Operators in the shipping and cargo service industry face substantial hurdles given the complexity of providing and executing best-in-class services across the entire supply chain. Retail and e-commerce brands aim to ensure a seamless ordering and receiving experience while maintaining competitive transportation costs. Airlines aim to optimize cargo load utilization and fulfillment rates, to turn cargo fulfillment into a steady revenue source. Historically, the focus in this space has been on standardizing pricing and streamlining last-mile delivery and logistics, with the first- and middle-mile solutions largely going untouched and underserved.
This is where ClearJet comes into play. CEO and Founder Chris Guggenheim and his team are building a one-of-a-kind delivery infrastructure solution for the e-commerce ecosystem, enabling retailers to establish their own nationwide 2-day delivery networks. The team has an impressive background, comprising multiple-time founders and savvy operators with expertise in enterprise logistics, e-commerce, and aviation.
ClearJet’s platform includes an efficient decision-making engine that helps retailers find optimal routes for their shipping needs while allowing airlines to share up-to-date cargo capacity. The demand for an efficient shipping process has intensified, driven by both cost considerations and its critical role in the supply chain network. Ground transportation costs have risen due to the increased demand for shipping large parcels and the surge in e-commerce brands, leading to substantial shipping prices. In contrast, air cargo costs have fluctuated, presenting an opportunity for air carriers to capture the market. The chart below illustrates the expanding gap between diesel and jet fuel prices, highlighting how the air shipping business can capitalize on the lower unit economics of fueling.
For JetBlue, this presents a potential future pathway into the air cargo shipping and logistics space, offering the airline an opportunity to generate additional ancillary revenue by utilizing underutilized cargo space routes.
Why we doubled down
ClearJet has demonstrated impressive growth since our initial investment in 2023, establishing partnerships with fast-growing e-commerce companies, key airlines, and notable third-party logistics (3PL) companies to create a seamless delivery network.
The company has consistently exceeded revenue expectations and has created a substantial network effect through its early successes with launch airlines and e-commerce brands. For example, a $350M+ brand is already processing over 10,000 shipments daily using ClearJet, with that number growing substantially. As ClearJet continues to prove itself, it has seen an increase in customers and, more importantly, in the amount of cargo space it occupies within airlines and the volume of parcels it handles for e-commerce and 3PL companies.
In terms of territorial coverage, ClearJet is ahead of the curve with a national air distribution network that achieves 100% zip code coverage in the U.S., with plans to expand internationally soon. The company has also developed a single API for all retailers and carriers to manage their operations from one place, aiming to minimize redundancies in different routes and disrupt the long-zone shipping standards that the industry has become accustomed to.
JetBlue Ventures is excited to continue to invest in and work with ClearJet as they revolutionize the delivery e-commerce space. There’s much more to come as the company expands into the reverse logistics space and tests several disruptive products (in stealth) that everyone should be on the lookout for when launched!
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