In today’s eco-conscious climate, fleet logistics and transport companies are no longer just cogs in the machine – they’re crucial to slashing carbon footprints and building sustainable supply chains for everything.
That’s where Orcoda (ASX:ODA), Australia’s 40-year logistics veteran, enters the scene, revving up with its smart solutions that are transforming cities and driving revenue into 2024.
The company boasts a range of apps and services, including its Orcoda Logistics Management System (OLMS), Orcoda Go App, Orcoda Notify App, Orcoda Community Transport (OCT) software and its Orcoda Workforce Logistics System (OWLS).
So far, Orcoda has tracked up to 7000 vehicles, with three million fleet movements optimised per year from companies including Savills Australia, SGS Logistics, Teletrac Navman, Comlink Australia, Toll, Volvo, Pacific National, Ergon Energy and more.
These companies trust Orcoda for a reason: cost savings, operational efficiency, and monitoring of everything from vehicle location to driver behaviour.
But it doesn’t stop there. Orcoda, driven by the urgent need for smarter city solutions, is constantly innovating. The latest innovation is Orcoda Connect, avehicle pooling app that books, locates, opens, starts and locks the vehicle from one app.
By collecting data from multiple manufacturers and accessing it from within one central platform, you can connect all your vehicles. ORCODA has also included an anti-theft innovation with an immobilisation function to protect your fleet.
Orcoda Connect
Orcoda is busy revolutionising the way we move, the way we save the planet and the way we do business. With its existing relationship with leading telematics company Teletrac Navman, ODA is offering its Software as a Service (SaaS) to businesses throughout Australia and New Zealand.
The app incorporates Teletrac Navman’s TN360, an AI-enabled fleet management platform that uses real-time data to increase sustainability on the road as well as company costs.
Additional advantages of the app include reduced workforce costs, elimination of call centres, increased fleet utilisation, management of tolls, accurate location of vehicles and visualising fleet redundancy.
The app is available through Google Play of the Apple store and has been designed for large companies to share vehicles between staff.
“Our optimisation algorithms provide AI to do computations within minutes that would take a Human Being many days to complete therefore delivering multiple efficiencies and cost savings to our clients.”
Customers can choose from a $14 basic subscription, which includes booking and administration features, or they can choose from a standard, standard total, or upgrade to a premium $60 subscription.
The premium package encompasses advanced fleet management, API Integration telematics, AI cameras, company branding, custom reporting and extra customised features.
What’s more, the cars come rigged with Anti-theft innovation and an immobilisation function to protect customer fleets. The easy-to-book system needs no training and increases the sustainability of a workforce all through one central platform.
Staying with the times is important too, and that’s why Orcoda has made sure its SaaS works for a range of different fleets, from key ignition to push-button start.
Koala Cars trial run
Orcoda has teamed up with Australian company, Koala Cars in a trial to test its new Orcoda Rental Connect software on rental car applications and subscriptions.
The opportunity to test the new abilities of the app on a fleet of more than 1000 vehicles is exciting for Orcoda and propels the company into the ever-growing car subscription market.
“This trial could be the start of something significant for both our organisations and we are excited about the potential for growth and innovation that it brings,” Mr Jamieson said.
“The car rental, long-term rental and car sharing markets in Australia, and internationally, are vast and dynamic.”
Global Market Insights projects that the car subscription market will experience a compound annual growth rate (CAGR) of 35 per cent between 2023 and 2032, surpassing US$5 billion (A$7.83 billion) recorded in 2022.
Through this contract and its many other collaborations, Orcoda is proving it can improve fleet economics while reducing risk and enforcing faster and better customer service for anyone opting to use its fleet solutions.
2023 in a nutshell
Orcoda managed to gain the attention of some world-leading logistics and transport companies this year, increasing the ability of its logistics portfolio and enhancing its ability to reach providers in a variety of industries.
Future Fleet International Acquisition
One such enhancement to Orcoda’s portfolio has been this year’s acquisition of international transport company, Future Fleet International.
The acquisition has allowed both organisations to onboard new customers at larger levels, granting Orcoda access to a fleet of more than 6300 vehicles.
“The transaction is important to our overall Smart Cities strategy as Future Fleet’s products provide critical vehicle tracking and monitoring solutions and are highly complementary to our transport management and optimisation,” Mr Jamieson said.
Since the acquisition Future Fleet has ushered in a revenue of $900,000 for Orcoda, which included $600,000 in recurring subscription fees for the quarter.
“Future Fleet is performing very well, and the team is busy working with existing and prospective customers doing the 3G to 4G/5G upgrades to their vehicle fleets prior to the proposed 3G network shutdown on 30 June 2024,” Mr Jaimieson continued.
Mini Tankers Australia contract
This year Orcoda’s subsidiary, Orcoda Healthcare and Transport Logistics, won a new software-as-a-service (SaaS) contract with Mini Tankers Australia, which is part of a nationwide organisation known as Refuelling Solutions Australia.
The three-year commitment will see Refuelling Solutions provide direct-to-site fuel delivery services and fuel management processes throughout Australia using Orcoda’s fleet logistics software.
“We are pleased that Refuelling Solutions has selected Orcoda’s software platform to support the management of its tanker fleet fuelling delivery operations,” Mr Jamieson relayed.
Orcoda anticipates it will generate revenue in the range of $700,000 to $850,000 during the initial contract period.
AFR’s Fast 100 list of companies of 2023
In its most recent milestone, Orcoda has been recognised as one of the fastest-growing companies in 2023, ranking number 54 on the Australian Financial Reviews Fast 100 List.
The list comprises companies that began trading before July 1, 2018 and those that recorded a minimum of $5 million in revenue for the 2022-23 fiscal year.
“Orcoda’s inclusion in the AFR Fast 100 is a testament to our outstanding performance, driven by organic growth in recurring revenues with major contract wins, strategic partnerships with channel partners such as Teletrac Navman, and the successful acquisitions and integrations of The Betta Group in 2020 and Future Fleet in 2023,” Mr Jamieson said.
In FY23, Orcoda also achieved a total income of $20 million, and reported $2 million in underlying EBITDA, achieving its target of profitable growth.
“We have started FY24 with a bang, achieving record quarterly customer receipts, positive operating cash flow and total income, all up considerably compared to previous quarters,” Mr Jamison said.
“Our cash and cash equivalents have increased from $4.8 million at last quarter end to $5.5 million as of 30 September 2023, this is a fantastic result considering the cash outlay for the Future Fleet acquisition and paydown of some debt during the quarter.”
What’s in store for 2024
As Australian cities shift towards fourth-generation (4G) and fifth-generation (5G), Orcoda’s fleet logistics software is positioned for a continual upward trajectory, promising enhanced sustainability and a leap forward in intelligent urban living.
“With the acceleration of digital transformation, I believe Orcoda, with our proprietary technology platforms and a healthy balance sheet, is well positioned to grow our market shares across the company’s addressable markets,” ODA Chairman Nicholas Johansen said.
“We are also on track with our long-term smart-city strategy to be a leading integrated Intelligent Transport Management System (ITMS) provider, a space in which we believe will evolve rapidly as artificial intelligence, connected cars and digital transformation gather pace.”
In an exclusive conversation with The Market Herald, Managing Director Geoff Jamieson said Orcoda had been invited to attend multiple major tenders, proving that the company’s reputation has become renowned in the field of transport logistics.
“…We are winning most of them against our competitors which is proving our software and capability is best in class,” he said.
As we head into 2024, Orcoda has placed a strong focus on building up its new Orcoda Connect app to continue building its substantial logistics pipeline. The company revealed it has multiple tenders it’s currently bidding on that it expects to win.
With real-time tracking, improved communication, proactive maintenance, and data-driven decision-making, Orcoda’s software stands as a game-changing development that promises businesses significant savings in terms of time, money, and resources.