent small and mid-sized transport companies during 2023.
- The founders of PackBud have, together with 10 external owners, invested over SEK 7 million since the company was founded. The external owners include business angels and the investment company Aggregate Stockholm. Capital has mainly been used to build the technology platform and marketing.
- Besides capital from the owners, the company recently received SEK 2 million in direct economic support from the Swedish Energy Board. The capital will start to be spent in the spring of 2018.
- The company has also received a SEK 1 million loan from ALMI – a governmental investor in young growth companies.
Use of funds
50% – Development of a route optimizing system. We will also further develop the base platform and mobile apps.
25% – Marketing. Greater visibility towards the transport industry and clients in need of transport and removal services.
15% – Sales. Speeding sales activities to both transport companies and future clients.
10% – New markets. Preparations to launch PackBud in additional countries,
Our estimation is that growth will increase properly the coming years. The Route optimizer will create a whole new usability. We are adding another layer of intelligence making us ready for future opportunities.
The service is expanding to more markets which is really exiting!
Further expectations is that the company during year 2021 will be valued at least 10 times the current valuation. Prior to expansion to other markets, we expect to raise even more capital. Potential investors are primarily venture capital companies, and in that scenario, a buyout will be possible at a higher level than the current valuation.
We have identified a few risk areas:
Our ability to attract a larger number of clients
We are counting on larger volumes based on current and future partnerships.
Our ability to create the best product
The technical platform is under continuous development and is dependent on large resources; there is always a risk that competitors with larger resources will appear.
Our ability to recruit more transport companies
If we cannot create a balance between client needs and transport companies’ abilities, it will affect our development.
Other risks are direct or indirect competitors, changes in client behavior, new regulations on the transport market and other market changes.