Logistics Launchpads: Tech accelerators foster air cargo innovation

Rocketing forward

The appeal of the accelerators is obvious for logistics startups looking for a foothold in the crowded 3PL market. But what is the appeal of RocketSpace for a large carrier like Lufthansa Cargo (LHC)? “We are not only fully supporting innovation and digitization in our own company,” said Monika Wiederhold, vice president of product management and Innovation at Lufthansa Cargo, “we want to drive our industry forward as a whole. The logistics industry is really ripe for disruption. The question is, how long will it take?”

LHC approached RocketSpace back in March, she said, and became part of RocketSpace’s first Logisitics Tech Accelerator in April. After a call went out for logistics startups to submit proposals, RocketSpace gathered about 60 applicants. “The candidates ranged from just being at the idea stage to being pretty well established,” Wiederhold said. “We were very satisfied with the number.”

During the vetting process, the judges at LHC and RocketSpace looked at “topic, team and target,” Wiederhold said. “It was a very open process.” After a quick screening for basic ideas, to make sure there was some kind of digital component that involved the customer’s perspective, they focused next on the makeup of the team to see if they meshed together well, followed by a third look at their business plans.

Other selection criteria, said RocketSpace’s Logan, included the existence of seed funding, a product either in market or ready to launch, and a connection to the program’s key technology themes, which were smart warehouse, smart transport and smart commerce/trade. “These factors help ensure that the startup is mature enough for productive collaboration and potential partnerships,” he said.

In the end, the accelerator wound up with eight companies, “all focused on different topics — robotics, distribution platforms, warehousing platforms,” Wiederhold said (see Sidebar on the 2016 class). In mid-June, the startups began their five-month process to develop their ideas and possibly create pilot opportunities by September. During that time, she added, LHC and Kaleido will provide guidance and mentoring advice along their journey.

Unlike traditional corporate accelerators confined to a single corporation, the Logistics Tech Accelerator uses “an open innovation model by including multiple corporate members, startups and industry mentors to draw from their diverse expertise,” Logan said.

The focus of the program, he added, will be on “practical aspects of a growing startup, with an emphasis on sales, fundraising, marketing and growth, and product.” Startups will share all necessary costs, participate in weekly meetups and attend speaker series and other programs.

At the end of the project, the RocketSpace accelerator model also goes beyond the “typical demo day,” Logan added, and will include pilot testing. The ultimate goal, he said, is to not just reach a “proof of concept” but to progress toward “a commercially viable product.”