AQORDS turns freight "proof of delivery" documents into smart contracts to provide trust, transparency, visibility and lower the transaction costs by fully digitalizing the delivery process to enable fast payments.
Problem:
The traditional invoice payment process for freight transportation is lengthy and reliant on paper documents.
- The average contractual invoice payment term is 30-45 days.
- To start the 30-45 day payment period, a transport company must first send the freight “proof of delivery” documents, in original form, by post. This process can take 7-30 days.
- As a result, invoices are typically paid 42 days after the original documents are delivered, leading to an actual payment term of 37-65 days.
- Shippers and carriers are over-reliant on “trust” from past experience when doing transactions together thus limiting their choices of business partners
Consequece:
- Over 70% of invoices are paid after the due date.
- 45% of overdue invoices are subject to late payment collections, incurring additional administrative costs for both parties. 20% are subject to litigation.
- 5-15% of overdue invoices will never be fully paid.
Solution
AQORDS concept
Why blockchain?
- Immutable record keeping prevents fraud
- Smart contract digitization eliminates delays in procedures and payments
- Connects shippers and carriers in strong communities, building trust
- Lowers financing costs for carriers through decentralized finance (DeFi)
- Provides increased transparency and security throughout the entire logistics process
- Enables faster and more efficient payments
- Streamlines dispute resolution through smart contract automation
- Allows for real-time tracking and monitoring of shipments
- Enables access to a wider range of business partners and opportunities.
How Aqords works:
- Integrates with other apps and major shippers and freight forwarders
- Uses open orders from freight exchange platforms to generate and convert user transactions into smart contracts
- Smart contracts are signed through freight exchange platforms
- The track-and-trace module monitors contract execution
- Once freight is delivered, both parties confirm or decline contract execution
- Guarantees payment for truckers if contract is executed and confirmed as delivered by all parties
- Uses KYC data from integrated freight exchanges to filter bad players, and publicly blacklists companies and their founders for late/non-payment.
User benefits
The shipper
- Decreases administration costs by integration of our smart contracts into their ecosystem
- Decreases transportation costs by accessing more carriers (TRUST enabled)
The carrier
- Get paid upon delivery
- Avoid delayed payment & increase profits
- Decrease of delayed payments (increasing the profit)
- Access to a broader range of shippers by "TRUSTLESS" delivery execution
- “Premium feature” - instant payment on delivery, or advance payments
Freight exchanges
- Increased profits via commissions from smart contract integration
- Increased profits via commissions from smart contract integration
Market validation & size:
- In 2021, there were approximately 400 million CMR executed in the EU
- Average invoice value is €1,500
- Total market size is €600 billion
- Target market size for Aqords is 5% of the total market size, or €30 billion
Source: www.statista.com | www.businesswire.com
Business Model — Monetizing eCMRs
Main service — base price €5 - €10 per signed eCMR.
Escrow service — 0.1 - 1% per contract.
Factoring service — 1 - 3% per contract per 30 days wait cycle.
Revenue projections
- Mandatory transition to eCMR by 2026 in 56 countries presents a significant opportunity
- Targeting 5% of the total addressable market (TAM) of companies ready to adopt the Aqords technology “here and now”
- Realistic calculation: Achieving 75k eCMRs signed daily on Aqords
- Integration with other freight exchanges helps to build transaction volume leading to rapid YoY growth in revenue.
Competitive landscape:
Marketing
Aqords team is uniquely positioned for success
- Aqords team has a proven track record of success in building successful startups
- Experience in building Qoobus, the best freight exchange on the market
- Founded a crypto platform for lending, borrowing, trading, and yield farming
- Strong team with diverse domain expertise in supply chains, freight transportation, blockchain, DeFi, and online marketplaces
- We are dedicated and hungry for success in making Aqords a successful unicorn company.
Business and Tech Team has strong track-record
Mihail
CEO & Founder at Qoobus.
Entrepreneur, Corporate Lawyer, Inventor, Designer.
Epic problem solving, scaling organisations, visualising and inventing
the future - This gets me up in the morning.
Having fun doing it everyday!
Evghenii
CTO and Co-founder at Qoobus.
Senior Lead Engineer.10+ year in traditional IT development and
Blockchain.
Tom
Defi OG. Founded a crypto platform for lending, borrowing, trading and yield farming. $2B TVL, successful transition to DAO. 20+ years as a technology leader.
Robert
CFO, transportation industry player €3B+ business volume. 30 years in business and management roles in several high growth technology businesses. Involved in national PSD implementation for transportation industry.
The ask
We are looking for 18 months financing to reach 50K transactions on AQORDS.
Stepping stones
Thank You
If you have any questions, please let us know.
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