Hello, Let us introduce ourselves. We are farol, a Last-Mile Delivery company that connects E-commerce retailers and Shippers of all kinds and sizes to their customers. Valuable network + Extensive hands-on experience Joaquim Curvo - CEO 12 years in warehouse management, including 4 years of e-commerce fulfillment in US Northeast. Staples - Phillips Carnegie Mellon University - Operations MBA Guilherme Prado - COO Industrial designer managing 30+ designers and engineers for a renewable energy company. What we bring Retailers have very limited options to deliver their orders: When you look at the transportation and warehousing industry, most of the innovation is on the fleet management and fulfillment areas and none is deeply focused on the last mile service efficiency. Current softwares provide a one-size fits all solution by having generic routes creations that does not takes into account a city’s dynamic or the cargo type being delivered. The labor and efficiency problem Spend tons of money and time to build their own fleet operation Outsource to a 3rd party operator that charges for labor (Ex: Capstone Logistics) Pay UPS/Fedex prices of 1-2 business day delivery US e-commerce is not prepared to offer next day delivery. Parcel deliveries became scattered and costly leaving retailers with no options and waiving ownership of its customer experience. Overview Last mile accounts for 41% of total transportation cost 95% of share of third party parcels is held by FedEX and UPS UPS CEO 2021: “So for some shippers, we’re no longer delivering their packages and that’s OK with us” 41% 95% 2021 is seeing double digit increase in parcel services costs. ShipMatrix now forecasts that package volume will outstrip delivery capacity by 1 million packages a day Midsize retailers will have the only option to enter into the supply chain of their competitors Amazon/Walmart. 88% of customers reported that are willing to pay for next-day delivery. Supply the labor and technology focused on the last mile so that next day delivery is achievable from the smallest to the largest retailer. The opportunity Premiumization of delivery will drive the growth of the Last mile delivery industry in the US. Only large corporations have the capacity to create their own delivery operation. We allow retailers of all sizes to never miss a delivery with top-notch intelligence and reliable service. We’ll start by filling the major shortage of drivers in large retailers, taking advantage of the current unreliability of our competitors. A one-stop for: The difference we want to offer Software + Service We build company and city specific last-mile intelligence bringing significant operational efficiency over current softwares that are generic built. Farol takes into consideration critical factors to customize a unique solution for each customer. Software Companies’ specifics cargo characteristics Requirements such as signature or drop off only Customer types (businesses, residential, hospitals or schools) Instructions to leverage city’s traffic flow and rules of operations These factors include but are not limited to: We deliver customized solutions to enable shippers of all sizes to deliver more, faster. We will enable driver retention by transforming the side hustle into a reliable cash source. Use our vans: Don’t tear your personal car like Amazon Flex, Lasership and other driving services (Uber,Lyft). Our service competitive advantage Recruit drivers by giving them truly independence: Make your own choices: Big route = big pay, quick route = work less Set schedule: no down time as driving apps. ➔ From inflexible companies ➔ Ride sharing apps ➔ Food delivery apps ➔ Independent workers ➔ No costs ➔ Perks ➔ Stability on hours ➔ Reliable income source Farol works hard to bring intelligence and the most cost efficient operation in the industry to our last mile solutions so that our customers focus on their core. Out of the door, we own getting the product to your customer. Research-based reasons for drivers to join Farol Reliable service Benefits they don’t get elsewhere while being truly independent. Target driver recruiting Worry-free Complete Intelligence Solutions packages offered 1 2 3 Software only Software + Last Mile Software + Last Mile + Routing and Sorting Large volume focus: Give large retailers and distributors a reliable service that they are willing to pay for. In the long run, we will build a strong operational model creating value for all stakeholders. Our roadmap Software development and implementation Enable stable pricing: capture clients with no capacity to build their own transportation team. Start sorting services and offer to small retailers with no warehouse operations. Concentrate volume in one warehouse giving us the ability to price for all client sizes. 1 2 3 4 5 Other competitors are mostly informal or unreliable. We did not find a competitor that provides software and labor service for last mile as we want to provide. However, our main competitors bare the same challenges that large retailers with delivery operations have and do not have any leverage to attract drivers. Competitive landscape Financials Service financials per vehicle Estimated Costs/Van Fixed Van $700 Insurance $330 Admin, Permits, Tools, etc. $650 Maintenance $300 Variable Gas $640 Driver + Helper - Hours $6,800 Total $8,140 Estimated Revenue/Van $450 $500 $550 $600 Daily Rates $9,000 $10,000 $11,000 $12,000 $13,000 $860 $1,860 $2,860 $3,860 Gross Margin Monthly $650 $4,860 Customization Software costs Implementation Monthly fee + incremental charges per routes quantity. There is no way back for last mile. We are going to build it. Thank you. Joaquim Curvo +1 412 587 1940 j.curvo@farol.app Complete remote experience for drivers and managers, so that we can focus on growth!