Logistics market dwarfs software addressable market
Physical goods companies spend a significantly higher percentage of revenue on logistics than on software, making logistics a structurally larger addressable market.
The argument
Petersen argued that medium-sized physical goods companies typically spend around 5% of their revenue on logistics, a scale of expenditure that dwarfs their software spend, even when compared to major enterprise platforms like Oracle.
The thesis, stress-tested
✓ What validates it
- ✓Logistics spend maintaining its ~11% share of global GDP
- ✓Enterprise software sales growth slowing relative to physical supply chain investments
▸ Risks discussed
- ▸Cyclical downturns in global trade volume
- ▸Automation reducing overall logistics costs faster than volume growth
Hear it yourself
"Dude, I wanna start on what motivates you more. I'm finding this really interesting pattern. It's either the fear of losing or it's the thrill of winning. Which one is it for you? Interesting question. Probably the fear of losing. Why? I don't wanna be a loser. We just like to you never win enough. Right? Like, you I've already won, and yet I still am like I don't feel like I won by any standard of what I set out when I started the company. Like, I've won. My my first and only financial model that I made for myself for the business got to 1,000,000 of revenue."
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