I've spent some of my weekend reading about technology adoption...

I've spent some of my weekend reading about technology adoption in logistics and the oppotunity that artifical intelligence, blockchain etc can offer. On one hand logistics is ripe for emerging technology to be applied and the opportunities are enourmous as this industry gets overhauled in coming years. The issue though is whether a small listed company like YOJ can capture a significant share and maintain that over others.

We are at the front end of technology moving into logistics applications. Billions are being spent by big tech firms in related areas and large numbers of start ups have raised funds and launched in the past two years around such emerging technologies. Yoj seems to have gotten out in front of the market in the logistics space by being a first mover but its easy pickings at the moment. Can it stay a leader here?

Logistics is a low margin business but massive volume and scale. It will end up being attractive to large tech firms to try and dominate this space. Yoj wont get it all to their own for much longer.

They will almost certaintly need to hook a large established player long term to support their roll out if they are going to get to scale that supports their current market cap let alone further multiples and to stay relevant. Even then the risk is other better tech coming over the top by bigger and better backed firms.

Many new industries emerge by small entreprenuers moving first, which later get consolidated into a handful of large firms as the tech matures and the small firms can't compete.

I see YOj as picking a great strategy of applying solutions to logistics and Asia and moving early. I'm struggling to see how they can dominate. The quality of their tech is difficult to judge particularly against what might be coming, whilst their ability to execute is showing early promise but unknown yet. A network effect from linking companies on common platforms will be important for logistics so a big tech name with capacity for a loss-leading market-share build at some point will have an advantage achieving this.

Good luck to Yoj but they'll need it. The have to actually have (and maintain) world-leading tech (not just a slogan), secure some big partners (as their primary tech partner not just early or marginal projects for them) and move very fast to get scale to secure a defensible foothold in the sector. A big ask and the outcome is too hard to determine a this point. Good early signs but still an expensive market cap even with recent falls that prices in a lot of premium for future successes that they haven't secured yet.

This remains a very speculative punt on these guys that could equally flame out as be successful.