Periodic Reporting for period 1 - FUTrailer (Full-equipped electric trailer to boost the implementation of efficient, eco-friendly and resilient last-mile delivery)
Reporting period: 2019-04-01 to 2019-06-30
The last mile delivery sector is one of the most significant contributor to the negative impact of transport in urban environments. Due to the explosion of the e-commerce together with the increasing number of cities banning motor vehicles in their centres, the last mile delivery is in urgent need of re-defining its current mobility model in urban areas to increase the efficiency and cope with restrained traffic conditions. All companies operating in the last-mile sector have already started to test different solutions for switching to cycle logistics; however, multiple deficiencies have been detected. The main challenge relies in increasing the cargo load that the bicycle can transport without compromising its manoeuvrability and safety of both the cargo and the rider. At Nüwiel we have seized this opportunity and developed an electric cargo trailer, FUTrailer, that can carry big cargo loads (up to 300 Kg and 2m3) ensuring stability and safety for the user and the cargo. Our IP and the core technology is the patented intelligent riding system that ensures a perfect synchronisation between the trailer and the bicycle thus overcoming current stability and safety issues. FUTrailer offers the versatility needed to move around the city, as it incorporates an automatic switch between cycling and walking mode: the trailer can be used as an e-handcart in pedestrian areas and even inside buildings.
The operational tests run with different type of companies operating in the last-mile showed very promising results but have confirmed the need to redesign our e-trailer to increase its cargo load, stability and robustness and deliver a versatile solution that can be incorporated by all sectors operating in the last-mile. The execution of this Feasibility Study has enabled us to assess the best business opportunities among the trillion logistics industry as well as other booming sectors such as micromobility. We have planned a technical roadmap in which the demands from these sectors have been incorporated. Furthermore, we have designed an ambitious commercial and dissemination strategy that will boost the market uptake of the resulting e-trailer.
The operational tests run with different type of companies operating in the last-mile showed very promising results but have confirmed the need to redesign our e-trailer to increase its cargo load, stability and robustness and deliver a versatile solution that can be incorporated by all sectors operating in the last-mile. The execution of this Feasibility Study has enabled us to assess the best business opportunities among the trillion logistics industry as well as other booming sectors such as micromobility. We have planned a technical roadmap in which the demands from these sectors have been incorporated. Furthermore, we have designed an ambitious commercial and dissemination strategy that will boost the market uptake of the resulting e-trailer.
The main actions carried out and conclusions are:
TASK 1. Technical Viability, IPR & FTO Analysis.
Task 1.1. Analysis of customer pilots. We analysed in detail the results of the operational tests carried out last months to detect issues and gather end-users’ demands. In this way we have planned the technical roadmap in line with their real needs what ensures a high acceptance once the solution is in the market.
Task 1.2. Definition of the working plan. We have organised the end-of-development of our solution in 6 WPs, to be carried out in a period of 24 months. We have assessed the risks associated to all the tasks within the 6 WPs and already defined contingency actions to minimise their impact:
1. We will follow an incremental prototyping development model in which a MVP will be tested internally before the final prototype for operational tests is produced.
2. We have planned in detail the pilot tests to be carried out with prospective customers.
3. We have also identified the main technical risks that might arise during the execution of the working plan and elaborated a mitigation plan for each of them.
Task 1.3. Revision of our IP. We have identified three of the planned implementations that can be patented. FTO analysis discarded any conflicts and verified the relevance of early IP actions to block competence from bigger companies.
TASK 2. MARKET FEASIBILITY
Task 2.1. Market Analysis. We have carried out a detailed global market analysis to assess current and further business opportunities. We have examined in detail the structure of the overall city logistics sector to identify the best business opportunities. This has allowed us to organise an adapted market introduction of our solution, focusing not only in package delivery companies and retailers but also in the micromobility segment. We have also researched the cycle logistics market and analysed our competitors.
Task 2.2. Customers’ Assessment. We analysed the main package delivery companies and postal service providers in Europe to define our dissemination strategy accordingly.
TASK 3 COMMERCIALISATION PLAN
Task 3.1. Stakeholders’ engagement and establishment of strategic partnerships. We updated our customers’ portfolio and identified other groups of stakeholders that might have a relevant role in promoting or supporting our strategy.
Task 3.2. Settle a commercialisation strategy. We have define an ambitious commercialisation plan divided in two periods: 2020-2021 (pre-commercial tasks) and 2022-2026 (marketing and sales).
TASK 4. VALUE CHAIN: PRODUCTION AND OUTSORCING
Task 4.1. Reach new agreements with suppliers. We have identified issues with our current suppliers and checked for alternatives. We have also started to renegotiate current supply agreements to benefit from scale effects.
Task 4.2. Externalise Final Assembly. We have listed most critical elements that must be redesign to fulfil serial production requirements. We are also in contact with our assembly services provider to stepwise outsource the assembly of our solution.
TASK 5. BUSINESS PLAN ELABORATION
Task 5.1. Redefine pricing policy. We have defined new revenue streams including maintenance services and exploitation of the data gathered with the new version of our trailer.
Task 5.2. Validate our financial projections. In line with the updated commercialisation plan and production up-scaling, we have forecasted the sales projections under three different scenarios showing a great business opportunity for our product.
Task 5.3. A detailed budget for the roadmap-to-market has been elaborated including personnel costs and direct costs associated to the acquisition of new equipment among others
TASK 1. Technical Viability, IPR & FTO Analysis.
Task 1.1. Analysis of customer pilots. We analysed in detail the results of the operational tests carried out last months to detect issues and gather end-users’ demands. In this way we have planned the technical roadmap in line with their real needs what ensures a high acceptance once the solution is in the market.
Task 1.2. Definition of the working plan. We have organised the end-of-development of our solution in 6 WPs, to be carried out in a period of 24 months. We have assessed the risks associated to all the tasks within the 6 WPs and already defined contingency actions to minimise their impact:
1. We will follow an incremental prototyping development model in which a MVP will be tested internally before the final prototype for operational tests is produced.
2. We have planned in detail the pilot tests to be carried out with prospective customers.
3. We have also identified the main technical risks that might arise during the execution of the working plan and elaborated a mitigation plan for each of them.
Task 1.3. Revision of our IP. We have identified three of the planned implementations that can be patented. FTO analysis discarded any conflicts and verified the relevance of early IP actions to block competence from bigger companies.
TASK 2. MARKET FEASIBILITY
Task 2.1. Market Analysis. We have carried out a detailed global market analysis to assess current and further business opportunities. We have examined in detail the structure of the overall city logistics sector to identify the best business opportunities. This has allowed us to organise an adapted market introduction of our solution, focusing not only in package delivery companies and retailers but also in the micromobility segment. We have also researched the cycle logistics market and analysed our competitors.
Task 2.2. Customers’ Assessment. We analysed the main package delivery companies and postal service providers in Europe to define our dissemination strategy accordingly.
TASK 3 COMMERCIALISATION PLAN
Task 3.1. Stakeholders’ engagement and establishment of strategic partnerships. We updated our customers’ portfolio and identified other groups of stakeholders that might have a relevant role in promoting or supporting our strategy.
Task 3.2. Settle a commercialisation strategy. We have define an ambitious commercialisation plan divided in two periods: 2020-2021 (pre-commercial tasks) and 2022-2026 (marketing and sales).
TASK 4. VALUE CHAIN: PRODUCTION AND OUTSORCING
Task 4.1. Reach new agreements with suppliers. We have identified issues with our current suppliers and checked for alternatives. We have also started to renegotiate current supply agreements to benefit from scale effects.
Task 4.2. Externalise Final Assembly. We have listed most critical elements that must be redesign to fulfil serial production requirements. We are also in contact with our assembly services provider to stepwise outsource the assembly of our solution.
TASK 5. BUSINESS PLAN ELABORATION
Task 5.1. Redefine pricing policy. We have defined new revenue streams including maintenance services and exploitation of the data gathered with the new version of our trailer.
Task 5.2. Validate our financial projections. In line with the updated commercialisation plan and production up-scaling, we have forecasted the sales projections under three different scenarios showing a great business opportunity for our product.
Task 5.3. A detailed budget for the roadmap-to-market has been elaborated including personnel costs and direct costs associated to the acquisition of new equipment among others
FUTrailer will be the first e-trailer with own patented technology that can carry heavy weights and large volumes ensuring stability and safety for the user, the cargo and all other users of the road. The first version of our product has been tested in operational environment with different types of companies operating in the last-mile. Those tests have resulted in the first sales. Since 2018 we have sold 51 units of our current prototype to market leaders in the package delivery sector such as UPS, retailers as IKEA, an others companies such as Airbus. These sales have reported us revenues for ca. €300,000. We have also achieved another crucial milestone: the consolidation of a competitive network of suppliers that ensures a smooth up-scaling of our production capacity in line with the expected increase of demand. FUTrailer will enable companies operating in the last-mile, from package delivery companies and retailers as well as micromobility service providers to implement their sustainability agendas and achieve and efficient emissions-free movement of goods in urban areas.
With 54,000 FUTrailer units in the market in 2026, we expect to substitute 1,213 million Km of motor vehicles saving up to 378 million tonnes of CO2. This will allow a reduction of up to 30% of urban traffic congestion and 40% air pollution and a decrease in traffic noise by 10 in each EU city where FUTrailer is in operation. FUTrailer will also boost the growth of Nüwiel with revenues surpassing the €150 million by 2026 and the creation of up to 70 new job positions
With 54,000 FUTrailer units in the market in 2026, we expect to substitute 1,213 million Km of motor vehicles saving up to 378 million tonnes of CO2. This will allow a reduction of up to 30% of urban traffic congestion and 40% air pollution and a decrease in traffic noise by 10 in each EU city where FUTrailer is in operation. FUTrailer will also boost the growth of Nüwiel with revenues surpassing the €150 million by 2026 and the creation of up to 70 new job positions