Thought I'd post part of an extract from a broker's report published in April this year. It gives a good account of what Yojee is all about and an insight into the various ways they will generate revenue and also the future potential for rapid global growth.
Since this article was published, there have been numerous positive announcements by the company with regard to various new deals and letters of intent etc.
For example:
Puma Australia
Spotlight
Tasman Logistics
Schaarf in Peru and Bolivia
Here it is:
..."Yojee is based in Singapore, with an office in Perth. They listed on the ASX via a reverse takeover of Southern Crown Resources in June 2016. They’ve developed blockchain technology to create their own logistics platform, one that’s set to transform the way companies move goods around the world.
In a company blog post from October 2016, the company explains,
‘The technology we use is the much hyped, but little understood ‘blockchain’. What we love about it is its ability to create the things that are largely missing in supply chain - transparency and trust.
‘The Yojee blockchain platform turns a very secretive, siloed and low-trust supply chain environment into a high-trust and fully visible and unambiguous one.
‘…we are convinced that it has the potential to transform business, government and society because it can cut both cost and time from transactions, whilst ensuring integrity and trust between strangers and support a whole host of breakthrough applications. It removes the need for financial intermediaries and this is quite significant.’
There’s simply only one direction for the delivery of goods and services around the world — closer to an instant system.
That means next day or, even better, same day delivery. If we order something online we want to get it as soon as possible. Not in five days, not even in three or two. We want it tomorrow at the latest.
Right now you can get that kind of delivery speed with Amazon, but only them. And only if you have Amazon Prime. And while we certainly think Amazon will come to dominate logistics, it won’t be a monopoly.
There has to be a solution for smaller businesses. A way that any small, medium or even large business can move goods around the world fast, cheap and without fuss.
In our view, Yojee provides that system.
In December 2016 Yojee announced that they had commenced freight movement operations nationwide in Singapore. This means they are able to offer three hour and same day delivery to ecommerce providers.
By using Yojee companies are able to use not just their blockchain system, but also deep learning (an early form of artificial intelligence) and automation to move freight around Singapore.
Yojee receives orders using computer intelligence to allocate the delivery to the most efficient route and mode of delivery to get the order there fastest. They call it ‘intelligent dynamic routing, clustering and job assignment.’
The way the company makes money is simple — and varied.
One way is from ad hoc deliveries. So if you wanted to send something you’ve just sold via a peer-to-peer site (like Gumtree) and you want it to arrive in three hours, you’d pay the delivery fee and set up the delivery in Yojee’s app.
Another is if you run an ecommerce business (for example), you’d pay a monthly reoccurring fee depending on your size, as well as the number and size of goods you need to move.
There’s also the potential for Yojee to licence out their software. That would be an initial fee and there would be ongoing support, maintenance and upgrades. Or they can sell white label versions as Software-as-a-Service (SaaS) to existing logistics companies. Or they could simply provide tracking services, or their dynamic routing services.
Exactly how much businesses will pay we won’t really know until real revenues start to flow in from deals. But in our view it’s a compelling offering for logistics companies. And one we think they’re prepared to shell out serious money for.
Yojee has managed to develop an end-to-end logistics system for our digital world. Using deep learning (computer intelligence) and digital systems like chatbots and the blockchain, Yojee has built a logistics company that is prepared not just for the world we live in today, but the even more connected and ‘instant’ world we’ll have tomorrow.
What’s even more encouraging is that Yojee is now starting to roll this out into the world. They’re still early stage, but look to be on a rapid growth trajectory.
They’ve already released several key announcements for partners coming on board to use their services.
Raja Pindah — an Indonesian logistics and courier company — wanted to move into the express delivery market. Instead of trying to build their own systems and service, they simply signed on to a white label agreement with Yojee to use their Software as a Service model. This announcement came in December 2016.
Post Media is the largest media and news organisation in Cambodia. Not only do they operate two of the most visited websites in Cambodia (
phnompenhpost.com and
postkhmer.com) they also print and deliver a daily newspaper nationally.
Post Media signed a Memorandum of Understanding with Yojee in January. Yojee will build a delivery network across Cambodia with Post Media bringing its customer base, delivery and logistics expertise.
While Yojee can help Post Media reduce their cost of logistics and improve delivery, they can also leverage other companies through marketing and awareness of the platform to bring in new customers all across Cambodia.
On 4 April Yojee then announced a three year deal with Indonesian company, Lion Parcel. In this deal Yojee will licence their platform to Lion serving the domestic and international area of Indonesia and South-East Asia.
Lion has the largest fleet of airline and delivery vehicles in Southeast Asia, with over 240 aircraft. While Lion was only founded in 2013, they are one of the fastest growing logistics companies in Southeast Asia, and by taking on Yojee’s technology are showing they’re preparing for rapid future growth.
As you can see, the current focus of Yojee is Southeast Asia and Australia. That’s the priority, and that’s where they should achieve rapid growth. But there’s no reason why Yojee’s platform can’t be used anywhere…or everywhere…in the world.
It’s the kind of platform that can scale exponentially to any region and to any company."
So there you go. Overall it's quite a good synopsis of Yojee I feel.
Regarding the sp,I expect we'll see a period of consolidation around the current level before the next move up which should occur once we get confirmation of signed contracts with Schaarf. We may possibly also see the conversion of some of the MOUs the company has in the pipeline. The company has also recently hinted that they are in deep discussions with a couple of major logistics companies and we may hear more about that in the coming months.
The revenue should then start to grow very rapidly as a consequence and hopefully we'll then see the share price mirror the performance of GSW - up more than tenfold this year!
Plenty of blue sky ahead for Yojee in my opinion.
GLTAH
Jasp
(20min delay)