Beta.MN/ Byte is a series underwritten by Bust Out Solutions and published in collaboration with Beta.MN for the early-stage founders between idea and execution.
What is the name of the company and/or product?
Basin Commerce operates and on-line marketplace for buying logistics services for bulk freight.
What problem does this solve for who and how does this create value for them?
Finding and buying bulk freight logistics and transportation services still operates as it has for 50 years. Buyers make dozens of phone calls and emails. This saves time, increases the number of options and assures lowest prices.
How did you come up with the idea / what was your motivation for starting?
Two former Digital River executives were looking for an industry that hasn’t leveraged the web for commerce. They met two bulk commodities brokers looking for an easier way to organize logistics and transportation services.
What is the full launch/release date planned?
April 1, 2017
Who is on the team?
What is the specific technology or combination of technologies is used?
React, Node.js and Postgres SQL
Who is the customer and what is your revenue model?
We operate a two sided marketplace. On the Buyer side we have “shippers” of bulk freight products such as agricultural commodities or industrial minerals that need to transport those products. On the seller side, we have “providers” of logistics and transportation services like barge operators, trucking firms, railroads and transload operators. We take a 2.9% transaction fee on services sold.
What is the scope of your market and how will you scale?
The bulk freight logistics industry is about $45 billion annually in the USA. Our market opportunity is 2.9% of that market. We intend to scale by promoting the marketplace to shippers via digital and traditional sales and marketing strategies.
What is your greatest strength?
First move advantage, no one has done this despite the value expressed by both sides of the market.
What is your biggest weakness?
Lack of brand awareness and connections within the bulk freight market.
What is one resource you could use that would take this to the next level?
Capital to fund market expansion activities.
Is there anything else you would like to add?
This spring we will be expanding our team and hiring sales and development team members.