Billions are wasted on inefficient shipping each year in Europe. But six MBA entrepreneurs from IE Business School are driving the industry to new heights with a start-up.
As soon as Emiliano Luzzi picks up his cell, he is onto the problems with the shipping industry. “Inefficiency”, “logistics”, “charged a premium”, “usual fees,” snaps the IE Business School soon-to-be-graduate. He is just getting warmed up, telling me about the transportation business he co-founded last year, when he suddenly changes tune. “It’s strange and hard in this industry,” says the entrepreneur, who launched LetsCargo in October last year.
“The companies which ship stuff – that’s their main business. If it goes wrong, for any reason, they lose a lot of money. Building trust is a big challenge.”
His shipping and logistics company has been sailing on stormy seas for the past six months. LetsCargo has pooled about €10,000 in funding into operations, €1,500 of which came from Emiliano’s own pocket. It might not seem like much – but he is also paying off the tuition of a full-time MBA.
The six other co-founders – Cian Kennedy, Nishant Agarwal, Joao Alexandre, Maria Boluarte, Maria Felez and David Andreu – are from IE’s MBA and Master in Management programs. They will all share those financial considerations.
Emiliano’s cohort are set to finish on May 23. But they haven’t let it slow them down. It speaks wonders for their entrepreneurial mentality.
But, then, this is a guy who spent the past five years as a consultant. Emiliano’s career switch has been remarkable. Much of that is down to his time at IE, the leading Spanish business school.
Emiliano’s enviable transition has just become even smoother. His business is in IE’s Venture Lab, a start-up accelerator for students and alumni. LetsCargo has utilized the expert support.
The company is one of the newest additions to the Lab’s 50 high-potential start-ups. It is a competitive process and about 20 per cent of entrants launch their business ideas full-time or secure funding after graduation.
Assessing the progress his team have made, Emiliano is quick to point out the importance of his MBA. Networking has also been essential. “IE has a strong name in Europe,” Emiliano enthuses.
“I’m focused on start-ups and entrepreneurship. And because I wanted to do something just for myself, start my own company, I thought IE would be a good [fit]. I wanted some time to focus on myself and form an idea, and IE was an easy choice because of the focus on entrepreneurship.”
A start-up focus does not tell the whole story, though. There are many achievements on Emiliano’s resume. But he felt an MBA would add fire-power to his arsenal.
“I thought I was lacking some critical knowledge in terms of finance," says Emiliano, passionately spoken. "I also wanted to experience what doing an MBA means in terms of knowing different people, cultures and backgrounds. This pushed me into IE."
He made his first big career-move when he interned at Accenture, the leading management consultancy. After six months, he moved onto everis, another consultancy, before returning to Accenture in a senior role. The firm sent him working around Saudi Arabia, the United Arab Emirates, Poland and Italy. After a couple of years, he transitioned into an associate position at MasterCard Advisors.
Emiliano, who has an engineering background, emphasises his need for change. “I wanted to do something different,” he says. “I’ve always been interested in venture capital and entrepreneurship, always tried to invest in businesses and different areas.”
For Emiliano the entrepreneur, that means having eggs in different baskets. It helps keep him busy all the time. He always wants to know “as much as I can about every industry I’m interested in”. He insists going down the transportation route was the right direction for him at the time.
A consultancy background means he is flexible. “I’ve developed the ability to work in any industry with any background, so it’s not difficult for me understanding how it worked,” explains Emiliano.
This multiple-industry strategy, a favourite of MBA students, is the hallmark of today’s entrepreneur. LetsCargo, based in Madrid, is, like many start-ups, grappling with how to best build up a reputable standing with clients.
But the business may well be much bigger than Spain; the founders have a Europe-wide ambition. For that, they will have to connect with clients and businesses across shipping routes across the world.
LetsCargo is the first online platform which helps firms with similar transport needs reduce their costs through horizontal collaboration. The company was borne out of the frustration of a team-member, during her previous job in a logistics company and as a logistics manager for a national supermarket.
The co-founders aim to be a new generation of freight exchange providers, providing shippers direct access to individual transporters who provide the bulk of their supply.
For shippers, the business offers “group purchasing", which generates scale and drives down unit costs. It could also save them a 20 per cent commission fee typically charged by logistics providers. For transporters, LetsCargo hopes to improve average load factors, through pre-arranged return journeys. The goal is to provide a solution which climates the return "fee premium". It will also improve competitiveness.
Inefficiency is seemingly a word that blights the transportation industry. LetsCargo estimates that, in European road freight transport, average load factors are less than 60 per cent. On one out of every four journeys, the truck is completely empty.
The EU’s CO3 Project estimates that such inefficacy costs the industry €160 billion. About €13 billion is attributed to Spain. Much of the problem can be attributed to the market’s fragmentation.
LetsCargo wants to bring in more collaboration. They will take a 1 per cent cut of the transportation fee. The service is currently free. The current industry's “men in the middle” take up to 20 per cent of total transportation costs.
The co-founders hope to pitch to investors soon – presumably once the MBA is out of the way. They have one partnership with a shipping organization, but another is in the works. LetsCargo want to work with 2,000 clients by the end of 2015. One shipping association they hope to net has about 150,000 companies associated with them. You can see the potential.
“We’ve changed the idea a couple of times and added more features,” says Emiliano. “We don’t classify ourselves as the man in the middle. We are just a connector of shippers and transporters.”
At first, everyone had different ideas. Internal squabbling may have been a challenge. “But it’s just part of the game,” says Emiliano. He continues: “The latest version of the platform has been online for a month. We started developing the idea around September or October [2013].”
An MBA has made the path somewhat easier. He is more comfortable about the company’s financials. But his main role within the company is marketing.
“I was able to develop very good academic knowledge, but also network with bright people from different parts of the world. I am happy with my decision,” he says.
But what about the financials of an MBA? Leaving a consulting gig with MasterCard, paying for tuition and launching a business is quite a full plate.
Emiliano laughs off the question. “In the meantime, I also had a daughter. So everything has changed,” he says. “But we planned to have some money, a back-up in-case I couldn’t find a job straight after the MBA. So we’re safe.”
Student Reviews
My Review
Madrid Is incredible, I've had a fantastic time at IE University. I've had some excellent lecturers overall. They sincerely want the students to flourish and are concerned about developing a personal relationship with them. Having said that, students typically must fulfil their half of the contract by putting in the necessary work and demonstrating a desire to achieve success.
Coming Master
I spent 1 semester on my Erasmus during my BBA trip. This was the great experience and after that I decode to enroll for the master program there. I must say that the only disappointing fact is connected to distribution of the students. Master students are being connected to the old campus what is not fully fail.
Former BBA
As the former BBA student I can say that the level of the learning is quite high. In addition the place (IE Tower) is probably one of the most innovative and networking-support place in the Europe. I totally recoupment this Uni for business students.
International focus
IE university has a global perspective and attracts a highly diverse student body, with students from all over the world. This international environment fosters cross-cultural understanding and prepares students to work in a globalized world. This is same for the faculty members as well, the university's faculty members are from diverse parts of the world and are reputable. they are not only experts in their fields but are also often actively engaged in research and industry. Their practical experience and academic expertise create a stimulating learning environment.
Loved it
IE University, in my experience as a student, stands out as an outstanding institution for higher education. Its international perspective is a major strength, evident in the diverse student body that represents a multitude of countries and cultures. Interacting with such a global community has broadened my horizons and deepened my understanding of various subjects, providing a rich and comprehensive educational experience.
The quality of the faculty at IE University is exceptional. Many professors bring real-world experience to the classroom, making the learning process more practical and relevant. This approach not only enhances engagement with coursework but also ensures that students are well-prepared for their future careers. The accessibility of professors and their willingness to engage with students personally fosters a collaborative and supportive learning environment.
Practical learning is another significant advantage at IE University. The integration of real-world projects, internships, and case studies bridges the gap between theory and practice. This emphasis on hands-on experience equips students with practical skills and industry insights, making them more competitive in the job market.
IE University offers a wide range of programs across various fields of study, making it a versatile choice for both undergraduate and postgraduate students. This diversity ensures that individuals can find a program that aligns with their academic and career interests.
However, like any institution, IE University has its challenges. The cost of attending can be a major concern for some students, as tuition fees are relatively high. While scholarships and financial aid are available, not all students may qualify for them. This financial aspect is an important consideration, particularly for those with budget limitations.
The competitive nature of some courses and programs can create a high-pressure environment. While competition can be motivating for some, it may also lead to stress for others. Maintaining high academic standards can be demanding, and students should strive for a balance between excellence and well-being.
The workload can be quite challenging, especially for students undertaking double degrees or heavily involved in extracurricular activities. Effective time management is essential to manage academic demands while maintaining a healthy work-life balance.
In conclusion, I would recommend IE University to prospective students with specific considerations. If you value an international perspective, practical learning, and a diverse educational environment, IE University is an excellent choice. However, it's crucial to carefully weigh the tuition costs against the benefits and to be prepared for the competitive nature of some courses. Students should also be ready to handle a demanding workload. IE University has provided me with a rich and globally-focused education, equipping me for a career in an interconnected world. Ultimately, it's important to make an informed decision based on your educational and financial goals, along with a willingness to confront the challenges that may arise.
Rather Exciting
As a student at IE University, enrolled in the Business Administration program, I can confidently say that my experience at this institution has been overwhelmingly positive. IE University's innovative approach to education stands out as one of its most remarkable features. The interactive classes and focus on critical thinking, particularly through the use of case studies, have significantly enhanced my ability to apply theoretical knowledge to real-world business scenarios. Additionally, the global perspective at IE University, fostered by the diverse student body and international faculty, has broadened my understanding of global business practices, which is crucial in the field of Business Administration.
The university's strong industry connections have proven to be invaluable. These connections provide students with numerous internship opportunities and networking prospects, allowing us to gain practical experience and build professional relationships while still studying. Moreover, the comprehensive career support services offered by IE University, such as resume building, interview preparation, and job placement assistance, have been instrumental in preparing us for the job market.
On the flip side, it's important to mention that tuition costs at IE University can be relatively high, which may pose a financial challenge for some students, even though there are scholarships and financial aid options available. Additionally, the programs at IE University can be intensive, demanding a significant time commitment, which might not align with everyone's preferences.
In conclusion, I wholeheartedly recommend IE University to individuals considering a degree in Business Administration. The innovative teaching methods, global perspective, strong industry connections, and comprehensive career support make it an excellent choice for those aspiring to enter the world of business. However, prospective students should be aware of the financial considerations and be prepared for the intensive nature of the programs. If you're willing to invest in your education and are dedicated to your studies, IE University offers an exceptional and enriching educational experience in the field of Business Administration.
A Decent Experience
I've had the privilege of being a student at IE University, where I've been pursuing a degree in arts. My experience at IE University has been highly rewarding and unique. One of the aspects I appreciate the most is the university's strong emphasis on interdisciplinary learning. The opportunity to collaborate with students from diverse fields, including business, technology, and social sciences, has enriched my artistic endeavors. This cross-pollination of ideas has added depth and diversity to my creative work.
IE University's international perspective is another significant advantage. The institution's diverse student body and faculty from various corners of the world have broadened my artistic horizons and encouraged me to think more globally. In the field of arts, where cultural influences play a pivotal role, this global outlook has been invaluable.
The university also invests in modern resources and technology, providing students with access to cutting-edge software, creative tools, and state-of-the-art facilities. These resources have allowed me to explore new mediums and techniques, pushing the boundaries of my creativity.
Furthermore, IE University places a strong emphasis on practical experiences. This practical orientation has given me insights into the professional art world and how to navigate it effectively. Opportunities for internships and collaborations with art institutions have been instrumental in bridging the gap between academic learning and real-world application.
On the downside, tuition costs at IE University can be relatively high, which may pose a financial challenge for some prospective students. Additionally, the university's programs are quite intensive, demanding a substantial time commitment and strong time management skills.
In conclusion, I would wholeheartedly recommend IE University to students seeking an arts education with an interdisciplinary and global perspective. The institution's innovative resources, practical experiences, and international approach have significantly enriched my artistic journey. Nevertheless, it's crucial to consider the financial aspect and be prepared for the demanding nature of the programs. If you're willing to invest in your arts education and are committed to hard work, IE University offers a truly unique and rewarding artistic experience.
A Great Experience
As a student at IE University studying architecture, I have a unique perspective on the institution. Let me share my thoughts on this university:
Overall, my experience at IE University has been quite positive. The university's commitment to a holistic education, combined with its innovative approach to learning, has made my time here rewarding. Here are some key aspects I appreciate:
Interdisciplinary Approach: IE University places a strong emphasis on interdisciplinary learning. In the field of architecture, this means I've had the opportunity to collaborate with students from various backgrounds, such as engineering, business, and design. It's been enlightening to work on projects that integrate different disciplines, mirroring the real-world scenarios architects often find themselves in.
Faculty and Industry Connections: The professors at IE University are experienced professionals in their respective fields, and they bring a wealth of practical knowledge into the classroom. This has greatly enriched my architectural education. Additionally, the university's strong connections with industry professionals and firms provide students with valuable networking opportunities and potential internships.
Global Perspective: IE University's international approach to education is a significant advantage. I've had the chance to collaborate with students from all over the world, which has broadened my cultural awareness and global perspective. This is particularly important in architecture, as it's a field where global influences and trends play a significant role.
Innovation and Technology: The university's commitment to staying at the forefront of technological advancements is impressive. In architecture, this means access to cutting-edge software, tools, and resources, which have been instrumental in my academic and design work.
On the flip side, there are a few aspects that might not suit everyone:
Tuition Costs: IE University is a private institution, and as such, tuition can be on the higher side. This might be a challenge for some students, but there are scholarship opportunities and financial aid options available.
Intensive Programs: The university's programs are often quite intensive, requiring a significant time commitment. While this can be beneficial for learning, it can also be demanding, so time management skills are crucial.
In conclusion, I would certainly recommend IE University to those interested in studying architecture. Its unique approach to education, international perspective, and strong industry connections have enriched my architectural journey. Just keep in mind the financial considerations and be prepared to put in the effort, and you'll find a stimulating and rewarding academic experience at IE University.
A Global and Innovative Learning Experience
IE University is a dynamic and innovative institution that has gained recognition for its unique approach to education. There are several aspects that make it stand out, and while it may not be the perfect fit for everyone, it certainly has a lot to offer.
One of the notable strengths of IE University is its commitment to fostering a global perspective. The university attracts a diverse student body from all over the world, creating a rich multicultural environment. This diversity enriches the classroom experience and prepares students to thrive in an increasingly interconnected world. The emphasis on international exposure through study abroad programs, exchange partnerships, and a global network of alumni further enhances this global outlook.
IE University is also known for its focus on entrepreneurship and innovation. The institution places a strong emphasis on practical, real-world learning experiences that encourage students to develop an entrepreneurial mindset. This approach aligns well with the demands of the modern job market, where creativity and adaptability are highly valued.
Furthermore, IE University's faculty is often comprised of professionals with extensive industry experience, providing students with valuable insights and connections in their respective fields. The small class sizes enable more personalized attention, fostering a close-knit community and facilitating meaningful interactions between students and professors.
However, no university is without its drawbacks, and IE University is no exception. One potential downside is the cost of tuition, which can be relatively high compared to some public institutions. While scholarships and financial aid options are available, this cost may still be a barrier for some prospective students.
Another consideration is the intensity of the academic programs. IE University is known for its rigorous curriculum, and students often find themselves facing a demanding workload. While this can be an advantage for those who thrive in a challenging environment, it may not be suitable for individuals seeking a more relaxed college experience.
In conclusion, IE University is an excellent choice for students who are looking for a globally oriented, innovative, and academically rigorous education. Its emphasis on entrepreneurship, international exposure, and practical learning experiences can prepare students for success in a competitive job market. However, the high cost of tuition and the demanding nature of the programs should be carefully considered. Ultimately, whether IE University is the right fit depends on the individual's goals and preferences, but for those who are up to the challenge, it can be a rewarding and transformative educational experience.
The liquid learning method
I do like my program so much, since it gives me the possibility to develop my own personal skills while building a strong professional cv with plenty of extracurricular material. The amenities are extraordinary and the campus is super professional and convenient for networking!
The variety of courses
This university has provided me with the perfect university experience, complete with numerous resources that help students reach their goals. The beauty of this university is the variety of courses offered, and how the diverse nature of courses can prepare you for the real world.
High quality
The course has high-quality content, lessons, and educational materials. Everything is precise, concise, and well-explained so that this part can stay the same. It effectively provides full fundamental knowledge on the subject and suggests how to learn each concrete subtopic of digital marketing further. So, at the end of the course, I understood all the topics and substantially improved my skills in cooperation with marketing departments. The course also showed me approaches and tools to execute digital marketing so I can do the job myself.
As for improvements, it would be nice to work on the part dealing with tasks and developing individual projects. I felt like I needed more time for that. Doing homework and projects is essential for effective learning, but more time was required, harming the quality. Practice and individual projects should have more time and interactions between the students and the professor or learning facilitators. The course provided such opportunities for interaction, but doing the projects in a rush made it impossible to be prepared with questions for those meetings. Also, the more time students spend on practical tasks, the more they will remember. So, it would be great to extend the timing of the practice part.
